Corrected: UK's Synectics H1 revenue falls on absence of large gaming contract
CORRECTED-UK's Synectics H1 revenue falls on absence of large gaming contract Corrects adjusted EBIT to GBP 80 thousand, from GBP 1 million, in table
Overview
UK security solutions firm's H1 revenue fell 37% yr/yr due to absence of large gaming contract
Adjusted EBITDA declined yr/yr, impacted by lower sales and delayed Energy sector orders
Company expects FY outlook remains achievable but notes uncertainty in Energy project timing
Outlook
Synectics expects FY26 adjusted EBITDA of £3.7 mln to £4.1 mln
Company says FY26 outcome depends on timing and conversion of Energy sector opportunities
Synectics expects accelerated growth from FY27 as new strategy takes effect
Result Drivers
ABSENCE OF GAMING CONTRACT - Co said H1 revenue decline was mainly due to last year's large, non-repeating gaming contract not recurring in H1 2026
ENERGY SECTOR DELAYS - Co said conflict in the Middle East delayed Energy sector orders and revenue recognition
IMPROVED MARGINS - Co attributed higher gross margin to operational efficiency, product mix, and completion of lower margin projects
Company press release: ID:nRSR0311Ra
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 22.24 mln |
|
H1 Adjusted EBIT |
| GBP 80,000 |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Synectics PLC is GBp310.00, about 49.4% above its August 17 closing price of GBp207.50
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)