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Synergy Health’s third quarter revenue rises on contract wins

- Revenues rise in Q3
- Contract wins in America boost results
- Europe and Middle East revenue fall

Synergy Health, which outsources support services to hospitals, saw revenue rise 8.4 per cent to 286.9m pounds in the third quarter on the back of an increase in contract wins in the Americas.

Underlying revenue surged 40.2% to £59.3m in the Americas after the group won two Hospital Sterilisation Services (HSS), two Reusable Surgical Services (RSS) and two Applied Sterilisation Technology (AST) contracts, together worth £230m.

In the UK and Ireland, revenue increased by 1.4% to £122m, driven by growth in the Applied Sterilisation Technologies business which achieved strong performance from gamma and electron beam technologies.

Growth in the Americas and the UK offset a 4.2% decrease in Europe and Middle East revenue, dragged down by the effect of market price erosion in the Dutch linen business.

While revenue in Asia and Africa increased by 6.6% it missed management’s expectations, partly due to decreased demand in the US.

‘With our contract wins to date our forward order book has increased to approximately £1.35bn and this establishes the group in a strong position for sustainable growth,’ the firm said.

Shares rose 0.88% to 1,259p at 09:30 on Friday.

RD

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