20th Apr 2009 07:00
Monday 20 April 2009
SYNERGY HEALTH PLC
("Synergy", "the Company" or "the Group")
Year end trading update
Synergy (SYR.L), a leading provider of outsourced healthcare support services in the UK, Continental Europe, Asia and South Africa, provides an update on trading for the three months to 29 March 2009 prior to the release of its preliminary results on 4 June 2009, which are expected to be in line with market expectations.
The business has continued to perform in line with expectations, carrying on the trends reported in Q3. All ongoing Group businesses have continued to see sustained sales growth with the exception of the relatively small drug and alcohol testing laboratories business which continues to be directly affected by the economic downturn.
As noted in the IMS announced on 21 January, we have closed a number of operating sites and have taken other restructuring actions to offset the margin dilution caused by increased energy charges. These costs will be taken as non-recurring charges in the Income Statement. These actions, together with a restoration of margins in our Decontamination business, have resulted in a better margin performance in Q4. We start the new financial year in a much stronger position and on plan to recover Group net operating margins to levels previously achieved by the autumn of 2009, in line with previous guidance.
Net debt has edged up slightly to £170m from £167m in Q3 due to expenditure associated with a number of large capital projects in the period, which are now drawing to a close. Cash flow remains strong and we continue to operate comfortably within the covenants agreed with our banking syndicate.
Enquiries:
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Synergy Health plc |
01793 891891 |
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Dr Richard Steeves, Chief Executive Ivan Jacques, Finance Director |
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Morgan Stanley |
020 7677 2395 |
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Peter Moorhouse |
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Investec |
020 7597 5970 |
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Patrick Robb |
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Financial Dynamics |
020 7831 3113 |
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Ben Brewerton / Emma Thompson |
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