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)
In a trading update today Synergy Health stated that underlying organic revenue growth has continued to be challenging during the first six months, so revenue will be towards the lower end of market expectations.
On a positive note they mention that solid margins have ensured that earnings growth remains on course. Also management state that they have made good progress with outsourcing opportunities that will have a material impact on organic growth in the near future, so I'm assuming that there will be a pick-up during the second half. If margins are as good in the second half as in the first, then they may exceed their expected 72p EPS for the year to March. At 13.9x expected earnings for this year, they look reasonably priced, for a more detailed note see here.
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