Synectics announces modest resumed final dividend
Surveillance business Synectics estimated revenues for the year just ended rose as it announced the intention to recommend a "modest" resumed final dividend for 2015.
In its year-end trading update, the group said revenues are likely to have been around £68m, up from £64.6m in the previous year.
In addition, Synectics said underlying results are expected to be in line with market expectations.
Net cash at the year-end was approximately £0.3m compared with net debt of £6.1m at the prior year end.
The company said this cash inflow reflects primarily the unwinding of abnormally high working capital balances caused by project delays and disruptions in the oil and gas sector during 2014.
Synectics said difficult market conditions in the oil and gas sector are, as expected, continuing.
“The board still anticipates that it will take some time before capital expenditure on major projects in the industry, which drives demand for Synectics' sophisticated surveillance systems, recovers to more normal levels.”
In the 2015 financial year, Synectics' revenues from the oil and gas sector represented just under 20% of total consolidated revenues.
The company said market conditions in the other industry sectors served by the group have generally continued on a stable to mildly positive trend.
At 1354 GMT, shares were up 18% to 124p.