RNS: Year End Trading Update
Thursday, 08 December 2016
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 2016.
Consolidated revenues for the year just ended are estimated to have been approximately £71 million, compared with £68.5 million in the previous year. Underlying results are anticipated to be in line with market expectations.
Net cash at the year end was approximately £2.0 million, up from £0.5 million at the prior year end. This cash inflow was achieved despite high levels of activity in the final two months of the financial year which meant that short term levels of customer receivables and accrued revenue at 30 November 2016 were abnormally high. This is expected to unwind in the first few months of 2017.
Conditions continued to be difficult in the oil & gas sector and, whilst market sentiment seems currently to be improving, we do not expect a resumption of significant growth in this sector before 2018. During the year, we reduced our manufacturing capacity in this sector to reflect market conditions, whilst continuing to retain capability.
In contrast, Synectics’ revenues from surveillance systems in the gaming industry enjoyed an exceptionally strong year, with two major new-build casino projects being delivered in the Far East.
Trading in other sectors during the year was generally solid, and market conditions remain positive. Further integration of Synectics’ product portfolio, development and sales activities across our transportation and critical infrastructure businesses has positioned the Group well for this key area of growth.
The Group’s final results for the year to 30 November 2016 will be released on or around 21 February 2017.
For further information, please contact:
Stockdale Securities Limited
Tom Griffiths / Henry Willcocks
Tel: +44 (0) 20 7601 6100
Mark Court / Sophie Cowles / Jane Glover
Tel: +44 (0) 20 7466 5000