Synectics delivers increase in half year revenues as markets recover

Security and surveillance systems company Synectics delivered an increase in profits and revenue over the last half year as the oil and gas, gaming, and public safety markets returned to growth.
By Greg Wright
Published 11th Jul 2023, 09:07 BST
Updated 11th Jul 2023, 09:08 BST

In the six months ended May 31 2023, Synectics' revenues were 14 per cent ahead of the same period the year before at £21.9m, while the underlying profit before tax was up 61 per cent at £0.7m.

In a statement to accompany the results, Synectics said: “The company's performance in H1 (the first half of) 2023 was in line with the board's expectations, continuing the good progress made period-on-period over the last two years.

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“Progress was underpinned by a strong performance in the global oil and gas market, which is expected to continue. There was some recovery in the Asian gaming market whilst progress in other markets was more modest, with further improvement expected.”

Synectics has published its half year results, which will be studied closely by City analysts. (Library photo of London Stock Exchange from Press Association)Synectics has published its half year results, which will be studied closely by City analysts. (Library photo of London Stock Exchange from Press Association)
Synectics has published its half year results, which will be studied closely by City analysts. (Library photo of London Stock Exchange from Press Association)

Commenting on the results, Paul Webb, chief executive of Synectics, said: "Synectics has now had four consecutive periods of progress in revenue and profits and is confident of delivering further progress in H2 (the second half of) 2023.

"Operating in markets that are strong and recovering, the company has solid long-term growth potential, from a sound platform.

“The board expects the company's results for the year ending November 30 2023 to be in line with market expectations, despite being weighted to the seasonally stronger H2 (second half of the year)."

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Craig Wilson, the recently appointed chairman of Synectics, added: "After conducting a comprehensive business review, it is evident that Synectics possesses excellent technology in thriving global markets, including oil and gas, gaming, and public safety, which are experiencing renewed growth.

"With a robust financial position and a clear strategic direction, it is now all about execution."

The company's order book on May 31 2023 was “materially ahead” of the same date last year, with a significant proportion expected to trade in the second half of the year.

The statement added: “Order intake since the period end has been strong with around £5m of new orders booked in June 2023 alone, including the further contract for Saudi Aramco which was announced by the company on 4 July 2023.

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“This order book, and the pipeline of anticipated business, supports the board's expectations of significantly improved trading in H2 2023.”

The statement added: “The company acknowledges the immense potential for sales growth through collaborations with local specialist partners and integrators in each market.

"Consequently, it is actively engaged in developing robust partner sales channels across various territories and markets. The partners' deep understanding of local dynamics plays a pivotal role in efficiently and swiftly expanding Synectics' sales coverage, eliminating the need for establishing a direct sales approach in every new geography.”

Synectics said it was important for the company to increase the level of contracted recurring revenue through long-term support contracts, software subscriptions, and licenses.