Synectics to finish year in line with forecasts

Surveillance technology designer, integrator and manager Synectics updated the market on its trading for the year to 30 November on Tuesday, reporting that consolidated profits were anticipated to be in line with market expectations.

The AIM-traded company said that would represent growth of over 10% in underlying profits before tax compared with the year to 30 November 2016, on revenues that were broadly flat.

It said its consolidated operating margin increased primarily as a result of better-than-anticipated performance in the higher-margin gaming surveillance sector, which was offset by weaker performance in the lower-margin UK on-vehicle market.

“After an exceptionally strong year to 30 November 2016, which unusually included two major new casino projects in the Far East, Synectics' performance in the gaming sector in the financial year just ended was better-than-anticipated by the board, as increasing inroads were made with major casino customers in the US,” the Synectics board explained.

“Deliveries of surveillance systems to the UK bus market were solid in the first half, but declined in the latter part of the year on the back of a 14% decline in UK new bus registrations in the third calendar quarter.

“Elsewhere, as expected, the oil and gas sector remained subdued and market conditions in the group's other sectors remain positive.”

Synectics said its net cash at year-end was approximately £3.9m, up from £2.2m at 30 November 2016.

The group's final audited results for the year to 30 November would be released on or around 20 February, the board confirmed.