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Synergy Health

December 2011

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:
  • 877p
Good interims from Synergy with sales up 12% to £155m and pretax profit up 13% to £20.6m in the six months to 2 October. Eps grew 13% to 28.4p. Margins are broadly similar.As readers will be aware, Synergy's hospital sterilisation service processes reusable devices for operating theatres and is the largest outsourced provider of these services in Europe and China. After a long time waiting, it finally seems to be coming together in China where it has just signed a memo of understanding for a second hospital sterilisation facility at Nantong, following on from the first one in Suzhou. A third contract is in the wings.Globally, this division grew sales 12% organically during the first half with China growing by 25.8% albeit ...

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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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