Financial Highlights
Strong reported revenue growth of 15.8%
Underlying revenue growth, excluding currency effects, up 18.5%
Adjusted operating profit* margin minimally diluted by the SRI acquisition, down by 0.1% to 15.6% (2012: 15.7%)
Operating cashflow* increased 12.0% to £95.2 million (2012: £85.0 million)
Adjusted EBITDA increased 13.2% to £99.3 million (2012: £87.7 million)
Net debt increased to £177.3 million (2012: £173.5 million), reflecting recent debt-funded acquisitions and currency movements
Total dividend up 15%, in line with growth in adjusted earnings
Operational Highlights
Strong bid books in US Hospital Sterilisation Services ('HSS') business, with good conversion to preferred bidder status
Following the acquisition of SRI, cost leadership and the launch of improved services have delivered margin targets earlier than expected
In China we have signed a marketing agreement with Sinopharm. Our second HSS facility is due to open early 2014
Third gamma irradiation facility operational in Malaysia, following Government outsourcing
X-ray technology supporting good Applied Sterilisation Technologies ('AST') growth in Europe & Middle East of 24.8%
Marcoule construction completed and sterilisation of customer products expected to commence late summer 2013
Focus on margin improvement in UK & Ireland region
Strengthening of regional management teams as approximately a quarter of revenue is generated in the Americas and Asia & Africa regions
Outlook
Good opportunities in Asia and the Americas support strong focus on these two regions
Entry into US HSS market expected to support growth rates
Optimistic that our strategy to expand internationally will sustain current growth rates
Richard Steeves, Chief Executive of Synergy Health, said:
"Synergy is a global leader in outsourced sterilisation services for medical device manufacturers, hospitals and other industries. Synergy also provides other niche outsourced services, such as healthcare linen, pathology, and specialist laboratory services. All of our businesses have the benefit of significant barriers to entry, stable long-term contracts, and good cash generation."
"Synergy will continue to implement its strategy to develop its services internationally with a particular focus on Asia and the Americas. Throughout the year the number of business development opportunities has increased significantly, and as a result the Board is confident that Synergy will enjoy another successful year of growth in line with its objectives."
*Note: Adjusted operating profit, adjusted profit before tax and adjusted earnings per share exclude amortisation of acquired intangibles, non-recurring items and acquisition-related costs, as shown in the Group's consolidated income statement and the accompanying notes. Operating cash flow is before non-recurring items and acquisition-related costs.
