(Adds analyst comment, details, background, share movement)
June 4 Synergy Health Plc, a provider of
sterilising services and pathology tests, reported a 13 percent
rise in full-year profit as it saw an uptick in contracts from
the United States.
The company, which sterilises surgical gowns and surgical
instruments and provides laboratory services to hospitals and
surgery centres, said it has won new contracts during the
period, bringing its global bid book to over 100 million pounds
($167 million) per year.
"We begin the new fiscal year implementing 48 million pounds
of new work over the next 18 months, which will steadily raise
Synergy's growth rate," the company said in a statement on
Synergy said pretax profit rose to 42.9 million pounds in
the year ended March 31, from 38 million pounds a year earlier.
Revenue grew by 5.3 percent to 380.5 million pounds.
Despite austerity measures in place in the UK and Ireland
holding back spending in the countries' national health services
programmes, a push into overseas markets, including the United
States and China, helped Synergy Health clock the growth.
Given its strong order book, the company is well positioned
to continue strong earnings growth in the coming years, said
Investec analyst Nicholas Keher and reiterated his "buy" rating
on the stock.
Out of the eight analysts covering the company, four had a
"strong buy" rating on the stock and one rated it as a "buy",
Thomson Reuters data from June 3 showed.
The FTSE-250 company raised its final dividend by 10.9
percent to 14.20 pence per share.
Shares in the Wiltshire, England-headquartered company were
down 1 percent at 1304 pence at 0731 GMT in thin-volume trade on
the London Stock Exchange. The broader market was down 0.05
($1 = 0.5974 British Pounds)
(Reporting by Esha Vaish in Bangalore; Editing by Gopakumar