Synectics (SNX) , a provider of security and surveillance systems, issued a trading update for the 6 months ended May 31, 2024 (H1 2024).
Synectics said that following strong momentum in H1 2024, it expects trading for the remainder of the year ending November 30, 2024 to be "comfortably in line with market expectations".
The group elaborated that after early delivery of a number of projects by its Systems division in H1 2024, it now expects a more evenly weighted financial performance in FY24, rather than H2-weighted as previously forecast. Synectics' sales have historically been H2-weighted.
Regarding its balance sheet, SNX said its cash position remained "strong". Net cash was last reported at £4.6m as of November 30, 2023.
In its final results for FY23, SNX reported a 26% revenue increase to £49.1m, with a substantial increase in operating profit to £3.1m from £1.2m in FY22. Underlying EBITDA increased to £4.8m from £3.2m the prior year, and underlying EPS jumped to 14.2p from 6.9p. The group reported a strong orderbook of £29.2m, up from £24.2m, and recommended a final dividend boost of 50% to 3.0p/share from 2.0/p in FY22, underpinning confidence in medium-term performance.
FY23 results exceeded market expectations, underpinned by growing demand from the oil and gas sector. Interim results for H1 are expected on July 9, 2024.
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