Strong results underpinned by growing demand from the oil and gas sector

Synectics plc (AIM: SNX), a leader in advanced security and surveillance systems, announces its audited final results for the year ended 30 November 2023 (“FY 2023”).

Financial highlights¹

• Revenue increased 26% to £49.1 million (FY 2022: £39.1 million)
• Substantial increase in underlying operating profit² to £3.1 million (FY 2022: £1.2 million)
• Underlying EBITDA³ increased to £4.8 million (FY 2022: £3.2 million)
• Underlying earnings per share⁴ increased to 14.2p (FY 2022: 6.9p)
• Net cash at 30 November 2023 of £4.6 million with no bank debt⁵ (30 November 2022: £4.3 million)
• Strong order book at 30 November 2023 of £29.2 million (30 November 2022: £24.4 million)
• Recommended final dividend increased by 50% to 3.0p per share (FY 2022: 2.0p)

¹ Following the disposal of a non-core business in November 2022, all comparative figures in this announcement reflect continuing operations unless otherwise stated.
² Underlying operating profit represents profit before tax, finance costs and non-underlying items; see note 4.
³ Underlying EBITDA represents profit before finance costs, tax, depreciation, amortisation and non-underlying items.
⁴ Underlying earnings per share are based on underlying profit after tax but before non-underlying items.
⁵ Excluding IFRS 16 lease liabilities.

Operational highlights

• Strong results, exceeding market expectations, underpinned by growing demand from the oil and gas sector
• Solid order book, reinforced by sound order intake and significant contract wins across all sectors, with continued momentum into 2024
• Continued investment in technology development saw the release of new AI and sector-specific features to the proprietary Synergy software platform, and advancements to the COEX explosion-protected camera stations range
• Ongoing focus on specialist, core markets – gaming, oil and gas, public space, transport and critical infrastructure – offers significant growth opportunities

Post-period end events & outlook

• Extended agreement with National Grid, with contracts of £4.0 million signed to upgrade more sites across its estate
• Key end markets continue to recover, and we are seeing opportunities for both new projects and the renewal of existing infrastructure and systems in all sectors
• Strong new business momentum delivered at the end of FY 2023 has continued into H1 2024, underpinning the Board’s confidence in the Company’s outlook for the medium term

Commenting on the results, Paul Webb, Chief Executive of Synectics, said: “Synectics delivered a strong performance in FY 2023 and, operating in strong and growing specialist markets, the Board is confident that the Company will continue to deliver further progress in this year and beyond.

“Synectics has built a very strong reputation and is a trusted brand that counts many high-profile businesses among its customers.

“In the year to date, the Company has seen continued sales momentum, driven by a robust order book and a strong pipeline of new business opportunities, underpinning the Board’s confidence in the Company’s outlook for the medium term.”

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
Tel: +44 (0) 20 7408 4090

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