Financial Highlights
Reported revenue growth of 5.3%. Underlying revenue growth, excluding currency effects, of 4.1%
Adjusted operating profit2 margin increased by 50 basis points to 16.1% (2013: 15.6%)
Operating cashflow increased 2.9% to £98.0 million (2013: £95.2 million), with cash conversion of 95% (2013: 96%)
Net debt decreased to £147.6 million (2013: £177.3 million)
Return on average capital employed ('ROCE') increased to 12.0% (2013: 11.6%)
Total dividend up 10%,emphasising strong free cash flow and confidence in our outlook
Operational Highlights
Won several contracts totalling £48 million per annum, adding £0.5 billion to the forward order book, now at £1.5 billion
In the US, interim services are underway on what is Synergy's largest ever HSS contract win, with a new facility opening in May 2015
In China, we are progressing with the opening of three new HSS facilities in Wuhan, Nanjing, and Chengdu.
Over one quarter of our revenue now comes from our Americas and Asia and Africa regions, up from 22% in 2013, and we expect this trend to continue
In the UK, we have won four new HSS contracts collectively worth £1.6 million per annum
In Europe, we have opened a new gamma irradiation facility at Marcoule, France
After the close of this financial year, we acquired the Bioster Group for €29 million net of cash and debt, extending Synergy's Applied Sterilisation Technologies network into Italy and Eastern Europe.
Outlook
We begin the new fiscal year implementing £48 million of new work over the next 18 months, which will steadily raise Synergy's growth rate. Together with a global bid book of over £100 million per annum, we have confidence in our strategy and our ability to lift our rate of earnings growth.
Richard Steeves, Chief Executive of Synergy Health, said:
"I am confident that Synergy's updated strategy will build on the success we have seen in recent months with new contract wins. The continued internationalisation of our services is broadening the available market, whilst our new structure, new talent and new service range will contribute towards a faster rate of growth."
"We are very excited about the opportunity to expand our laboratories business into the testing, inspection and certification market, creating a new opportunities to deepen our relationships with our AST and HSS customers and broadening our growth opportunities."
