Synectics Share Discussion Threads

[dasv] 23/7/2013 07:28

2.5m contract win Oil and Gas offshore surveillance.

[valhamos] 18/7/2013 13:09

Liked the story here and bought in a couple of weeks ago.

[philo124] 18/7/2013 09:03

Yes, should do well and revisit highs shortly.

[billy_liar] 18/7/2013 08:29

Results due in a week. Very quiet thread. Certainly looks like one being overlooked.

[davebowler] 24/6/2013 09:24

Westhouse;
SYNECTICS*
Buy













SNX.L / 400.0p / £70.35m / TP: 545p













Event: M & A













Likely % change in earnings forecasts: No Change














Bolt-on acquisition

Synectics has announced that it has acquired the balance of the share capital of Coex Services Asia (CSA) for a maximum consideration of £2.1m. CSA, in which Synectics has held a 20% interest since 2004, is a private Singaporean company supplying surveillance systems in the Far East, primarily to Oil & Gas clients. In audited annual results to 31 December 2012, CSA reported PBT of £0.2m on revenue of £2.4m, and net assets of £0.9m.

Synectics has acquired the remaining 80% of CSA for an initial consideration of £1.8m: comprising £1.3m in cash, 101,403 shares in Synectics (valued at £0.4m on 31 May 2013), and the transfer of Synectics’s 20% interest in a related company valued at £0.1m. CSA currently has net assets of approximately £1.1m and holds net cash of around £0.9m. In addition, further consideration of up to £0.3m will be payable in cash dependent on the profit performance of CSA in the two years following acquisition. Under the terms of acquisition the CSA directors, and previous principal shareholders, Kenny Tan (Managing Director) and Veronica Chua (Finance Director) will remain with CSA for a minimum period of three years.

In our opinion, today’s news is a sensible bit of housekeeping by Synectics as management has already identified Singapore as a key operational hub in the Far East. We view the significant contract that Synectics announced in March as a potential springboard for further business in the area in due course.

As a readacross in terms of valuation we note the acquisition of Exacq by Tyco last week for $150m in cash. Exacq generated revenue of US$54.6m in 2012 so Tyco is paying c2.7x sales, which would imply a valuation of over £200m for Synectics on the same basis. We reiterate our 545p target price and Buy recommendation ahead of interim results scheduled for 24 July.

[philo124] 24/6/2013 07:39

RNS. Singapore.

[philo124] 12/6/2013 08:39

The 407p trade was mine and it was a Buy.

[kombimatec] 13/5/2013 13:34

The mail talks of a potential bid. Who are the suitors?

Directors sale reported recently to satisfy institutional demand yet other big institutional holders have been selling. I have to admit I have sold some of my shares as well in the hope I can buy them back cheaper.

[davebowler] 07/5/2013 09:20

westhouse;


SYNECTICS*
Buy







SNX.L / 430.0p / £75.60m / TP: 545p






Likely % change in earnings forecasts: No Change






Contract win

Synectics has announced that it has won a new three-year contract with Stagecoach. Synectics has worked with Stagecoach for ten years and the new deal is expected to be worth more than £5m over three years. A key feature of this contract is the demand by Transport for London for higher quality images and increased storage capacity.

Following last week's positive AGM statement we increased our target price to 545p which equates to a FY2013E P/E of 17.0x and an EV/EBITDA of 10.6x. In our view, this contract win helps to indicate why Synectics justifies a premium rating relative to its peer group. Namely, that it should deliver stronger growth and an improvement in margins. We are happy to reiterate our Buy recommendation.

[cfro] 07/5/2013 08:48

A contract win is always nice to have of any size. However this seems to me just a follow-on type contract with Stagecoach whom they have worked with for the last ten years or so. Still, good that SNX have renewed the relationship and new contracts are being won.

[billy_liar] 07/5/2013 08:09

Nice contract win to start the day in the right direction.

[kombimatec] 02/5/2013 12:37

I always think it a bit cynical when they offer 'institutional demand' as an excuse. However I suppose the directors are entitled to take a prfit at sometime

[interceptor2] 02/5/2013 07:51

If a director has sold some shares, then the best reason that I like to see, is the one given in todays RNS below imo.

"The Company has been further advised that the sale was made in order to satisfy institutional demand, and that the holders of Mr Coghlan's remaining interests in the Company's shares have no current intention of making any further sales. "

ic2...

[philo124] 02/5/2013 07:05

Director SALE.

[davebowler] 01/5/2013 09:58

Westhouse;
Buy













SNX.L / 446.0p / £78.41m / TP: 545p from 450p













Event: AGM













Likely % change in earnings forecasts: No Change














AGM statement

Synectics' AGM statement says that the positive trading of FY2012 has continued in the year to date. Two large contract wins were announced in March and with these performing as expected there is a good underpinning to the revenue growth forecast for FY2013. We are most encouraged by the confidence that results for the year will be in line with market expectations.

We have increased our target price to 545p from 450p, which would equate to a FY2013E P/E of 17.0x and an EV/EBITDA of 10.6x vs the weighted average peer group of 18.6x and 11.0x respectively. Arguably, Synectics justifies a premium rating relative to the peer group given its much stronger growth prospects and the forecast improvement in margins. We are happy to reiterate our Buy recommendation.

[interceptor2] 01/5/2013 08:01

I might have been right with the AGM date, but a slight error in the previous post. Should have said interims are due in July, not finals. Since corrected.

Happy with the AGM statement, which sounds confident going forward. Couldn't ask for anything else this early into the new financial year.

ic2...

[cfro] 01/5/2013 07:50

Your dead right ic2, it is this morning. Caught me by surprise actually as i wasnt expecting it quite yet.

Good 'inline' statement which is perfect given the high growth forecasted.

[interceptor2] 30/4/2013 20:15

I have tomorrow in my diary as the AGM date, so hopefully we will see a statement.

ic2...

[interceptor2] 30/4/2013 18:22

It doesn't seem to take much volume to move these either way, I agree that some profit taking was likely. Interims are due in July, not sure when a trading update might be released, but expect it to be a good one.

Edited

ic2...

[cfro] 30/4/2013 13:23

Smidgin of profit-taking now, but there was bound to be after a strong rise in the last few days or so.

One to be patient with imo.

[billy_liar] 30/4/2013 08:27

Onwards and upwards!