Synectics expects profits to be in line with expectations

Surveillance outfit Synectics expects full-year underlying pre-tax profits to be "broadly in line with market expectations" after a strong showing in its gaming security division offset weaker performances elsewhere.

Synectics said trading in the second half of its year had continued several trends seen in recent periods, with a weak performance in its UK on-vehicle security sector and solid results from gaming security.

The firm projects its year-end net cash position to be somewhere in the realm of £6.5m, a marked improvement on the £3.8m seen a year earlier and noted that its pipeline of expected new business was "somewhat stronger than originally expected".

"The board is increasingly confident of solid progress in the group's results in the coming year," said Synectics.

After seeing new bus registrations "down significantly compared to last year", Synectics restructured its on-vehicle security systems unit - reducing operating costs by as much as £1.2m in the process.

However, these restructuring costs were projected to have cost around £2m to implement, meaning they won't offer a "positive profit contribution" until the trading year ended 30 November 2019.

As of 1040 GMT, Synectics shares had picked up 0.92% to 191.74p.