Sterilisation and infection control specialist Synergy Healthcare sounds bullish after lifting interim profits 70 per cent to £11 million pre tax.

The acquisitive Derby-based concern increased turnover 52 per cent to £102 million in the six months to September, helped by a contribution from commercial medical sterilisation group Isotron, which it bought in March for £181 million in shares and cash. Underlying turnover grew a more modest 16.7 per cent, while earnings increased 27.3 per cent to 16.53p a share and the interim dividend is up 25 per cent to 3.5p a share.

AIM-quoted Synergy says sales rose 19.4 per cent in patient care, 14.2 per cent in its surgical division, which won several big UK contracts, and 7.4 per cent on the commercial side. The company's forward order book rose by £65 million to £765 million and three Chinese hospitals have signed a memorandum of understanding to outsource sterilisation to Synergy.

Yesterday, Synergy announced the £24.4 million acquisition of Vernon-Carus, a major supplier of infection control and decontamination services to the National Health Service that made £200,000 in the year to April. Synergy, which ended September with cash down from £7.9 million to £4.3 million, saw net debt increase from £2 million to £110.7 million during the first half-year.

Chief executive Dr. Richard Steeves says the second half has 'started well across all our markets', citing progress internationally, especially in China, and an encouraging take-up of patient screening at several NHS hospitals. 'With the control of infection becoming increasingly important in all aspects of healthcare,’ he adds, ‘there is strong momentum for growth in each of the group's businesses.’

The market is taking a more cautious view. Synergy shares, which rose from 364p in 2005 to 898p last July, are now 688.5p, down 11p this morning, valuing the company at £365 million.

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Synergy Healthcare	LSE	£221.44m	411.25p	0.00p
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