Synergy Health profit rises as U.S. expansion pays off

(Reuters) - Synergy Health Plc , which provides support services to the healthcare industry, reported a 12 percent rise in adjusted first-half profit, helped by bolt-on acquisitions and its expansion in the United States.

The company, which sterilises surgical gowns and instruments and provides laboratory services to hospitals and surgery centres, also said that negotiations with a large U.S. hospital for an outsourcing contract were at an advanced stage.

Adjusted profit before tax rose to 26 million pounds ($42 million) in the quarter ended September 29 from 23.4 million pounds a year earlier.

Revenue rose 12 percent to 192.1 million pounds. Revenue from the Americas region jumped 88 percent to 41.4 million pounds.

"The progression of opportunities in the United States and in Asia supports our ability to grow and develop our Hospital Sterilisation Services business in these regions, which I believe will be a catalyst to future strong organic growth," Chief Executive Richard Steeves said in a statement.

However, Synergy said its Dutch linen business was hurting growth and the company was reviewing strategic options to rebuild the business.

"The Dutch linen market remains volatile with inconsistent if not opportunistic behaviour from our main competitors," Steeves added.

Synergy Health also said it was midway through a review of options to drive faster growth by either broadening its markets with new services or with an entry into new markets.

Shares in the company closed at 1062 pence on the London Stock Exchange on Monday.

($1 = 0.6261 British pounds)

(Reporting by Roshni Menon in Bangalore; Editing by Supriya Kurane)