Synectics plc reports its unaudited interim results for the six months ended 31 May 2023 (“H1 2023” or “the period”).
Synectics plc (AIM: SNX), a leader in the design, integration and support of advanced security and surveillance systems, provides the following trading update for its financial year ended 30 November 2022 (“FY2022”).
Trading has continued in line with the Board’s expectations as set out in the Company’s interim results announcement of 12 July 2022. Second half profit is expected to be higher than in the first half, resulting in an underlying profit for the full year being slightly ahead of market expectations.
Due primarily to travel restrictions continuing to be imposed due to China’s response to Covid-19, trading remains challenging in casinos and gaming resorts in Asia, one of the Company’s core markets, where closures or reduced revenues have resulted in planned surveillance projects being postponed. Nevertheless, in the last few weeks, the Company has been awarded a contract to provide the surveillance system for a large new-build casino resort in the Philippines, which is expected to be delivered next year. Further details of this project will be announced in the New Year once the detailed contract scope has been finalised.
As expected, activity levels in the Oil & Gas market continued to gather momentum in the second half of the year, with a strong trading performance and a solid pipeline of expected orders in 2023.
In other markets, client-side delays combined with extended lead times has meant that trading, while still on a clear recovery path, was slightly weaker than forecast.
The well-documented difficulties with global supply chains and input price inflation continue to be effectively managed by the Company, with gross margins holding up well and trading not being materially affected.
The Group’s cash balance as at 30 November 2022 was £4.1 million (31 May 2022: £4.2 million, 30 November 2021: £4.6 million), with undrawn bank facilities of £3.0 million.
For further information, please contact:
Paul Webb, Chief Executive
Amanda Larnder, Finance Director
Tel: +44 (0) 114 280 2828
Tom Griffiths / David Coaten
Tel: +44 (0) 20 7408 4050