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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Synergy Health - Order book remains strong

January 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SYR
  • Price:
  • 652p
This time last year Synergy Health was reeling from a nasty profit warning but recent interims were excellent with pretax profit rising 20% to £14.9m and eps increasing 17% to 20.6p. The linen management side increased revenues by 3% to £88.2m with good progress in the Netherlands offset by a deliberate move to wind down c. £20m of non-core revenue. The UK side of the business enjoyed a 300 basis point improvement in operating margins as previous problems of rising input costs were reversed and bidding for new work was stopped. The decontamination division, which supplies procedural packs for hospital operations and sterilises surgical instruments, increased sales 14% to nearly £24m. While the Department of Health's Nat ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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