REG - Synectics PLC - Trading Update

SynecticsAnnouncement

14/06/2022 07:00

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RNS Number : 7089O  Synectics PLC  14 June 2022

     14 June 2022

RNS

 

 

Synectics plc

("Synectics", the "Company" or the "Group")

 

Trading Update

 

Synectics plc (AIM: SNX), a leader in the design, integration and support of
advanced security and surveillance systems, provides the following trading
update for the six months ended 31 May 2022 ("H1 2022").

Activity levels in the major end-user markets that Synectics serves generally
continue to gather momentum, particularly in Oil & Gas and in US gaming.
That recovery is as yet less evident in casinos and gaming resorts in
Asia-Pacific where leisure travel has remained subdued.  Although there are
signs of increased customer activity in this region, firm business remains
patchy and difficult to predict.

Trading in H1 2022 was in line with the Board's expectations and produced a
considerable positive turnaround from the same period last year, with
operating profits expected to be at a broadly similar level to the seasonally
stronger second half of last year.

Operating profit for H1 2022 is estimated to be approximately £0.4 million
(H1 2021: operating loss £(0.8) million) on revenues of approximately £23.0
million (H1 2021: £22.0 million). Net cash as at 31 May 2022 was
approximately £3.9 million (31 May 2021: £3.5 million).

The improved results were largely driven by revenue growth of approximately 20
per cent in the Company's core Systems division as markets severely affected
by the pandemic began their recovery. Although the division experienced some
disruption to its supply chains from the prevalent global issues, proactive
management meant that there was no material impact on delivery schedules or
margins. The Systems division's gross margins in H1 2022 held up strongly,
reflecting both its ability to pass on cost increases, and further progress in
the Group's strategy of increased software content in its deliveries.

Good progress was made in H1 2022 on the Group's large projects for advanced
infrastructure surveillance, including Deutsche Bahn in Berlin and the
Cloud-based deployment of Synergy for the City of London Corporation and City
of London Police.  These continue to act as important reference sites for
Synectics' core advanced technology.

In H1 2022, Synectics Security, the Group's UK-focused integration division,
experienced a decline in revenues compared to the same period last year due
principally to customer-led delays on several major projects that had been
expected to be largely completed in the half. However, an improvement in the
mix of business resulted in higher gross margins and an operating profit in H1
2022 expected to be at a similar level to the satisfactory result achieved in
the same period last year.

Overall, the Board is pleased with Synectics' performance in H1 2022 and
continues to expect further acceleration in the trajectory of improvement in
the second half of the financial year.

Synectics will provide a further update on trading and announce its unaudited
interim results for the six months ended 31 May 2022 on 12 July 2022.

 

Paul Webb, Chief Executive of Synectics, commented: "A strong team performance
has meant we have been able to deliver our goals for this period despite
increasing challenges in the supply chain and with markets still subdued. We
have all been working through our 'return to work' challenges, and are in good
shape now to push on together and deliver further improved results in the
second half of this financial year and beyond"

 

 

For further information, please contact:

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

David Bedford, 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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