RNS: Trading Update
Monday, 14 June 2021
Synectics plc (AIM: SNX), a leader in the design, integration and support of advanced security and surveillance systems, provides the following update on trading for the six months ended 31 May 2021.
As expected, trading in the first half of this financial year continued at similar levels to the first half of the last financial year, delivering a much reduced estimated operating loss of approximately £(0.8) million (2020: £(2.0) million) on revenues of approximately £22 million (2020: £23 million). This follows action taken last year to reduce the Group’s operating cost base. The Group’s cash position remains sound, with net cash of £3.5 million at 31 May 2021 (28 February 2021 £4.5 million).
Activity in public infrastructure and transportation in the UK and Europe held up relatively well, but the continued impact of global travel restrictions on casinos and gaming resorts in Asia-Pacific and the United States meant that revenues remained subdued in what was, pre-pandemic, Synectics’ largest market sector. There are some early signs of increased customer activity in the gaming sector in both Asia and the United States, from which the Board expects to see some recovery in orders received by the Company in the second half of this financial year.
The Group’s major strategic focus is on integrated software control systems for substantial smart city and infrastructure implementations. In this area, good progress was made on the large project for City of London Corporation and City of London Police announced on 7 April 2021. Deployment of Synectics’ innovative hybrid cloud-based Synergy command and control system commenced during the period and is planned to continue into 2022. The major project for security command and control on the S-Bahn rail network in Berlin has continued its roll-out across the network and delivery will be completed in this financial year. These successful projects are expected to act as key references for similar initiatives elsewhere and are already generating significant interest.
Synectics will provide a further update with the announcement of its unaudited interim results for the six months ended 31 May 2021 on 13 July 2021 when, as previously announced, the Board is planning to reinstate guidance on future trading.
For further information, please contact:
Paul Webb, Chief Executive
David Bedford, Finance Director
Tel: +44 (0) 114 280 2828
Tom Griffiths / Henry Willcocks / David Coaten
Tel: +44 (0) 20 7408 4050