Good  morning!! It's Paul here, reporting from the Derby Conference Centre, at the Mello 2018 investor show!

Graham and I have been cajoled into doing a SCVR Live, on stage here at 9am, today and tomorrow. However, I thought we need to look after everyone else that isn't at Derby too. So here are some comments on this morning's RNS.

It's now 7:07, and guess what? The RNS feed is broken again. Great, just great! In that case, I'll nip downstairs and have a Full English, and hopefully the news feed will be working again soon.

Very nice that was too. OK, the news feed is working now. Some quick comments before I go on stage;


Synectics (LON:SNX)

Share price: 200p (up 5.3% at 08:24)
No. shares: 17.8m
Market cap: £35.6m

Trading update

Synectics plc (AIM: SNX), a leader in the design, integration, control and management of advanced surveillance technology and networked security systems, is holding its Annual General Meeting at 11.00am today, at which the Chairman, David Coghlan, will make the following statement.


The company has a 30 November financial year end.

The first paragraph sounds ominous - note the word I have bolded;

"In the first four months of this financial year, the trends we see in the various end market sectors Synectics serves have remained largely as set out in last year's Annual Report ...

This sounds like the company is warming us up for a profit warning.

More detail is given, of different sectors, some up, some down. The suspense is lifted with a reassuring final sentence;

"Based on Synectics' current order book and pipeline of anticipated new business, the Board expects that the Company will announce full year results in line with market expectations."


Stockopedia is showing consensus forecast of 14.6p EPS, so at the current share price of 200p, I make that a PER of 13.7, which sounds about right for this type of business. The business model here suffers from tending to have lumpy contracts, so it should really be on a below-average PER rating.

My opinion - this share doesn't interest me, as it's difficult to see much upside, unless the order book substantially increases. That could happen, as historically the company did well from the oil & gas sector, which is now showing signs of life…

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