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Synergy Health sees boost from further NHS outsourcing

5 Nov 2010 12:00 AM | Anonymous

* Sees NHS tenders, contracts towards end of Q4

* Says on track to meet own FY view

* Ups interim dividend by 22.4 pct to 6p

* Grows forward order book by 5 pct (Adds details)

Britain's Synergy Health posted a 22 percent rise in first-half adjusted pretax profit, helped by higher margins, and said it expected further outsourcing by the National Health Service to boost its business.

The provider of sterilisation services to hospitals raised its interim dividend to 6 pence from 4.90 pence and said forward order book grew by 5 percent to 890 million pounds ($1.44 billion).

"Our focus now is to convert the bid pipeline into further contract wins in the fourth quarter and into the next financial year," Chief Executive Richard Steeves said.

For the six months ended Sept. 26, adjusted pretax profit was 18.1 million pounds, compared with 14.9 million pounds a year ago.

Revenue fell 3 percent to 138.7 million pounds, but gross margins improved 2.1 percent, helped by winding down of non-core business.

The company's shares were flat since Synergy on Oct. 6 forecast first-half profit in line with its own view, compared with a 4 percent drop in the FTSE 350 Health Care Equipment & Services Index .FTNMX4530.

Synergy Health shares closed at 747.50 pence on Wednesday on the London Stock Exchange. ($1=.6201 Pound) (Reporting by Aditi Samajpati in Bangalore; Editing by Vinu Pilakkott)

Source: http://uk.finance.yahoo.com/news/update-1-synergy-health-sees-boost-from-further-nhs-outsourcing-targetukfocus-e4509c5b5921.html

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