Financial Highlights
Reported revenue growth of 7.5%. Underlying growth, excluding currency effects, of 10.8%
Adjusted operating profit growth of 5.3%. Underlying growth, excluding currency effects, of 9.4%
Adjusted operating profit margin decreased by 30 basis points to 15.8% (2014: 16.1%), with increased expenditure on research and development
Operating cashflow increased 1.6% to £99.6 million (2014: £98.0 million), with cash conversion of 92% (2014: 95%)
Net debt increased to £161.1 million (2014: £147.6 million)
Return on average capital employed ('ROCE') increased to 12.4% (2014: 12.0%)
As a result of the proposed combination with STERIS Corporation ('STERIS'), the Board chose not to pay an interim dividend, and is not proposing to pay a final dividend (2014: 14.20p). The Board will continue to keep its dividend policy under review.
Operational Highlights
Solid growth in Applied Sterilisation Technologies ('AST') with revenues up 19.4% on a constant currency basis. New capacity is being added across Europe, Asia and the Americas
Healthcare Services ('HS') grew by 12.2% on a constant currency basis, with new contracts and an excellent start to the Sterilmed contract
Synergy's largest ever HS contract in New York will now open in the first quarter of 2016
Healthcare Solutions ('HCS') revenues declined by just 1.5% on a constant currency basis, reflecting a stronger year with improved market stability
Order book maintained at £1.6 billion; HS bid book stands at £225 million
After the close of the financial year, we won a further two major new US HS contracts, with a combined contract value of £17 million
Outlook
The new financial year has started well, with the benefit of new capacity in our AST business, new contracts in HS and a more positive outlook in our HCS businesses. The Group is well placed to sustain its growth over the medium and long term.
Richard Steeves, Chief Executive of Synergy Health, said:
"We have made good progress this year on our objectives. In the near term we will continue to focus on investing to deliver our strategy. I am personally very excited about the opportunities at hand, and look forward to seeing the continued growth of this business"
