Long term 'healthy' outlook for Synergy

Friday, 15th February 2013

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Synergy Health has reported a boost in its revenue for the first nine months of its financial year but said it was taking “aggressive” measures to control costs because of short term pressures on margins.

The Swindon-based business posted revenue of £273m for the nine months to 30 December 2012 – up from £232.5m a year earlier.

The medical sterilisation outsourcing company said the Americas was its highest growth region, with the first contribution from its acquisition of SRI, a Florida-based business it bought in June.

In the UK and Ireland, revenue “remained steady” but year-on-year revenues in its products-based business was down because of the discontinuation of unprofitable work and lower demand from the NHS.

It said the outlook for 2014 and beyond was “very healthy” but revenue is set to fall short in the next two quarters because of “extreme price compression” in the Dutch linen market and the NHS’s lower demands.

It added that it was also set to be impacted by the “delayed start” of its applied sterilisation services business at facilities in Marcoule and Costa Rica.

Synergy is set to announce its full year results in June.

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