Strong H1 performance built on a solid order book and early delivery of several projects.

Synectics plc (AIM: SNX), a leader in advanced security and surveillance systems, reports its unaudited interim results for the six months ended 31 May 2024 (“H1 2024” or the “Period”).

Financial highlights

  • H1 2024 revenue increased 20% to £26.3 million (H1 2023: £21.9 million)
  • Underlying operating profit1 increased by 183% to £2.2 million (H1 2023: £0.8 million)
  • Underlying EBITDA2 up 67% to £2.8 million (H1 2023: £1.7 million)
  • Underlying earnings per share3 up 170% to 10.0p (H1 2023: 3.7p)
  • Net cash at 31 May 2024 of £6.4 million with no bank debt4 (31 May 2023: £4.0 million)
  • Order book at 31 May 2024 of £30.2 million (31 May 2023: £28.4 million)
  • Interim dividend re-instated at 2.0p per share (H1 2023: nil)

1 Underlying operating profit represents profit before tax, finance costs and non-underlying items; see note 4 of the financial statements.
2 Underlying EBITDA represents profit before finance costs, tax, depreciation, amortisation and non-underlying items.
3 Underlying earnings per share are based on underlying profit after tax but before non-underlying items.
4 Excluding IFRS 16 lease liabilities.

Operational highlights

  • Strong results bolstered by the early delivery of several projects by the Systems division
  • Board expects financial performance in FY 2024 to be more evenly weighted than in prior years and comfortably in line with market expectations*
  • Core specialist markets continue to show momentum, with all sectors seeing investment in new projects alongside the renewal of existing systems
  • Strong order book and robust pipeline of new opportunities support confidence for further progress in the medium-term
  • Continued investment in technology maintains the Company’s position as the go-to provider in key markets
  • Appointment in late April 2024 of Bob Holt OBE as Non-Executive Chair strengthened the Board

Post-Period events

  • Significant US$10 million contract for high-profile Asian gaming resort announced in June 2024, expected to be delivered in FY 2025, supports market expectations for FY 2025
  • Appointment on 1 July 2024 of Jon Kempster as independent Non-Executive Director and Chair of Audit Committee, further strengthening the Board

Commenting on the results, Paul Webb, Chief Executive of Synectics, said: “We’re delighted to have delivered a strong H1 2024 performance, driven by our Systems division completing delivery of several projects ahead of schedule. Our robust order book and promising pipeline of new business opportunities, coupled with our reputation as a trusted partner, ideally position us to capitalise on exciting opportunities across our growing specialist end markets.

"Against this positive backdrop, the Board remains confident in meeting market expectations for FY 2024* and the Company’s longer-term prospects.”

*Analyst consensus immediately before this announcement for the year ending 30 November 2024 was revenue of £52.9 million and adjusted PBT of £3.5 million.
 

For further information, please contact:
Synectics plc
Paul Webb, Chief Executive Officer
Amanda Larnder, Chief Financial Officer
Claire Stewart, Company Secretary
Tel: +44 (0) 114 280 2828
info@synecticsplc.com

Shore Capital
Tom Griffiths / David Coaten / Rachel Goldstein
Tel: +44 (0) 207 408 4050

Vigo Consulting
Jeremy Garcia / Fiona Hetherington / Aisling Fitzgerald
Tel: +44 (0) 20 7390 0230
synectics@vigoconsulting.com

Investor Presentation

The Company will be holding a live presentation of its H1 2024 results via the Investor Meet Company platform on Monday 15 July 2024 at 11.00 a.m.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9.00 a.m. the day before the meeting or at any time during the live presentation.

Investors can sign up for free and register to meet Synectics here. Investors who already follow Synectics on the Investor Meet Company platform will be automatically invited.

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