Strong 2013 order intake gives Synergy healthy outlook

January 19, 2014

Synergy, the Swindon-based group providing outsourced services to the global health market, has strengthened its order book to £1.35bn following a spate of contract wins in international markets.

The group, whose services span sterilisation of medical equipment to linen supplies, said the boost put in a strong position for sustainable growth.

In an update on its trading performance to the London Stock Exchange, it also said revenues rose by 8.4% to £286.9m in the nine months to December 29.

The best performing market was the Americas, where underlying revenue increased by 40.2% including the first full-year contribution by SRI, the market-leading US sterilisation services group it acquired for $25.1m (£16.2m) in June 2012. Synergy also won six contracts together worth £230m during the period. 

Underlying revenue growth in the UK and Ireland increased by 1.4%, reflecting what Synergy described as a solid performance, including a strong contribution from its gamma and electron beam technologies.

“Our pipeline of new business opportunities remains healthy, however NHS decision making remains slow,” it said

Underlying revenue in the Europe and the Middle East fell by 4.2%, reflecting market price erosion in its Dutch linen business. However, underlying revenue growth in Asia & Africa increased by 6.6%, due to contract wins in Thailand and China – a high-potential market for Synergy.

The group will provide a further update at the end of its next quarter in April and will report its preliminary results on June 4.

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