Synergy Health IMS

Delivers a range of specialist outsourced services to healthcare providers and other clients concerned with health management. Such as hospital sterilisation services; applied sterilisation technologies for single-use medical devices; reusable surgical solutions for daily delivery of sterile reusable gowns and towels; clinical pathology, toxicology and microbiological services; chemical and microbiological analysis; linen management services for healthcare facilities and product solutions designed for infection prevention and control, patient hygiene, surgical procedures and wound care.  I have a holding in my growth portfolio (epic code: SYR)

Synergy Health issued their IMS this morning, declaring that revenue for the three months to 30 June 2013 increased by 21.9% to £96.6 million.  This includes the effects of currency and acquisitions, excluding theses items they state that organic growth "...is in line with last year...".  I am assuming that this means that there was no organic growth, rather than organic growth was the same as last year's 2.4%.  This is not a particularly clear statement.

They state that there has been a slightly slower start to the year, with US healthcare volumes static as a result of structural changes in the market filtering through from the Patient Protection and Affordable Care Act, together with the continued impact of austerity measures in the UK and Europe.

Operating margins for the quarter were ahead of plan, despite increased investment in business development.

The result of this is that trading for the quarter has been in line with management's expectations.

After a good set of full year results announced in June, this slow start to the year will likely pull back the share price over the next few days.

In addition to the IMS, board changes were announced.  After 11 years serving as non-exec Chairman, Sir Duncan Nichol announced that he will retire on 31 March 2014. Dr Richard Steeves, the Group CEO, will succeed him. Dr Adrian Coward, the Regional CEO for the UK and Ireland for the past 3 years will step up to take over as CEO.