RNS: Year End Trading Update
Thursday, 10 December 2015
Synectics plc (AIM: SNX), a leader in the design, integration, control and management of advanced surveillance technology and networked security systems, provides the following update on trading for the year ended 30 November 2015.
Consolidated revenues for the year just ended are estimated to have been approximately £68 million, compared with £64.6 million in the previous year. Underlying results are expected to be in line with market expectations.
In recognition of Synectics' return to profitability (subject to audit), the Board intends to recommend a modest resumed final dividend in respect of the 2015 financial year.
Net cash at the year end was approximately £0.3 million, a substantial improvement from net debt of £(6.1) million at the prior year end. This cash inflow reflects primarily the unwinding of abnormally high working capital balances caused by project delays and disruptions in the oil and gas sector during 2014.
Difficult market conditions in the oil and gas sector are, as expected, continuing but the Group achieved revenue growth of more than 10% in that sector during the year to 30 November 2015 compared with the prior year. The Board still anticipates that it will take some time before capital expenditure on major projects in the industry, which drives demand for Synectics' sophisticated surveillance systems, recovers to more normal levels. In the 2015 financial year, Synectics' revenues from the oil and gas sector represented just under 20% of total consolidated revenues.
Market conditions in the other industry sectors served by the Group have generally continued on a stable to mildly positive trend.
The Group's final results for the year to 30 November 2015 will be released on or around 24 February 2016.
For further information, please contact:
David Coghlan, Chairman
Paul Webb, Chief Executive
Tel: +44 (0) 1527 850 080
Stockdale Securities Limited
Tom Griffiths / Henry Willcocks
Tel: +44 (0) 207 601 6100
Mark Court / Sophie Cowles / Jane Glover
Tel: +44 (0) 207 466 5000