We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Synergy Brands | AMEX:SYR | AMEX | Ordinary Share |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.00 | - |
Hot Features
Premium
RNS Number:8916L
Synergy Healthcare PLC
04 June 2003
Synergy Healthcare plc
Preliminary results for the 52 weeks to 30 March 2003
Synergy Healthcare is a leading provider of outsourced medical support services
within the UK.
A year of substantial progress
FY FY Change
2003 2002 %
Turnover 27.1m 12.7m + 114
Operating profit (adjusted*) 3.1m 1.5m + 98
Profit before tax 2.3m 1.5m + 61
Basic earnings per share 7.42p 7.42p
Basic earnings per share (adjusted 9.98p 7.85p + 27
*)
Dividends per share 2.9p 2.4p + 21
*adjusted for non-recurring costs and goodwill
Highlights
* Strong balance sheet with #6.7 million cash
* Acquisition of Hays Clinical Support Services in April 2002 now fully
integrated.
* Improved Group operating margins following the implementation of
TrakStar and the integration of the acquisition
* Market for sterile services developing rapidly - strong forward order
book > #160m
* 6 new contracts awarded together with the opening of two new clean
rooms
* DOH Decontamination strategy to be published on 12 June 2003 with
expected market developments
Dr Richard Steeves, Chief Executive, commented:
"The demand for outsourced services is growing rapidly and Synergy is focusing
on those services that have a significant value added content and where the
company can achieve technical leadership. Both the Healthtex and Surgical
businesses have achieved these objectives and we will continue to invest in
these operations to sustain this position."
"The first quarter of the new financial year has started well. Activity levels
within the Healthtex business remain high and the Surgical operation continues
to develop its market presence. The Group is confident of another successful
year."
4 June 2003
ENQUIRIES:
Synergy Healthcare plc Tel: 01332 387 100
Dr Richard Steeves
Julia Wilson
College Hill Tel: 020 7457 2020
Nicholas Nelson/Corinna Dorward
CHAIRMAN'S STATEMENT
The year under review was one of substantial progress for Synergy Healthcare
("Synergy"). The financial results for the year were excellent and the Group is
well positioned to take advantage of further opportunities in the surgical
market following the acquisition of Hays Clinical Support Services ("HCSS") at
the start of the year.
Results and dividend
Group turnover for the year has increased 114.3% to #27.1m with 16.1% organic
growth and #12.4m contributed by HCSS. Gross margins were maintained at 32.7%.
Operating margins in the continuing business increased from 13.2% to 13.7%.
The Environmental business, with turnover of #0.5m and an operating loss of
#0.14m, was closed in the year. Non-cash closure costs amounted to #255,000.
Group operating profit before goodwill amortisation and non-recurring costs
amounted to #3.1m. The non-recurring costs related to the re-organisation of
the Group following the acquisition of HCSS.
Basic earnings per share remained level at 7.42p (2002: 7.42p). Adjusted basic
earnings per share increased 27.1% from 7.85p to 9.98p.
Based on this strong performance the Board is recommending that the final
dividend is increased by 25% to 2.0p per ordinary share. This increases the
total dividend for the year by 20.8% from 2.4p to 2.9p.
The final dividend, if approved will be paid on 18 July 2003 to shareholders on
the Register of Members at the close of business on 20 June 2003.
Cash flow and capital investment
Cash flow from operating activities totalled #6.3m, an increase of #3.2m on last
year.
Capital investment included the new instrument processing facility in
Wolverhampton and a new clean room and training facility in Derby. Further
investment was also made in the Healthtex business to increase the operating
efficiency and capacity of existing plants.
Acquisition
In April 2002 the Group raised #12m, through a share issue, to fund the
acquisition of HCSS. Following the acquisition, the Group is now the leading
provider of sterile services in the UK and is well positioned to take advantage
of the opportunities that are now presented in this market following the
strategic review of all NHS in house facilities by the Department of Health.
The business is already benefiting from the cross selling opportunities
resulting from the enlarged customer base and significant progress has been made
improving operating margins from 7.2% at the time of acquisition to 10.2% for
the year.
Employees
All of Synergy's employees have once again shown their commitment to the Group
and the progress we have made this year is the result of their dedication and
enthusiasm.
The Board recognises the contribution that they have made both to the financial
result for the year and also to building successful partnerships with our
customers. I thank them all on behalf of the Board.
Outlook
The first quarter of the new financial year has started well. Activity levels
within the Healthtex business remain high and the Surgical operation continues
to develop its market presence. The Group is confident of another successful
year.
S G Wilson
Chairman
CHIEF EXECUTIVE'S REVIEW
Synergy is an innovative supplier of services to healthcare providers.
Healthtex is the largest focused supplier of linen management services to the
NHS whilst the Surgical business is the largest provider of sterile and other
surgical support services. The market for both of these core services is
growing as the capacity of the NHS is increased together with increasing levels
of outsourcing.
Performance review
It has been an excellent year maintaining performance within the existing
business whilst integrating HCSS, which was acquired on 30 April 2002. Sales
for the Group increased 114.3% to #27.1m with an underlying organic growth rate
of 16.1% within Synergy and 9.6% within HCSS. Group profits before tax
increased by 60.9% after deducting exceptional costs associated with the
acquisition of HCSS and the closure of the Environmental business. Operating
profitability for the continuing business increased from 13.2% to 13.7%.
Healthtex performed well during the year with very positive customer feedback
regarding the quality of its services. As expected, overall sales growth was
lower this year increasing by 7.9% compared with 14.4% last year. The rate of
outsourcing is accelerating however and growth is expected to return to
historical levels in the coming year. The programme of capital investment
within this business continued increasing both quality and overall
profitability.
The Surgical business also performed well with sales increasing by 16.6% on a
like for like basis. Profitability within the business has improved following
the successful integration of HCSS and the release of cost synergies. The
Surgical business has continued to invest in new innovative technology to
support its growth. Quality and service levels continue to set industry
standards and customer feedback is exceptionally positive.
The market for sterile services is developing rapidly. The Department of
Health's plan for outsourcing sterile services is progressing in line with
Synergy's expectations and the overall growth rate will accelerate in the medium
term. Synergy's network of clean rooms is proving to be strategically important
and the expansion of this network will continue.
The Environmental business underwent a strategic review early in the year. The
market fundamentals have not improved and this factor, together with a lack of
scale, resulted in a decision to close the business. The closure has resulted
in a non-cash exceptional cost of #255,000 in the year.
During the year the Group successfully renewed three contracts and won an
additional six contracts.
Strategy
Synergy is a leading provider of outsourced medical support services within the
UK. The demand for outsourced services is growing rapidly and Synergy is
focusing on those services that have a significant value added content and where
the company can achieve technical leadership. Both the Healthtex and Surgical
operations have achieved these objectives and we will continue to invest in
these businesses to sustain this position.
The Board is committed to developing the Group both organically and through
acquisition. As the NHS consolidates its supplier base Synergy will aim to be
in the top 50 suppliers by increasing market share of existing services as well
as examining opportunities to expand into adjacent healthcare support services.
People
The last year has been challenging with the integration of HCSS together with
setting new standards in quality and service for our customers. This year will
see the opening of a new training college for the Group, which will include a
highly specialised programme for the Surgical business. This additional
investment in training and education is a commitment by the Board to the ongoing
development of the team and recognition of the value that is created by our
highly motivated employees.
R M Steeves
Chief Executive
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the 52 weeks ended 30 March 2003
Continuing pre Discontinued, 2003 2002
non-recurring non-recurring
costs and asset costs and asset
impairment impairment Total Total
#'000 #'000 #'000 #'000
Turnover
Continuing operations 14,230 - 14,230 12,261
Acquisitions 12,360 - 12,360 -
Discontinued operations - 521 521 389
26,590 521 27,111 12,650
Cost of sales (17,665) (588) (18,253) (8,520)
Gross profit/(loss) 8,925 (67) 8,858 4,130
Net administrative expenses (5,722) (68) (5,790) (2,582)
Non-recurring costs - (252) (252) -
Goodwill (249) - (249) (56)
Total net administrative (5,971) (320) (6,291) (2,638)
expenses
Continuing operations 1,898 (252) 1,646 1,565
Acquisitions 1,056 - 1,056 -
Discontinued operations - (135) (135) (73)
Operating profit/(loss) 2,954 (387) 2,567 1,492
Loss on closure of
discontinued operations - (255) (255) -
Profit/(loss) on ordinary
activities
before interest 2,954 (642) 2,312 1,492
Net interest 32 (35)
Profit on ordinary activities
before taxation 2,344 1,457
Taxation on profit on ordinary
activities (751) (470)
Profit for the financial year 1,593 987
Dividends (639) (709)
Retained profit for the year 954 278
Earnings per ordinary share
Basic 7.42p 7.42p
Diluted 7.11p 7.07p
Adjusted basic 9.98p 7.85p
Adjusted diluted 9.57p 7.48p
There were no recognised gains and losses other than the profit for the
financial year.
CONSOLIDATED BALANCE SHEET
At 30 March 2003
2003 2002
#'000 #'000 #'000 #'000
Fixed assets
Intangible assets 4,989 864
Tangible assets 17,175 7,851
22,164 8,715
Current assets
Stocks 1,252 358
Debtors 3,839 2,469
Cash at bank and in hand 6,653 5,360
11,744 8,187
Creditors: amounts falling due
within one year (7,949) (4,535)
Net current assets 3,795 3,652
Total assets less current liabilities 25,959 12,367
Creditors: amounts falling due
after more than one year (1,422) (384)
Provisions for liabilities and charges (644) (334)
23,893 11,649
Capital and reserves
Called up share capital 138 101
Share premium account 21,061 9,808
Merger reserve 430 430
Profit and loss account 2,264 1,310
Shareholders' funds 23,893 11,649
CONSOLIDATED CASH FLOW STATEMENT
For the 52 weeks ended 30 March 2003
as restated
2003 2002
#'000 #'000
Net cash inflow from operating activities 6,314 3,079
Returns on investments and servicing of finance
Interest received 118 132
Interest paid (8) (96)
Finance lease interest paid (78) (71)
Net cash inflow/(outflow) from returns on investments
and
servicing of finance 32 (35)
Taxation (340) (339)
Capital expenditure and financial investment
Purchase of tangible fixed assets (4,241) (3,223)
Sale of tangible fixed assets 8 21
Net cash outflow from capital expenditure
and financial investment (4,233) (3,202)
Acquisitions
Acquisition of business (10,929) -
Equity dividends paid (456) (450)
Management of liquid resources
Sale/(purchase) of short term deposits 750 (5,250)
Net cash inflow/(outflow) from management of
liquid resources 750 (5,250)
Financing
Issue of ordinary share capital 12,080 9,333
Issue costs (790) (666)
Repayment of borrowing - (1,892)
Capital element of finance lease rentals (385) (263)
Net cash inflow from financing 10,905 6,512
Increase in cash 2,043 315
NOTES
1 Basis of preparation
The Preliminary announcement has been prepared in accordance with applicable
accounting standards and under the historical cost convention.
The principal accounting policies of the Group are set out in the Group's 2002
annual report and financial statements. The policies in this preliminary
announcement have remained unchanged from the 2002 financial statements, expect
that the policy in respect of cash and liquid resources has changed. Cash at
bank and in hand includes cash in hand, deposits repayable on demand, and short
term deposits. To the extent that these short term deposits mature after one
working day from the balance sheet date, they are included as liquid resources
in the cash flow statement. In this respect, the directors have revised their
previous definition of liquid resources and the comparative cash flow statement
has been restated accordingly, and now complies with Financial Reporting
Standard Number 1. The effect of this is to restate #5,250,000 from cash to
liquid resources in the 2002 cash flow statement.
2 EXCEPTIONAL ITEM
The exceptional loss on closure of discontinued operations, stated after
operating profit, relates to an impairment loss on the write-down of the
tangible fixed assets within the Environment of business.
3 DIVIDENDS
Equity dividends: 2003 2002
#'000 #'000
Ordinary shares - special dividend (2002:3.4p) - 320
Ordinary shares - interim dividend of 0.9p per share paid (2002:0.8p) 197 130
Ordinary shares - proposed final dividend of 2p per share (2002:1.6p) 442 259
639 709
4 earnings per share
2003 2002
#'000 #'000
Basic and diluted earnings per share
Profit for the financial year 1,593 987
Number Number
Weighted average number of ordinary shares in issue during the year 21,482,355 13,298,858
Basic earnings per share 7.42p 7.42p
Diluted earnings per share 7.11p 7.07p
Number Number
Reconciliation of average number of ordinary shares used for
basic and diluted earnings per share
Weighted average number of ordinary shares used for basic earnings per share 21,482,355 13,298,858
Weighted average number of shares under option 928,491 661,038
Weighted average number of ordinary shares used for diluted earnings per share 22,410,846 13,959,896
2003 2002
#'000 #'000
Adjusted earnings per share
Operating profit 2,567 1,492
Non-recurring costs 252 -
Goodwill 249 56
Adjusted operating profit 3,068 1,548
Net interest 32 (35)
Adjusted profit on ordinary activities before taxation 3,100 1,513
Taxation on adjusted profit on ordinary activities (956) (470)
Adjusted profit for the financial period 2,144 1,043
Adjusted basic earnings per share 9.98p 7.85p
Adjusted diluted earnings per share 9.57p 7.48p
5 Net cash inflow from operating activities
2003 2002
#'000 #'000
Operating profit 2,567 1,492
Depreciation 2,698 1,836
Loss on sale of tangible fixed assets 20 4
Amortisation of goodwill 249 56
Increase in stocks (282) (133)
Decrease/(increase) in debtors 195 (1,235)
Increase in creditors 867 1,059
Net cash inflow from operating activities 6,314 3,079
6 Reconciliation of net cash flow to movement in net funds
2003 2002
as restated
#'000 #'000
Increase in cash in the year 2,043 315
Cash outflow from financing - 1,892
Cash outflow from finance leases 385 263
Cash (inflow)/outflow from liquid resources (750) 5,250
Change in net funds resulting from cash flows 1,678 7,720
Inception of finance leases (1,640) (86)
Movement in net funds in the year 38 7,634
Net funds at 1 April 2002 4,748 (2,886)
Net funds at 30 March 2003 4,786 4,748
7 The financial information set out in this preliminary
announcement does not constitute statutory accounts as defined in section 240 of
the Companies Act 1985
The financial information has been extracted from the Group's 2003 statutory
financial statements upon which the auditor's opinion is unqualified and does
not include any statement under section 237 of the Companies Act 1985.
8 The financial statements for the year ended 30 March 2003 will be
posted to shareholders on 17 June 2003, and will be delivered to the Registrar
of Companies following the Company's Annual General Meeting.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UOSKROORNRAR
1 Year Synergy Chart |
1 Month Synergy Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
