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SYR Synergy Hlth.

2,325.00
0.00 (0.00%)
17 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Synergy Hlth. LSE:SYR London Ordinary Share GB0030757263 ORD 0.625P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 2,325.00 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
  -
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 2,325.00 GBX

Synergy Health (SYR) Latest News

Real-Time news about Synergy Hlth. (London Stock Exchange): 0 recent articles

Synergy Health (SYR) Discussions and Chat

Synergy Health Forums and Chat

Date Time Title Posts
03/11/201522:17Synergy...a clean up act in the NHS194
24/4/200820:58Synergy Healthcare going whoooossshhhhh54
11/5/200617:11Sidney Resources: Mexican small cap Miner26
30/6/200321:00Syria Next?6
19/3/200311:40Oi...premium board users...share a little on SYR !!!86

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Synergy Health (SYR) Most Recent Trades

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Synergy Health (SYR) Top Chat Posts

Top Posts
Posted at 08/2/2013 19:12 by analyst
Investors Chronicle says Sell


Shares in cleaning and sterilisation specialist Synergy Health (SYR) have been notably strong performers lately, outpacing shares in similar companies by 20 per cent over the past quarter on the back of some promising deals in new markets. True, Synergy almost certainly has a solid future in its key markets, but, in the medium-term, the share rating has moved too far ahead of the group's growth prospects. Really brave punters might try 'short selling' the stock; meanwhile, shareholders might simply opt to sell.

The trigger for the big share-price move was Synergy's decisive entry into the US hospitals market. The acquisition of SRI/Surgical Express, in particular, for $25m (£17m) got the City's admiration, especially because the price paid looked good for a business generating sales of more than $100m.

However, it is not clear what effect the expansion will have on Synergy's underlying profit margins. These were more than 15 per cent in the first half of 2012-13, but there is a risk that the peculiarities of the US business could eat into them. This is because most US hospitals, unlike those in Synergy's core business with the NHS, have their own sterilising and cleansing facilities on-site. That means Synergy would be paid a fee as a service provider, rather than as a more lucrative full-facility operator.

There is no doubt that the US market is far larger than anything Synergy has entered so far and the opportunities are there. However, the question hanging over the States-side project is whether investors have taken into account the amount of investment needed over the next few years to bring the service up to Synergy's standards. That could generate big one-off costs that may not be adequately priced in.


As support services businesses go, Synergy is unusual because a lot of its capital is tied up in tangible assets. That's because often it has to fund and build hospital cleaning facilities itself for the contracts it wins. That means lots of upfront spending in order to grow sales, as each new contract can mean another round of construction.

Analysts at broker CanaccordGenuity estimate that to achieve an adequate cashflow return on its capital of around 8 per cent, the company must invest between £15m and £30m annually to generate the required income. This inhibits shareholders' returns as the lead time between winning a contract and starting operations is between 18 months to two years. CanaccordGenuity estimates that the company will clock up capital spending of £75m over the next three years. Given the lag between spending and revenue-generation, sales growth will be deferred, making Synergy much more cyclical than is generally perceived.


Synergy also has its share of immediate problems resulting from austerity in the European Union. This affects its Dutch business supplying hospital linen, in particular. Meanwhile, a spending squeeze in the NHS, while not affecting existing contracts due to the importance for patient care, could slow the pipeline of new work that Synergy could bid for.

Share tip summary

Trading on almost 17 times forecast underlying earnings, Synergy's shares are rated just above the UK average for the healthcare services sector at a time when significant parts of its operations face slowing growth in its established markets. Granted, expansion into the US seems like a good move given the size of the market, and European austerity will not last for ever. Yet the rating has moved to a level that is vulnerable to correction if the company fails to outperform the market's expectations. Given the consistently high capital spending Synergy must undertake, the possibility of disappointment is higher than average. Sell.
Posted at 02/1/2013 11:15 by don carter
Yes, because it's one of the most resilient and steady companies around, with this year's adjusted eps likely to come in around 68p and the small divi holding steady. It also has long periods where it is undervalued and no one writes on this BB. I've learned to see the value of SYR.....
Posted at 28/12/2012 17:47 by analyst
Is the current price justified?
Posted at 07/7/2012 20:36 by northernlass
What The Brokers Say

08 June 2012

Singer Capital Markets upgrades Synergy Health from Fair Value to Buy and raises its target price from 887p to 939p.



12 June 2012

Investec reiterates its Buy recommendation for Synergy Health with a target price of 980p.

Morgan Stanley retains its Overweight rating for Synergy Health with a target price of 1085p.



06 July 2012

Jefferies International retains its Buy rating for Synergy Health with a target price of 1150p.



Sources:







P.S.

Here's a couple of links about SCLP, one of the hottest stocks at the moment:
Posted at 07/6/2012 10:48 by don carter
In current climate, these results are good, but next time it would be nice to see a substantial leap forward in growth as a result of these acquisitions. Mind you SYR is as reliable as ever in beating expectations in a dire market, and eps growth is about 13% last year - so let's keep perspective.
Posted at 07/2/2012 17:59 by don carter
Come on SYR, time for a little run to 975p....
Posted at 04/1/2011 17:06 by brownie69
Breakout acheived.

BTW I'm another long term happy holder who has not posted before (on this board)

Entry price averaged 6.18. At 9.27 I would normally top slice to lock away profit, however these have started New Year so well I'm not sure where next resistance level is. Tenner?
Posted at 16/11/2010 14:38 by milacs
Good looking chart and no followers.

Will the share price push through the 800p barrier this time.

M
Posted at 15/9/2010 14:33 by nellie1973
Broker note out-Overweight
Posted at 16/6/2010 09:07 by milacs
Wonderful to see our Directors received their options at 620p per share on Monday.

In profit to the tune of £175,000 already.

One has to wonder!!

M
Synergy Health share price data is direct from the London Stock Exchange

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