REG - Synectics PLC - Sale of non-core Business

SynecticsAnnouncement

11/11/2022 07:16

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RNS Number : 0630G  Synectics PLC  11 November 2022

 RNS   11 November 2022

 

 

Synectics plc

("Synectics" or the "Company")

 

 

Sale of non-core Business

 

Synectics plc (AIM: SNX), a leader in the design, integration and support of
advanced security and surveillance systems, announces the conditional sale of
the business of SSS Management Services Limited ("SSS" or the "Business"),
which is a trading entity of its Synectics Security division, for cash
consideration of up to £0.2 million to Parfas Limited. The transaction is
subject to certain closing conditions and is expected to be completed on or
before the Company's financial year end on 30 November 2022.

 

SSS provides monitoring and managed services, principally to multi-site
retailers in the UK. These activities are considered by the Board to be
non-core and are not part of the Company's growth plan. The sale of the
Business will allow the Company to focus on the growth of its core business
and allow SSS to prosper under private ownership.

 

The consideration comprises an initial cash payment on completion of £0.1
million with the balance, conditional on the profitability of SSS post-sale,
payable following the first anniversary of completion. The proceeds will be
used for general corporate purposes. The sale of SSS will strengthen the
Company's balance sheet and will have a positive impact on the Company's gross
margin. It is anticipated that the transaction will result in a material
exceptional profit being realised on disposal, details of which will be
included in the Company's final results for the year ending 30 November 2022.

 

In the Company's last financial year ended 30 November 2021, the SSS business
generated audited revenues of approximately £7.0 million and an operating
profit of less than £0.1 million and, as at 30 November 2021, had audited net
liabilities of approximately £1.6 million.

 

Paul Webb, CEO of Synectics plc, commented:

"SSS Management Services is a unique business with a very strong management
team that will thrive under private ownership."

 

Stacey Anderson, Managing Director of SSS, added:

"While our long-established business has been part of Synectics for some time,
we believe that we can serve our customers better as an independent privately
owned business remaining true to our core values of providing the very best
levels of service, independent of service providers."

 

 

For further information, please contact:

 Synectics plc                                                Tel: +44 (0) 114 280 2828
 Paul Webb, Chief Executive

David Coghlan, Chairman

 Amanda Larnder, Finance Director
 email: info@synecticsplc.com (mailto:info@synecticsplc.com)  www.synecticsplc.com

 Shore Capital                                                Tel: +44 (0) 20 7408 4050
 Tom Griffiths / David Coaten

 

 Ends

 

About Synectics plc

Synectics (AIM: SNX) is a leader in the design, integration and support of
advanced security and surveillance systems that enable clients around the
world to protect their people, communities, and assets.

 

Founded over 30 years ago, Synectics has deep industry experience across
gaming, energy, urban transport, public space and critical infrastructure
projects. The Group's expert engineering teams work in partnership with
customers to create integrated product and technology solutions, proven in the
most complex and demanding operating environments.

 

Find out more at www.synecticsplc.com (http://www.synecticsplc.com)

 

 

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