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RNS Number : 5532F Synectics PLC 11 July 2023
RNS 11 July 2023
Synectics plc
("Synectics" or the "Company" or the "Group")
Interim results for the six months ended 31 May 2023
Synectics plc (AIM: SNX), a leader in advanced security and surveillance
systems, reports its unaudited interim results for the six months ended 31 May
2023 ("H1 2023" or "the period").
Headlines(1)
· H1 2023 revenue 14% ahead of H1 2022 at £21.9 million (H1 2022: £19.2
million)
· Underlying operating profit increased by 61% to £0.8 million (H1 2022: £0.5
million)
· Underlying profit before tax up 62% to £0.7 million (H1 2022: £0.4 million)
· Order book as at 31 May 2023 strong at £28.4 million (31 May 2022: £24.5
million)
· Underlying earnings per share up 76% to 3.7p (H1 2022: 2.1p)
· Net cash as at 31 May 2023 solid at £4.0 million (31 May 2022: £4.2 million)
· Results were underpinned by a strong oil & gas market with progress in
other markets being more modest
· Based on the Company's strong order book, the Board expects significantly
improved trading in the second half of this financial year
· The Board's expectations for the year to 30 November 2023 remain unchanged
Commenting on the results, Paul Webb, Chief Executive of Synectics, said:
"Synectics has now had four consecutive periods of progress in revenue and
profits and is confident of delivering further progress in H2 2023. Operating
in markets that are strong and recovering, the Company has solid long-term
growth potential, from a sound platform.
The Board expects the Company's results for the year ending 30 November 2023
to be in line with market expectations, despite being weighted to the
seasonally stronger H2."
Craig Wilson, recently appointed Chair of Synectics, added:
"After conducting a comprehensive business review, it is evident that
Synectics possesses excellent technology in thriving global markets, including
oil & gas, gaming, and public safety, which are experiencing renewed
growth. With a robust financial position and a clear strategic direction, it
is now all about execution."
(1) All income statement comparatives set out in this announcement reflect
continuing operations unless otherwise stated.
For further information, please contact:
Synectics plc Tel: +44 (0) 114 280 2828
Paul Webb, Chief Executive Officer
Amanda Larnder, Chief Financial Officer
email: info@synecticsplc.com (mailto:info@synecticsplc.com) www.synecticsplc.com
Shore Capital Tel: +44 (0) 20 7408 4050
Tom Griffiths / David Coaten
Media enquiries:
Intelligent Conversation Tel: +44 (0) 161 694 3979
Claire Evans
email: claire@weareic.com (mailto:claire@weareic.com)
About Synectics
Synectics plc (AIM: SNX) is a leader in advanced security and surveillance
systems that help protect people, property, communities, and assets around the
world.
The Company's expertise is in providing solutions for specific markets where
security and surveillance are critical to operations. These include gaming,
oil and gas, public space, transportation, and critical infrastructure.
Synectics has deep industry experience in these markets and works closely with
customers to deliver solutions that are tailored to meet their needs.
Technical excellence, combined with decades of experience and long-standing
customer relationships, provides fundamental differentiation from mainstream
suppliers and makes the Company a stand out in its field.
Find out more at www.synecticsplc.com
(https://url.avanan.click/v2/___http:/www.synecticsplc.com/___.YXAxZTpzaG9yZWNhcDphOm86OWM3ZjFiYzMxY2QwYmM0Mzg2OWY4M2IxMTRhMTQzNDM6NjpkNmZlOmIwMmUxMzM1NzM2ZGFjZjBlMGQ4Yzk3OGZjMjM3MWFhYmZhYjAxMWQyNzA4ZGQyOGE3OTJjYWZjMTM1ZDc5Yzc6cDpU)
Chief Executive's Statement
Overview
The Company's performance in H1 2023 was in line with the Board's
expectations, continuing the good progress made period-on-period over the last
two years.
Progress was underpinned by a strong performance in the global oil & gas
market, which is expected to continue. There was some recovery in the Asian
gaming market whilst progress in other markets was more modest, with further
improvement expected.
The Company's order book at 31 May 2023 was materially ahead of the same date
last year, with a significant proportion expected to trade in the second half
of the year ("H2 2023").
Order intake since the period end has been strong with around £5.0 million of
new orders booked in June 2023 alone, including the further contract for Saudi
Aramco which was announced by the Company on 4 July 2023.
This order book, and the pipeline of anticipated business, supports the
Board's expectations of significantly improved trading in H2 2023.
The Board expects the Company's results for the year ending 30 November 2023
("FY 2023") to be in line with market expectations, despite being weighted to
the seasonally stronger H2.
Results
Synectics' revenues for the period were 14 per cent. ahead of H1 2022 at
£21.9 million (2022: £19.2 million) driven mainly by growth in Synectic
Systems, particularly in the global oil & gas market.
The Group recorded an increased underlying operating profit for H1 2023 of
£0.8 million (H1 2022: £0.5 million) which was negatively impacted by £0.2
million of foreign exchange losses. Underlying profit before tax was up 61
per cent. at £0.7 million (H1 2022: £0.4 million). Underlying earnings per
share were 76 per cent. ahead at 3.7p (H1 2022: 2.1p).
The Company's balance sheet remains solid, with net cash as at 31 May 2022 of
£4.0 million (31 May 2022: £4.2 million), following planned and well managed
increased levels of working capital. The Company has no bank debt and
available undrawn facilities of £3.0 million.
The consolidated firm order book as at 31 May 2022 was strong at £28.4
million (31 May 2022: £24.5 million), with almost two-thirds of it expected
to trade in H2 2023 - well ahead of the same point last year, with the balance
being largely long-term service and support contracts.
More details on these results are set out below in the Business Review
section.
Dividend
The Board has previously set out its intention to recommend only a final
dividend, therefore no interim dividend is being declared.
Strategic Review
Synectics' primary focus includes oil & gas, gaming, and public safety
markets. These markets have stringent functional and regulatory requirements,
which the Company's advanced technology effectively fulfils. Both the global
scale and recent return to growth in these markets reinforces the Board's view
that the Company can deliver strong revenue growth by expanding sales coverage
in markets it already knows well. Furthermore, we anticipate that the Company
will benefit from heightened public attention towards supply chain security
risks within our targeted markets.
The Company acknowledges the immense potential for sales growth through
collaborations with local specialist partners and integrators in each market.
Consequently, it is actively engaged in developing robust partner sales
channels across various territories and markets. The partners' deep
understanding of local dynamics plays a pivotal role in efficiently and
swiftly expanding Synectics' sales coverage, eliminating the need for
establishing a direct sales approach in every new geography.
A crucial element of the Company's expansion strategy involves enhancing the
ease of deploying its core technology, Synergy, for its partners. The Company
has also made significant investment to facilitate the product's deployment in
cloud environments such as Microsoft Azure. Additionally, it has integrated
further artificial intelligence capabilities to provide real time alerts,
ensuring operators are immediately notified of potentially suspicious events.
Our long-standing customer relationships contribute significantly to the
Group's revenue through repeat business, encompassing upgrades, expansions,
and ongoing support. However, it is important for the Company to increase the
level of contracted recurring revenue through long-term support contracts,
software subscriptions, and licenses. This remains a crucial priority for the
Company.
The Group recognises the importance of engagement with all of its
stakeholders. A recently re-launched website and increasing levels of social
media activity are part of this, with further activities planned over H2 2023.
Business Review
Synectic Systems
Synectic Systems provides specialist surveillance systems, based on its own
proprietary technology, to global end customers with large-scale highly
complex security requirements, particularly for gaming, oil & gas, public
space, transportation, and critical infrastructure applications.
£000 Unaudited Six months ended Unaudited Audited
31 May Six months ended Year ended
2023 31 May 30 Nov
2022 2022
Revenue 13,847 11,816 24,201
Gross margin(2) 49.4% 50.4% 50.6%
Operating profit(2) 1,367 722 1,882
Operating margin(2) 9.9% 6.1% 7.8%
( )
(1) Before Group central costs.
Revenues in H1 2023 were over 17 per cent. ahead of H1 2022, driven primarily
by a strong performance in the global oil & gas market, which is expected
to continue.
In the gaming sector globally, whilst interest and activity levels continue to
increase, expected projects and orders are still experiencing delays.
Performance in other markets continued at similar levels to the previous year.
The current pipeline of oil & gas opportunities is strong and extends well
into 2024. The Company has increased supply chain and production capacity in
line with the expected increased demand later this year and beyond, and the
Company's manufacturing output of specialist camera stations in H2 2023 is
expected to be at a level not seen since 2014.
In addition to the significant contract win for Saudi Aramco, which it
announced on 13 April 2023, the Company has secured a further related contract
for its specialist COEX(TM) camera stations, as announced on 4 July 2023. A
significant proportion of this additional contract is expected to be delivered
by the end of this financial year, with the balance to follow in H1 2024.
Gross margins in the period remained strong, despite ongoing cost pressures in
the supply chain. There was no material impact from supply chain challenges on
either customer delivery or margins, with longer lead times in most cases
having already been factored into project schedules.
As outlined above, increasing the level of contracted recurring revenue is an
important priority for the Company, which continued to increase during the
period to £2.0 million (H1 2022: £1.7 million) with the order book of
long-term contracts increasing materially to £10.5 million (31 May 2022:
£8.9 million).
Europe, Middle East & Africa (Revenue £6.8 million (H1 2022: £5.1
million))
Revenues in EMEA were ahead of H1 2022 due to a strong performance in the oil
& gas market, with progress in other markets relatively flat.
Work continued with the City of London Police on their Safe City programme,
and with the West Midlands Police. Both projects provide powerful references
for Synectics' position at the forefront of operational control systems for
Safe City programmes. Significant new awards in the region include:
· The Saudi Aramco contracts referred to above, which will deliver
revenue in H2 2023; and
· A large contract for a multi-site surveillance system for
Sheffield NHS Trust, which has generated significant interest from this
sector.
Asia Pacific (Revenue £4.9 million (H1 2022: £2.7 million))
A strong oil & gas market and continued recovery in the gaming sector
drove solid revenue growth in the region.
Whilst casino operations in the region have now largely returned to normal,
expected projects across the sector have still been experiencing delays. The
Company announced the award of a large casino resort project in the
Philippines on 28 April 2023, which was later than had been expected. The
Board expects further progress in H2 2023 and beyond. Recent contract wins of
note include: -
· A casino contract for Solaire in the Philippines, which will
deliver revenue in H2 2023; and
· Major expansion to an existing oil and gas project in Australia.
North America (Revenue £2.2 million (H1 2022: £4.0 million))
Since the effective re-opening of the gaming market in the region last year,
the Company's efforts have necessarily been focused on supporting existing
customers and partners with services and upgrades as their operations have
returned to normal, and the level of support contract renewal has been good.
Oil & gas performance in the region was solid, with H1 2022's results
including a large refinery project that was not repeated.
The disappointing progress in the region regarding new casino projects was
partly due to a continued delay in the expected award of some projects, but
also as the Company's strategy of developing new business closely with
partners is only now getting off the ground.
The Board expects progress to be made in H2 2023, and contracts for two new
casino projects have been received since the period end. A number of casino
projects in the pipeline of expected orders are now not slated to generate
revenue for the Company until early in 2024. Additionally: -
· A replacement system for an existing long-term casino customer
and a project for a new customer awarded since the period end will deliver H2
2023 revenue in excess of $1.0 million; and
· A long-term support agreement with an existing major corporate
account covering multiple sites will be worth around $1.0 million over the
next five years.
Synectics Security
Synectics Security is a UK-focused provider of electronic security systems for
critical and regulated environments. Its main markets are in public space,
transport, high security, and infrastructure projects. Its capabilities
include UK Government security-cleared personnel and facilities, with
nationwide project delivery, service and support. Synectics Security delivers
products and technology both from Synectic Systems, and other partners.
£000 Unaudited Unaudited Audited
Six months ended Six months ended Year ended
31 May 31 May 30 Nov
2023 2022 2022
Revenue 8,676 8,203 16,595
Gross margin(2) 26.2% 28.6% 26.4%
Operating profit(2) 429 523 1,164
Operating margin(2) 4.9% 6.4% 7.0%
( )
(2) Before Group central costs.
Synectics Security delivered a modest increase in revenues in H1 2023, mainly
from the unwinding of delays due to supply chain constraints affecting
on-vehicle business late in FY 2022. This was offset by slightly lower gross
margins realised in closing out some delayed projects. Contracted recurring
revenue in the period was £1.6 million (H1 2022: £1.7 million).
Work to re-position the business beyond its traditional heartland in public
space into more complex, critical and highly regulated security environments
is continuing: -
· A strategically important maintenance contract with the City of
London Police that consolidates Synectics' position as preferred supplier;
· Security upgrade projects at multiple UK sites for a major
critical national infrastructure customer, worth more than £1.0 million in FY
2023; and
· New recording systems for Stagecoach London Buses, fully compliant
with new TfL requirements.
Technology Development
As outlined above, investment in the Company's intellectual property and
technology base remains an important strategic priority for the Board.
Expenditure on technology development during H1 2023 was flat at £1.6 million
(H1 2022: £1.6 million) of which £0.4 million (H1 2022: £0.2 million) was
capitalised and the remainder expensed to the income statement. In addition,
£0.4 million (H1 2022: £0.5 million) of previously capitalised development
was amortised in the period. These figures are all included within the
results of Synectic Systems set out above.
Technology development expenditure, which includes investment in product
management, documentation, training resources and quality assurance, along
with hardware and software development, is expected to increase in H2 2023. A
successful recruitment drive in the period has enhanced development
capabilities, bringing in exciting new talent and building on the proven,
world-class expertise of the core team. This is continuing with momentum into
H2 2023, in line with the Company's investment plans.
This continued investment supports the future-proofing of the Synergy software
platform with web-centric technology to enhance user experience and
capabilities "beyond the control room", and a suite of intelligent deployment
tools make systems less reliant on the Company's own experts to deploy and
support. Other future developments include modules that customers can utilise
on-demand via a recurring revenue model which are due to be launched early
next year. Immediate development priorities include:
· Enhanced cloud services, providing significant reporting and
dashboard improvements, allowing users to see data from numerous subsystems at
a glance;
· Further integrations to best-in class artificial intelligence
capabilities; and .
· New-generation COEX(TM) specialist camera stations for oil &
gas applications to include built-in AI technology that is market leading.
Summary and Outlook
The Company operates in markets that are strong and recovering, with solid
long-term growth potential. Synectics has deep experience and a clearly
defined position in these markets.
The fundamentals of the business are healthy, with a strong balance sheet that
provides a robust platform for future growth. The depth of customer
relationships, the calibre of people, and the quality of technical expertise
are the core pillars upon which Synectics is built.
Since its return to profit in H2 2021, the Company has now had four
consecutive periods of progress in revenue and profits and is confident of
delivering further progress in H2 2023.
The Company's consolidated order book is significantly ahead of that as at 30
November 2022, with a significant proportion expected to trade in H2 2023.
Order intake has continued strongly since the period end with around £5.0
million of new orders booked in June 2023 alone.
Based on the current order book and pipeline of anticipated business, the
Board expects the Company's results for the year ending 30 November 2023 to be
in line with market expectations, despite being weighted to the seasonally
stronger H2.
Paul Webb
Chief Executive
11 July 2023
Consolidated income statement
For the six months ended 31 May 2023
Continuing operations Notes Unaudited Unaudited
six months six months
ended ended
31 May 2023 31 May 2022
£000 £000
Revenue 3 21,851 19,159
Cost of sales (12,736) (10,862)
Gross profit 9,115 8,297
Operating expenses (8,351) (7,823)
Operating profit before non-underlying items 764 474
Non-underlying items 5 (87) -
Operating profit 677 474
Finance costs (46) (32)
Profit before tax 631 442
Income tax expense 6 (66) (80)
Profit for the period from continuing operations 565 362
Profit for the period from discontinued operations(3) 4 - 43
Profit attributable to equity holders of the Parent 565 405
Earnings per share from continuing operations 8
Basic 3.3 2.1p
Diluted 3.3 2.1p
Earnings per share from continuing and discontinued operations 8
Basic 3.3 2.4p
Diluted 3.3 2.4p
(3) Discontinued operations relates to the sale of SSS Management Services
Limited on 30 November 2022
Consolidated statement of comprehensive income
For the six months ended 31 May 2023
Continuing operations Unaudited Unaudited
six months six months
ended ended
31 May 2023 31 May 2022
£000 £000
Profit for the period from continuing operations 565 362
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations (8) 18
Losses on a hedge of a net investment taken to equity (13) (7)
(21) 11
Total comprehensive income from continuing operations
544 373
Total comprehensive income from discontinued operations
- 43
Total comprehensive income for the period attributable to equity holders of 544 416
the
Parent
Consolidated statement of financial position
As at 31 May 2023
Unaudited Unaudited 30 Nov
31 May 2023 31 May 2022 2022
£000 £000 £000
Non-current assets
Property, plant and equipment 4,359 4,464 4,598
Goodwill and intangible assets 20,801 21,389 20,776
Deferred tax assets 2,660 2,387 2,741
27,820 28,240 28,115
Current assets
Inventories 4,345 4,481 4,219
Trade and other receivables 9,688 10,586 9,090
Contract assets 6,917 6,701 6,317
Tax assets 5 - 425
Cash and cash equivalents 3,996 4,201 4,256
24,951 25,969 24,307
Total assets 52,771 54,209 52,422
Current liabilities
Trade and other payables (7,861) (10,961) (8,111)
Contract liabilities (2,477) (3,169) (1,875)
Lease liabilities (683) (494) (683)
Tax liabilities - (15) -
Provisions (783) (517) (796)
(11,804) (15,156) (11,465)
Non-current liabilities
Provisions (752) (1,037) (746)
Lease liabilities (1,901) (1,959) (2,137)
Deferred tax liabilities (1,072) (549) (1,072)
(3,725) (3,545) (3,955)
Total liabilities (15,529) (18,701) (15,420)
Net assets 37,242 35,508 37,002
Equity attributable to equity holders of the Parent
Called up share capital 3,559 3,559 3,559
Share premium account 16,043 16,043 16,043
Merger reserve 9,971 9,971 9,971
Other reserves (1,436) (1,436) (1,436)
Currency translation reserve 919 726 940
Retained earnings 8,186 6,645 7,925
Total equity 37,242 35,508 37,002
Consolidated statement of changes in equity
For the six months ended 31 May 2023
Called up Share Currency
share premium Merger Other translation Retained Total
capital account reserve reserves reserve earnings £000
£000 £000 £000 £000 £000 £000
At 1 December 2021 3,559 16,043 9,971 (1,436) 715 6,492 35,344
Profit for the period - - - - - 405 405
Other comprehensive income
Currency translation adjustment - - - - 11 - 11
Total other comprehensive income - - - - 11 - 11
Total comprehensive income 11 405 416
Dividends paid - - - - - (253) (253)
Credit in relation to share-based payments - - - - - 1 1
At 31 May 2022 3,559 16,043 9,971 (1,436) 726 6,645 35,508
Profit for the period - - - - - 1,060 1,060
Other comprehensive income
Currency translation adjustment - - - - 276 - 276
Tax relating to components of other comprehensive income - - - - (62) 172 110
Total other comprehensive income - - - - 214 172 386
Total comprehensive income - - - - 214 1,232 1,446
Credit in relation to share-based payments - - - - - 48 48
At 30 November 2022 3,559 16,043 9,971 (1,436) 940 7,925 37,002
Profit for the period - - - - - 565 565
Other comprehensive income
Currency translation adjustment - - - - (21) - (21)
Total other comprehensive income - - - - (21) - (21)
Total comprehensive income - - - - (21) 565 544
Dividends paid - - - - - (338) (338)
Credit in relation to share-based payments - - - - - 34 34
At 31 May 2023 3,559 16,043 9,971 (1,436) 919 8,186 37,242
Consolidated cash flow statement
For the six months ended 31 May 2023
Unaudited Unaudited
six months six months
ended ended
31 May 2023 31 May 2022
£000 £000
Cash flows from operating activities
Profit from continuing operations 565 362
Profit from discontinued operations - 43
Profit for the period 565 405
Income tax expense 66 80
Finance costs 46 40
Depreciation and amortisation charge 917 1,105
Loss on disposal of non-current assets - 22
Net foreign exchange differences 156 (121)
Net movement in provisions 4 48
Share-based payment charge 34 1
Operating cash flows before movement in working capital 1,788 1,580
Increase in inventories (126) (540)
Increase in trade, other and contract receivables (1,302) (689)
Increase in trade, other and contract payables 420 52
Cash generated from operations 780 403
Tax received 418 28
Net cash from operating activities 1,198 431
Cash flows from investing activities
Purchase of property, plant and equipment (146) (51)
Capitalised development costs (430) (160)
Purchased software (11) (19)
Net cash used in investing activities (587) (230)
Cash flows from financing activities
Lease payments (431) (426)
Dividends paid (338) (253)
Net cash used in financing activities (769) (679)
Net decrease in cash and cash equivalents (158) (478)
Effect of exchange rate changes on cash (102) 38
Cash and cash equivalents at the beginning of the period 4,256 4,641
Cash and cash equivalents at the end of the period 3,996 4,201
Notes
For the six months ended 31 May 2023
1 General information
These condensed consolidated interim financial statements were approved by the
Board of Directors on 10 July 2023.
2 Basis of preparation
These consolidated interim financial statements of the Group are for the six
months ended 31 May 2023.
These interim financial statements do not include all the information and
disclosures normally included in the annual financial statements. Accordingly,
these interim financial statements should be read in conjunction with the
Group's annual financial statements for the year ended 30 November 2022.
These interim financial statements for the six months to 31 May 2023 have not
been audited or reviewed by an auditor pursuant to the Auditing Practices
Board guidance on Review of Interim Financial Information.
The condensed consolidated interim financial statements have been prepared on
the basis of the accounting policies expected to be adopted by the Group for
the year ending 30 November 2023. The Group did not have to change its
accounting policies as a result of adopting new standards.
AIM-listed companies are not required to comply with IAS 34 'Interim Financial
Reporting' and accordingly the Company has taken advantage of this exemption.
Discontinued operations
Discontinued operations relate to operations of the Group which have been
disposed of in the previous year and where operations and cash flows could be
clearly distinguished from the rest of the Group. The net results of
discontinued operations are presented separately in the consolidated income
statement (and the restated comparatives).
Notes to the consolidated statement of financial position are presented on a
total group basis and, as a result, income statement and cash flow movements
included in these notes for the comparative period may not reconcile to those
presented in the consolidated income statement and the consolidated cash flow
statement.
3 Segmental analysis
Revenue by operating segment
Revenue - continuing operations Unaudited Unaudited
six months six months
ended ended
31 May 2023 31 May 2022
£000 £000
Systems 13,846 11,816
Security 8,676 8,203
Total segmental revenue 22,522 20,019
Reconciliation to consolidated revenue:
Intra-Group sales (671) (860)
21,851 19,159
Underlying operating result by operating segment
Underlying operating profit - continuing operations Unaudited Unaudited
six months six months
ended ended
31 May 2023 31 May 2022
£000 £000
Systems 1,367 722
Security 429 524
Total segmental underlying operating profit 1,796 1,246
Reconciliation to consolidated underlying operating profit:
Central costs (1,032) (772)
764 474
Underlying operating profit is reconciled to total operating profit as
follows:
Continuing operations Unaudited Unaudited
six months six months
ended ended
31 May 2023 31 May 2022
£000 £000
Underlying operating profit 764 474
Non-underlying items (87) -
677 474
4 Discontinued operations
On 11 November 2022, the Group announced that it had reached an agreement to
sell SSS Management Services Limited ('SSS'), which was previously part of the
Group's Security division. On 30 November 2022 the transaction was
subsequently completed for £100,000 cash and further contingent consideration
of £100,000.
Under IFRS 5 Non-current assets held for sale and discontinued operations, SSS
was disclosed as a discontinued operation in the Group's annual financial
statements for the year ended 30 November 2022. SSS is no longer presented
within the segmental note and its result for the six months ended 31 May 2022
is instead presented below.
Results from discontinued operations:
Unaudited Unaudited
six months six months
ended ended
31 May 2023 31 May 2022
£000 £000
Revenue - 3,601
Cost of sales - (2,899)
Gross profit - 702
Operating expenses - (651)
Operating profit - 51
Finance costs - (8)
Profit before tax - 43
Income tax expense - -
Profit attributable to discontinued operations - 43
5 Non-underlying items
Unaudited Unaudited
six months six months
ended ended
31 May 2023 31 May 2022
£000 £000
Costs associated with legal matters 42 -
Costs associated with the buy-out of the defined benefit pension scheme 45 -
87 -
6 Taxation
The tax expense of £66,000 (2022: £80,000) for the period is based on the
estimated rate of corporation tax that is likely to be effective for the year
ending 30 November 2023.
7 Dividends
The Board does not propose to pay an interim dividend (2022: £nil).
8 Earnings per share
Earnings per share are as follows:
Unaudited Unaudited Unaudited
six months six months six months
ended ended ended
31 May 2023 31 May 2022 31 May 2022
Pence per share Pence per share (continuing operations) Pence per share
(Total)
Basic earnings per share 3.3 2.1 2.4
Diluted earnings per share 3.3 2.1 2.4
Underlying basic earnings per share 3.7 2.1 2.4
Underlying diluted earnings per share 3.7 2.1 2.4
The calculations of basic and underlying earnings per share are based upon:
Unaudited Unaudited Unaudited
six months six months six months
ended ended ended
31 May 2023 31 May 2022 Continuing operations 31 May 2022 Total
£000 £000
£000
Earnings for basic and diluted earnings per share 565 362 405
Non-underlying items 87 - -
Tax thereon (20) - -
Earnings for underlying basic and diluted earnings per share 632 362 405
Unaudited Unaudited
six months six months
ended ended
31 May 2023 31 May 2022
000 000
Weighted average number of ordinary shares - basic calculation 16,889 16,886
Dilutive potential ordinary shares arising from share options 1 -
Weighted average number of ordinary shares - diluted calculation 16,890 16,886
9 Availability of results
Copies of this statement are available on the Group's website
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