REG - Synectics PLC - Half-year Report
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RNS Number : 0707Q Synectics PLC 08 July 2025
8 July 2025
Synectics plc
("Synectics", the "Company" or the "Group")
Interim results for the six months ended 31 May 2025
H1 2025 performance underpinned by solid order book and ongoing new business
momentum
Trading remains comfortably in line with FY 2025 market expectations(1)
Synectics plc (AIM: SNX), a leader in advanced security and surveillance
solutions, announces its unaudited interim results for the six months ended 31
May 2025 ("H1 2025" or the "Period").
Financial highlights
· Revenue increased by 35% to £35.5 million (H1 2024: £26.3
million)
· Underlying operating profit(2) up 48% to £3.3 million (H1 2024:
£2.2 million)
· Adjusted EBITDA(3) increased by 47% to £4.2 million (H1 2024: £2.8
million)
· Adjusted, diluted earnings per share(4) rose by 59% to 16.4 pence (H1
2024: 10.3 pence)
· Net cash at 31 May 2025 of £12.1 million with no bank debt(5) (31
May 2024: £6.4 million, 30 November 2024: £9.6 million)
· Order book at 31 May 2025 of £35.1 million (31 May 2024: £30.2
million, 30 November 2024: £38.5 million)
· Interim dividend increased to 2.2 pence per share (H1 2024: 2.0 pence
per share)
Operational highlights
· Solid customer demand, including several key contract wins:
o £2.0 million secured with West Midlands Police
o US$2.2 million with high-profile gaming resort in South-East Asia as well
as US$4.8 million contract extension
o £1.1 million pilot with Stagecoach, the UK's largest bus and coach
operator
o Strengthened long-standing partnership with PENN Entertainment, Inc,
having secured two further contracts in the US
o Two new customers gained in the Philippines, further expanding Synergy
Software deployment in the region
· Early steps taken to strengthen partner network and build regional
presence, including new senior appointments in the UAE and North America, and
for the partner programme
· Announcement of Paul Williams as Chief Financial Officer, effective
from 26 August 2025
Outlook
· Solid order book at 31 May 2025, for delivery across the remainder of
FY 2025 and into FY 2026
· Continued contract momentum across key sectors, underpinning
confidence in FY 2025
· Trading remains comfortably in line with FY 2025 market
expectations(1)
Commenting on the results, Amanda Larnder, Chief Executive Officer and Chief
Financial Officer, said:
"Synectics has delivered strong financial results for the first half,
underpinned by the planned delivery of a major customer contract which
contributed to meaningful growth in both revenue and profit.
"We are seeing encouraging early progress of our refreshed strategy, including
building activity in our core sectors, strengthening our partner network, and
continuing to invest in technology capability to support long-term growth.
"With a solid order book, a strong cash position and a clear focus, we are
well placed to deliver on our longer-term priorities."
(1)FY 2025 market expectations are revenue of £65.0 million and adjusted
profit before tax of £5.3 million, before share-based payments of c.£0.5
million
(2 )Underlying operating profit represents profit before tax, finance income
and costs, share-based payment charge and non-underlying items; see note 5.
(3 )Adjusted EBITDA represents profit before finance income and costs, tax,
depreciation, amortisation, share-based payment charge and non-underlying
items.
(4 )Adjusted diluted earnings per share are based on profit after tax but
before share-based payment charge and non-underlying items.
(5 )Excluding IFRS 16 lease liabilities.
For further information, please contact:
Synectics plc Tel: +44 (0) 114 280 2828
Amanda Larnder, Chief Executive Officer and Chief Financial Officer www.synecticsplc.com
(https://url.avanan.click/v2/___http:/www.synecticsplc.com___.YXAxZTpzaG9yZWNhcDphOm86NTYwYTllNmRlNmEwMDZmMWYwNTkzZGIxYTRhYzMwZGI6NjpmZDdmOjU4MjU3MDliNWJmOWIyMGFjMjkxZGZhYzcwNzk1ZjUxY2FkNGM5NWQyYWU4ODAxMTUxOTg3ZDc1ZmNkYjk3NWI6cDpG)
Claire Stewart, Company Secretary
email: info@synecticsplc.com
Shore Capital Tel: +44 (0) 20 7408 4090
Corporate Advisory - Tom Griffiths / David Coaten / George Payne
Corporate Broking - Fiona Conroy
Vigo Consulting Tel: +44 (0) 20 7390 0230
Jeremy Garcia / Fiona Hetherington / Peter Jacob
synectics@vigoconsulting.com (mailto:synectics@vigoconsulting.com)
About Synectics plc
Synectics plc (AIM: SNX) is a leader in advanced security and surveillance
solutions that help protect people, property and assets around the world.
It transforms customer operations by seamlessly integrating systems,
technologies, and data into a unified solution - enhancing safety, improving
efficiency, and enabling smarter, faster decision-making and response
capabilities.
With its technical expertise, decades of experience, and strong partnerships,
Synectics sets itself apart by delivering innovation and service that drive
real value and long-term success.
Find out more at https://synecticsplc.com/ (https://synecticsplc.com/) .
Chief Executive Officer's Statement
Introduction
I am pleased to report a good performance for Synectics in H1 2025. We have
continued to make steady progress across our core markets, delivering growth
in both revenue and profitability, while making early positive progress
against our refreshed strategy.
While it is still early in this process, our clear focus on five defined
sectors: critical infrastructure, energy, public space, transport, and leisure
and hospitality, is helping to shape our priorities and guide targeted
investment.
I would like to thank our teams across the business for their ongoing
commitment and hard work, which continues to drive Synectics forward.
Financial Summary
Synectics delivered a strong financial performance in H1 2025, with strong
growth in both revenue and operating profit. Revenue increased by 35% to
£35.5 million (H1 2024: £26.3 million) driven by particularly strong growth
in the leisure and hospitality sector, reflecting the planned delivery of a
major casino contract during the Period.
Growth was also delivered in the critical infrastructure and transport
sectors. Gross margin remained robust at 41.0% (H1 2024: 42.5%).
Underlying(2) operating profit increased by 48% to £3.3 million (H1 2024:
£2.2 million), reflecting increased sales volumes and disciplined cost
control, alongside continued investment in technology, sales and business
development, and operational capability to support long-term growth.
Adjusted(3) EBITDA was up by 47% to £4.2 million (H1 2024: £2.8 million),
with adjusted(4) diluted earnings per share up 59% to 16.4 pence (H1 2024:
10.3 pence).
The Company ended the Period with a solid order book of £35.1 million (31 May
2024: £30.2 million; 30 November 2024: £38.5 million), with the prior
year-end figure reflecting the inclusion of the significant contract awarded
by a major casino operator, the majority of which was delivered in the Period.
The Group remains debt free, with a strong cash balance at 31 May 2025 of
£12.1 million (31 May 2024: £6.4 million, 30 November 2024: £9.6 million),
providing flexibility to support organic investment and pursue strategic
M&A opportunities as they arise.
Reflecting the Board's continued confidence in the business' long-term
prospects, an increased interim dividend of 2.2 pence per share (H1 2024: 2.0
pence per share) will be paid on 22 August 2025 to shareholders on the
register at the close of business on 25 July 2025. The ex-dividend date will
be 24 July 2025.
Delivering our Refreshed Strategy
In the 2024 full year results, we outlined a refreshed strategy to align our
long-term objectives, accelerate growth and position the Group for long-term
value creation. Built around four clear priorities, this strategy is designed
to deepen our presence in specialist markets, strengthen recurring revenue,
and scale the business in a sustainable way. Our priorities are to:
· Expand our market presence in both core and adjacent markets, by
concentrating on areas where we have proven technical and operational
expertise;
· Invest in technology to drive innovation and deliver differentiated,
customer-focused solutions;
· Develop and maintain excellent customer relationships through
consistently high-quality service, trust and performance; and
· Develop and expand our partner network to support global market
growth by reaching customers more effectively.
Since setting out our refreshed strategy earlier this year, we have taken
initial steps to build our market presence and, while it is still early in
this process, we are actively progressing commercial activity in key regions.
In parallel, our work to assess the scale and viability of adjacent market
opportunities, including global data centres and the renewable energy market,
continues. We are seeing positive early engagement, although market entry is
expected to take time, reflecting both the nature of these sectors and the
need to establish the right relationships and structure for sustainable
growth.
We also continue to strengthen how we work with partners to support scalable
international growth. During 2024, we launched a unified global partner
programme, supported by a new online portal. A Head of Partner Programme has
now joined the business to drive structured engagement and ensure we maximise
the potential of both existing and new partner relationships.
Looking ahead, we remain focused on executing our refreshed strategy. While
some initiatives will take time to deliver a material impact, we are
encouraged by the early momentum. With clear priorities, targeted investment,
and a more focused sector-led approach, we believe the business is well
positioned to drive sustainable growth over the medium term.
People
Our people remain central to the success of Synectics, and we continue to
invest in building a positive, inclusive and engaging culture that enables
everyone to thrive.
We recently hosted our first UK Employee Summit, bringing teams together from
across the Group to hear more about our future priorities, share ideas and
spend time with colleagues from different parts of the business. The response
was overwhelmingly positive and reinforced the importance of meaningful
engagement in helping our people feel connected to the direction of the
business and their role within it.
We also launched our new internal communications platform. This is an
important step in improving how we communicate across locations, share
updates, and recognise achievements.
I am proud of the progress we have made so far. Continuing to support our
people and foster a culture where they can thrive will remain a key priority
as we move the business forward.
Business Review - Synectic Systems
Synectic Systems develops and delivers its technology-led solutions to
specialist markets globally through local systems integrators and channel
partners. Capabilities centre around a proprietary software platform, Synergy,
that is tailored to the unique requirements of each customer, and specialist
hardware for oil and gas markets built on our COEX camera range.
H1 2025 H1 2024 Inc/(dec)
£m £m £m
Revenues
Critical Infrastructure 1.1 1.9 (0.8)
Energy 5.7 6.5 (0.8)
Public Space 1.6 2.3 (0.7)
Transport 1.6 1.1 0.5
Leisure & Hospitality 13.6 5.6 8.0
Total revenue 23.6 17.4 6.2
Gross margin 47.4% 48.4% (1.0)ppt
Underlying operating profit 3.9 2.9 35%
Underlying operating margin 16.7% 16.7% -
Synectic Systems delivered strong growth in the first half, with revenues
increasing by 36% to £23.6 million (H1 2024: £17.4 million). This was driven
primarily by a significant increase in revenue from the leisure and
hospitality sector, particularly gaming. In line with management's
expectations, a substantial proportion of the major contract with a leading
casino operator was delivered during the Period, contributing materially to
the uplift. We also secured a five-year extension to the existing contract
with this customer, worth at least US$4.8 million, reflecting the customer's
ongoing confidence in our Synergy platform and its ability to scale with their
evolving requirements.
Gross margins dropped as expected by 1 percentage point due to the mix of
projects with particularly high margins in the previous year.
Underlying operating profit increased to £3.9 million (H1 2024: £2.9
million), with operating margins holding steady at 16.7%. While margins
remained flat, this reflects continued investment in our growth priorities,
including expanding our technology development team, strengthening sales and
marketing, implementing a new ERP system, and progressing the development of
our subscription pricing model. These initiatives are aligned with our
long-term strategy and are expected to support scalable, recurring growth over
time.
Within the energy sector, we continue to see stable demand across our customer
base, particularly in the Floating Liquefied Natural Gas and Floating
Production Storage and Offloading markets. Revenues were £0.8 million lower
than the corresponding period, which had benefited from the delivery of Saudi
Aramco's significant Zuluf project. We are seeing some slippage in expected
order timing, as project approvals in the oil and gas sector are taking longer
than anticipated. More frequently, projects are being re-evaluated or
re-engineered following the design work, primarily due to higher-than-expected
cost estimates. Despite this, the overall outlook remains positive, and we
anticipate increased activity in the second half of FY 2025.
We are also progressing our efforts to enter the renewable energy sector,
focusing on wind and carbon capture markets. We are seeing encouraging
engagement with potential customers, although initial contract awards are
expected to take time to materialise given the relatively lengthy investment
approval process.
Following the receipt of our trade licence in the UAE, we have appointed a
Head of Business Development in the region, bringing significant in-country
experience. As the UAE continues to invest in mega-resorts, infrastructure and
gated communities, we believe Synectic Systems is well-positioned to support
growing demand for advanced security and surveillance solutions.
In addition, we have appointed a Head of Partner Programme to lead the
expansion and improvement of how we work with our customers. The role will
focus on strengthening relationships with our existing partners and building a
more scalable, structured approach to partner engagement, including improved
support and commercial alignment. This will enable us to extend our market
reach more effectively while maintaining the high standards of delivery and
service that our customers expect.
Business Review - Ocular
Ocular delivers integrated solutions, service, and support directly to
end-users in the UK and Ireland - principally within public space, transport,
and national infrastructure - utilising a combination of the Group's
proprietary technology and third-party products.
H1 2025 H1 2024 Inc/(dec)
£m £m £m
Revenues
Critical Infrastructure 4.6 2.0 2.6
Public Space 2.1 2.9 (0.8)
Transport 5.4 4.4 1.0
Leisure & Hospitality 0.5 0.4 0.1
Total revenue 12.6 9.7 2.9
Gross margin 26.7% 28.5% (1.8)ppts
Underlying operating profit 0.8 0.7 0.1
Underlying operating margin 6.1% 6.7% (0.6)ppts
Following its rebranding to Ocular, the business continues to make positive
progress across its target sectors. Work is ongoing to refine and align
Ocular's go-to-market strategy with its core sector focus, supported by
investment in leadership and sales and marketing capability. In parallel, the
business is securing new customer wins and expanding its presence in key
markets.
Revenues increased by 29% to £12.6 million (H1 2024: £9.7 million), driven
by strong growth in transport and critical infrastructure markets. Within
transport, demand is being driven by the shift to IP-based systems, increased
investment in electric vehicle fleets, and the need for connected technologies
that enhance both fleet oversight and the passenger experience. In critical
infrastructure, revenue growth during the period was primarily driven by
delivery of large projects with National Grid.
Gross margin fell by 1.8 percentage points to 26.7% (H1 2024: 28.5%),
reflecting a high level of delivery of certain critical infrastructure
projects during the Period, where margins are typically tighter due to the
nature of competitive procurement frameworks. Despite this, underlying
operating profit increased by 17% to £0.8 million, with operating margin at
6.1% (H1 2024: 6.7%). The slight decline in operating margin reflects ongoing
investment in sales and business development capacity to support future
growth.
Ocular was awarded a £2.0 million project with long-standing customer West
Midlands Police for the installation of security systems across custodial
suites and police stations. This further strengthens Ocular's position as a
trusted provider to UK policing and reflects its deep knowledge in complex
public sector environments.
In May 2025, Ocular announced a contract with Stagecoach, the UK's largest bus
and coach operator, to pilot its new On-Board Hub solution, a connected
platform that integrates CCTV, telematics, and diagnostics to improve fleet
efficiency, operator oversight, and the passenger experience. This pilot
supports Stagecoach's commitment to digital transformation and represents a
significant opportunity for future deployment across the wider fleet.
Demand for Ocular's solutions continues to be driven by the need for flexible,
reliable systems that protect people and infrastructure in a rapidly evolving
risk landscape. The business is focused on aligning its go-to-market approach
with sector-specific needs, leveraging its innovation and technical expertise
to support long-term growth.
Ocular remains focused on long-term, sustainable growth by continuing to align
its go-to-market strategy with sector-specific needs, strengthening its
leadership position through thought leadership and technical innovation.
Innovation
We remain focused on enhancing our technical capabilities and strengthening
the integration of best-in-class technologies that address the evolving
operational and security challenges faced by our customers.
Building on last year's launch of Synergy DETECT, our first suite of AI-driven
tools, we will shortly be launching the next addition to our AI capabilities.
This upcoming release will further expand the platform's analytics offering,
supporting the growing customer demand for real-time intelligence and faster,
more effective incident response.
In parallel, we continue to invest in edge-based analytics across both our IP
and COEX camera ranges, while also progressing the evolution of Synergy to
support hybrid and subscription-based deployments. Our investment in
specialist sectors remains a core part of our platform strategy.
This sustained focus on innovation is enabling us to reinforce our position in
existing markets while creating the technical capability to scale over time.
Board
On 19 June 2025, we announced the appointment of Paul Williams as Chief
Financial Officer with effect from 26 August 2025. Paul brings significant
experience in the IT and software sectors, as well as strong capital markets
expertise. We look forward to welcoming him to the team and benefiting from
the breadth of his knowledge and experience.
Outlook
We are encouraged by the continued momentum across the business. Looking
ahead, the combination of a secured order book and an active sales pipeline
provides visibility over a significant proportion of the expected full-year
outturn.
Trading remains comfortably in line with market expectations for FY 2025(1),
and we expect revenue to be broadly balanced between the first and second
halves. As planned, we anticipate a step-up in operating costs in H2 2025,
reflecting increased investment in product development, and commercial and
operational capabilities. These investments are aligned with our long-term
growth priorities and are expected to begin contributing to financial
performance during FY 2026, with a more material impact anticipated over the
medium term.
Our strategic focus remains on deepening our presence in core sectors,
expanding into adjacent opportunities, and building scalable, recurring
revenue. While some of these initiatives will take time to deliver material
impact, we are encouraged by the early progress.
With a strong balance sheet, growing market recognition, and a focused
strategy in place, we remain confident in the Group's immediate and
medium-term outlook.
Amanda Larnder
Chief Executive Officer and Chief Financial Officer
7 July 2025
Consolidated income statement
For the six months ended 31 May 2025
Unaudited six months ended 31 May 2025 Unaudited six months ended 31 May 2024
Underlying Non- underlying items (note 5) Total Underlying Non- underlying items Total
(note 5)
Notes £'000 £'000 £000 £'000 £'000 £'000
Revenue 4 35,485 - 35,485 26,272 - 26,272
Cost of sales (20,944) - (20,944) (15,095) - (15,095)
Gross profit 14,541 - 14,541 11,177 - 11,177
Operating expenses (11,567) - (11,567) (9,015) (335) (9,350)
Adjusted(1) EBITDA 3 4,177 - 4,177 2,849 (335) 2,514
Share-based payment charge (284) - (284) (44) - (44)
Depreciation and amortisation (919) - (919) (643) - (643)
Operating profit 2,974 - 2,974 2,162 (335) 1,827
Finance income 69 - 69 - - -
Finance costs (44) - (44) (57) - (57)
Profit before tax 2,999 - 2,999 2,105 (335) 1,770
Income tax expense 6 (383) - (383) (412) 59 (353)
Profit for the period attributable to equity holders of the Parent 2,616 - 2,616 1,693 (276) 1,417
Earnings per share 8
Basic 15.4p 8.4p
Diluted 14.8p 8.4p
Adjusted(2) basic 17.1p 10.3p
Adjusted(2) diluted 16.4p 10.3p
(1) Adjusted EBITDA represents profit before finance income and costs, tax,
depreciation, amortisation, and share-based payment charge.
(2) Adjusted earnings per share excludes non-underlying items and share-based
payment charges
Consolidated statement of comprehensive income
For the six months ended 31 May 2025
Unaudited Unaudited
six months six months
ended ended
31 May 2025 31 May 2024
£000 £000
Profit for the period 2,616 1,417
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations (271) (6)
Gains/(losses) on a hedge of a net investment taken to equity 46 (42)
(225) (48)
Tax on items that may be reclassified (12) -
(237) (48)
Total comprehensive income for the period attributable to equity holders of 2,379 1,369
the
Parent
Consolidated statement of financial position
As at 31 May 2025
Unaudited Unaudited 30 Nov
31 May 2025 31 May 2024 2024
£000 £000 £000
Non-current assets
Property, plant and equipment 3,634 3,508 3,801
Goodwill and intangible assets 22,706 21,473 22,248
Deferred tax assets 1,665 1,966 1,488
28,005 26,947 27,537
Current assets
Inventories 6,678 5,906 9,244
Trade and other receivables 13,046 10,794 14,124
Contract assets 4,825 8,078 5,378
Cash and cash equivalents 12,120 6,414 9,559
36,669 31,192 38,305
Total assets 64,674 58,139 65,842
Current liabilities
Trade and other payables (13,037) (11,037) (13,665)
Contract liabilities (3,168) (3,327) (6,428)
Lease liabilities (650) (571) (701)
Tax liabilities (638) (185) (268)
Provisions (868) (303) (556)
(18,361) (15,423) (21,618)
Non-current liabilities
Provisions (605) (887) (741)
Lease liabilities (1,034) (1,037) (1,189)
Deferred tax liabilities (964) (1,009) (963)
(2,603) (2,933) (2,893)
Total liabilities (20,964) (18,356) (24,511)
Net assets 43,710 39,783 41,331
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 (1,223) (1,436) (1,417)
Currency translation reserve 669 864 906
Retained earnings 14,691 10,782 12,269
Total equity 43,710 39,783 41,331
Consolidated statement of changes in equity
For the six months ended 31 May 2025
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 2023 3,559 16,043 9,971 (1,436) 912 9,828 38,877
Profit for the period - - - - - 1,417 1,417
Other comprehensive income
Currency translation adjustment - - - - (48) - (48)
Total other comprehensive income - - - - (48) - (48)
Total comprehensive income - - - - (48) 1,417 1,369
Dividends paid - - - - - (507) (507)
Credit in relation to share-based payments - - - - - 44 44
At 31 May 2024 3,559 16,043 9,971 (1,436) 864 10,782 39,783
Profit for the period - - - - - 1,762 1,762
Other comprehensive income
Currency translation adjustment - - - - 12 - 12
Tax relating to components of other comprehensive income - - - - 30 - 30
Total other comprehensive income - - - - 42 - 42
Total comprehensive income - - - - 42 1,762 1,804
Dividends paid - - - - - (338) (338)
Share scheme interests realised in the year - - - 19 - - 19
Credit in relation to share-based payments - - - - - 63 63
At 30 November 2024 3,559 16,043 9,971 (1,417) 906 12,269 41,331
Profit for the period - - - - - 2,616 2,616
Other comprehensive income
Currency translation adjustment - - - - (225) - (225)
Tax relating to components of other comprehensive income - - - - (12) - (12)
Total other comprehensive income - - - - (237) - (237)
Total comprehensive income - - - - (237) 2,616 2,379
Dividends paid - - - - - (427) (427)
Share scheme interests realised in the year - - - 194 - (51) 143
Credit in relation to share-based payments - - - - - 284 284
At 31 May 2025 3,559 16,043 9,971 (1,223) 669 14,691 43,710
Consolidated cash flow statement
For the six months ended 31 May 2025
Unaudited Unaudited
six months six months
ended ended
31 May 2025 31 May 2024
£000 £000
Cash flows from operating activities
Profit for the period 2,616 1,417
Income tax expense 383 353
Finance (income) / costs (25) 57
Depreciation and amortisation charge 919 643
Net foreign exchange differences 143 134
Non-underlying items - 335
Cash flow on non-underlying items - (235)
Net movement in provisions 230 (88)
Share-based payment charge 284 44
Operating cash flows before movement in working capital 4,550 2,660
Decrease / (increase) in inventories 2,489 (961)
Decrease in trade, other and contract receivables 1,323 1,809
(Decrease) / increase in trade, other and contract payables (3,395) 94
Cash generated from operations 4,967 3,602
Tax (paid)/ received (213) 28
Net cash from operating activities 4,754 3,630
Cash flows from investing activities
Purchase of property, plant and equipment (259) (224)
Capitalised development costs (615) (555)
Purchased software (223) (2)
Net cash used in investing activities (1,097) (781)
Cash flows from financing activities
Lease payments (415) (361)
Net Interest received / (paid) 68 (19)
Dividends paid (427) (507)
Net cash used in financing activities (774) (887)
Net increase in cash and cash equivalents 2,883 1,962
Effect of exchange rate changes on cash (322) (152)
Cash and cash equivalents at the beginning of the period 9,559 4,604
Cash and cash equivalents at the end of the period 12,120 6,414
Notes
For the six months ended 31 May 2025
1 General information
These condensed consolidated interim financial statements were approved by the
Board of Directors on 7 July 2025.
2 Basis of preparation
These consolidated interim financial statements of the Group are for the six
months ended 31 May 2025.
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 2024.
These interim financial statements for the six months to 31 May 2025 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 2025. 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.
3 Alternative performance measures
Adjusted EBITDA and adjusted EBIT are now key performance measures for the
Group and are derived as follows:
Unaudited six months ended 31 May 2025 Unaudited six months ended 31 May 2024
Underlying Non- underlying items (note 5) Total Underlying Non- underlying items Total
(note 5)
£'000 £'000 £000 £'000 £'000 £'000
Profit before tax 2,999 - 2,999 2,105 (335) 1,770
Add back:
Finance income and costs (25) - (25) 57 - 57
Share-based payments 284 - 284 44 - 44
Adjusted EBIT 3,258 - 3,258 2,206 (335) 1,871
Depreciation 551 551 455 - 455
Amortisation 368 - 368 188 - 188
Adjusted EBITDA 4,177 - 4,177 2,849 (335) 2,514
Adjusted EPS:
The Group monitors adjusted EPS. In calculating earnings for adjusted EPS, net
profit is adjusted to eliminate the post-tax impact of non-underlying items
and the share-based payment charge. Note 8 includes a reconciliation of
earnings used for adjusted EPS.
4 Segmental analysis
Revenue by operating segment
Unaudited Unaudited
six months six months
ended ended
31 May 2025 31 May 2024
£000 £000
Systems 23,597 17,378
Ocular 12,563 9,718
Total segmental revenue 36,160 27,096
Reconciliation to consolidated revenue:
Intra-Group sales (675) (824)
35,485 26,272
Underlying operating result by operating segment
Unaudited Unaudited
six months six months
ended ended
31 May 2025 31 May 2024
£000 £000
Systems 3,922 2,897
Ocular 762 650
Total segmental underlying operating profit 4,684 3,547
Reconciliation to consolidated underlying operating profit:
Central costs (1,710) (1,385)
2,974 2,162
Underlying operating profit is reconciled to total operating profit as
follows:
Unaudited Unaudited
six months six months
ended ended
31 May 2025 31 May 2024
£000 £000
Underlying operating profit 2,974 2,162
Non-underlying items - (335)
2,974 1,827
5 Non-underlying items
Unaudited Unaudited
six months six months
ended ended
31 May 2025 31 May 2024
£000 £000
Costs associated with restructuring and transformation - 235
Write-off of deferred consideration - 100
- 335
As at 30 November 2022, a deferred consideration asset was recognised in
relation to the contingent consideration payable on the sale of SSS Management
Services Ltd ('SSS'). The consideration was contingent on certain performance
criteria of SSS in the twelve months following the sale, which have not been
met. Therefore, the consideration was not received, and the asset was written
off in the comparative period.
6 Taxation
The tax expense of £383,000 (2024: £353,000) for the period is based on the
estimated rate of corporation tax that is likely to be effective for the year
ending 30 November 2025.
7 Dividends
An interim dividend of 2.2p per share, totalling approximately £372,000
(2024: £338,000) will be paid on 22 August 2025 to shareholders on the
register at the close of business on 25 July 2025. The ex-dividend date will
be 24 July 2025.
8 Earnings per share
Earnings per share are as follows:
Unaudited Unaudited
six months six months
ended ended
31 May 2025 31 May 2024
Pence per share Pence per share
Basic earnings per share 15.4 8.4
Diluted earnings per share 14.8 8.4
Adjusted basic earnings per share 17.1 10.3
Adjusted diluted earnings per share 16.4 10.3
Adjusted earnings per share excludes non-underlying items and share-based
payment charges.
The calculations of basic and adjusted earnings per share are based upon:
Unaudited Unaudited
six months six months
ended ended
31 May 2025 31 May 2024
£000 £000
Earnings for basic and diluted earnings per share 2,616 1,417
Share-based payments 284 44
Non-underlying items - 335
Tax thereon - (59)
Earnings for adjusted basic and diluted earnings per share 2,900 1,737
Unaudited Unaudited
six months six months
ended ended
31 May 2025 31 May 2024
000 000
Weighted average number of ordinary shares - basic calculation 16,957 16,889
Dilutive potential ordinary shares arising from share options 698 23
Weighted average number of ordinary shares - diluted calculation 17,655 16,912
9 Availability of results
Copies of this statement are available on the Group's website
(www.synecticsplc.com) and will be available shortly from Synectics plc,
Synectics House, 3-4 Broadfield Close, Sheffield, England S8 0XN.
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