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Synergy Health - To open further units in China

December 2009

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SYR
  • Price:
  • 651p
Synergy Health has reported a strong H1 with sales up 7% to £142.7m and pretax profit up 20% to £14.9m. Adjusted eps was up 17% to 20.6p. The strongest growing service line has been Synergy's decontamination services arm, which decontaminates instruments for the NHS at both on-site and off-site facilities on long-term contracts. The problem Synergy had to contend with last year had been that some of the large decontamination sites had not only been prone to delays in the tendering process but had also seen a slower than expected filling. This meant costs ran ahead of turnover on some contracts last year. However, having restructured the business and strengthened its management, things have improved with sales on this side stated ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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