Synectics plc (AIM: SNX), a leader in advanced security and surveillance systems, announces that its Annual Report...
Delayed Share Price: 115.00p
Synectics plc (AIM: SNX), a leader in the design, integration and support of advanced security and surveillance systems, announces the conditional sale of the business of SSS Management Services Limited (“SSS” or the “Business”), which is a trading entity of its Synectics Security division, for cash consideration of up to £0.2 million to Parfas Limited. The transaction is subject to certain closing conditions and is expected to be completed on or before the Company’s financial year end on 30 November 2022.
SSS provides monitoring and managed services, principally to multi-site retailers in the UK. These activities are considered by the Board to be non-core and are not part of the Company’s growth plan. The sale of the Business will allow the Company to focus on the growth of its core business and allow SSS to prosper under private ownership.
The consideration comprises an initial cash payment on completion of £0.1 million with the balance, conditional on the profitability of SSS post-sale, payable following the first anniversary of completion. The proceeds will be used for general corporate purposes. The sale of SSS will strengthen the Company’s balance sheet and will have a positive impact on the Company’s gross margin. It is anticipated that the transaction will result in a material exceptional profit being realised on disposal, details of which will be included in the Company’s final results for the year ending 30 November 2022.
In the Company’s last financial year ended 30 November 2021, the SSS business generated audited revenues of approximately £7.0 million and an operating profit of less than £0.1 million and, as at 30 November 2021, had audited net liabilities of approximately £1.6 million.
Paul Webb, CEO of Synectics plc, commented: “SSS Management Services is a unique business with a very strong management team that will thrive under private ownership.”
Stacey Anderson, Managing Director of SSS, added: “While our long-established business has been part of Synectics for some time, we believe that we can serve our customers better as an independent privately owned business remaining true to our core values of providing the very best levels of service, independent of service providers.”
For further information, please contact:
Paul Webb, Chief Executive
David Coghlan, Chairman
Amanda Larnder, Finance Director
Tel: +44 (0) 114 280 2828
Tom Griffiths / David Coaten
Tel: +44 (0) 20 7408 4090