Synectics Share Discussion Threads

[cockerhoop] 17/5/2015 19:56

I still think they have plenty of headroom and a placing will not be required unless trading deteriorates.

Debt at YE was £6.1m, well within the £12m facility and increased by only £1m in H2, part of which was working capital for delayed projects which the company say they expect to unwind during 2015.

Recent director purchases also suggest a placing probably isn't expected imo.

[eggbaconandbubble] 17/5/2015 18:07

From my perspective if they go for a placing, they're history. If they have the mettle and dig themselves out, it says a whole lot, and very much worth watching. Very simplistic view I know.
In the meantime I'm not leaping back in.

[she-ra] 17/5/2015 16:47

I think they'll go for a placing like Digital Barriers did. Hope there's not too much dilution though.

[eggbaconandbubble] 17/5/2015 15:00

Release doesn't give any indication to how many 'multi millions'. They state it's second phase of a job they've done before but not even a hint of how big phase one was.
I find without further explanation, that's a bit suspect. Anyone any comments here.

[cockerhoop] 13/5/2015 07:40

Picking up some of the gamimg contracts alluded to in the Prelims

[she-ra] 18/4/2015 11:29

A few big trades on Friday. Sunday newspaper ramp?

[kombimatec] 17/4/2015 13:41

Seems to be holding, more big buys today. No sign of fund raising.

[she-ra] 08/4/2015 15:21

£23 million of those assets are intangibles.

[kombimatec] 08/4/2015 15:14

Market Cap £25m NAV £36m, are they going to let others get them cheap as long as they ahve access to funds through banks?

[she-ra] 08/4/2015 14:49

Cash of £1.3 million but net debt of £6.1 million. The latter figure is the one you should focus on.

[kombimatec] 08/4/2015 14:42

Why do you think they require funds? They had £1.3m cash at the end of the year and made a profit. The recorded loss was non recurring costs. They are lower in funds due to fall in sales and therefore an increase in stock. I imagine as the stock is depleted this will generate cash. Any cash they may require would be short term in my opinion. I am genuinely interested in any informed views or opinions. Thanks.

[she-ra] 08/4/2015 13:43

I suspect directors buys are intended to fatten it up for a placing.

[kombimatec] 08/4/2015 11:07

Shame this fell off a cliff after a great run since the days of Protec. Anyway it seems to me to be undervalued now. Director buying preceeded the last deal annoucement and more recent director buys suggests more news to come. The outlook indicated in the last results would indicate an upturn in sales and profits to look forward to. Hope so because I am heavily into these by my standards.

[she-ra] 30/1/2015 11:17

Synectics house broker Westhouse has reiterated its buy rating which makes me wonder whether there is about to be a placing and dilution.

Therefore I'll hold fire before buying any.

[zipstuck] 29/10/2014 08:07

This is going to to tale a long long time to recover and when it does the pE ratio will not be great

[she-ra] 28/10/2014 17:57

I'd like to know what the net debt stands at now.Hope they don't need a placing.

[pugugly] 28/10/2014 16:32

27 Oct finnCap Hold 170.00 550.00 210.00 Downgrades
27 Oct Westhouse Securities Buy 170.00 550.00 315.00 Under Review

If finnCap correct suggests still a lot more to fall.

[pugugly] 28/10/2014 16:29

A web search suggests they are a Panamanian Company.

[varies] 28/10/2014 14:45

Whitehall Associated S.A. seems to have bought 125,000 shares on 24 October, presumably at over 300p, to bring its holding to 2,497,500 or 14.04%.
If so, it is re-assuring to learn that gullible mugs here like myself were not alone in failing to see the bad news coming.
Does anyone remember who Whitehall Associated are ?

[luckymouse] 27/10/2014 18:48

Taken from the 29th July Interims:

Commenting on the results, John Shepherd, Chief Executive, said:
"Though trading in the first half of this year has been worse than expected, none of the fundamental factors which will drive profitable growth have changed. We continue to focus on delivering advanced proprietary integrated command and control systems to the most demanding global customers and invest in the intellectual property necessary to keep us ahead of the competition.

"The detailed reasons for the shortfall against expectations are set out in the Chairman's Statement and I firmly believe that those factors which are within our control have been properly addressed and will not recur.

"We have undertaken a thorough review of all projects to ensure there are no further material loss-making contracts and, now integration of the Systems division has been completed, there will be no more disruption to operations.

"We have not allowed these setbacks to slow progress against our strategic objectives, especially the launch of our integrated command and control software platform - Synergy 3, which is gaining significant interest in the market. We have seen strong growth in the Group's consolidated order book and qualified pipeline and are therefore well positioned to maximise the opportunities we can see in our chosen niche markets especially in the Middle and Far East.

"I expect a strong performance in the second half of this year and for that momentum to continue into 2015 and beyond."

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AMAZING mis-guidance! They were unlucky though as well - the oil price tanked about 1 week after they released the interims which they couldn't have known - that plus nervous geopoliticals has suddenly meant a lot of projects are on hold simply because theres less money and certainty around. Client project forward budget planners don't stack up.

www.4-traders.com/WTI-SPOT-2355639/

[varies] 27/10/2014 10:01

The interim statement issued on 29 July expressed strong confidence in profits for the second half, ie the period 1 June to 30 November, of which nearly two months had already passed. So this latest warning does come as a shock.
If there are any rays of sunshine here, I cannot see them.

[stegrego] 27/10/2014 08:08

Surely needs to drop much lower than current 270.

[davebowler] 29/7/2014 10:46

Westhouse;
Buy













SNX.L / 342.5p / £60.95m / TP: 550p













Event: Results issued













Likely % change in earnings forecasts: No Change














Interim results – much better second half expected

It is encouraging that Synectics expects a strong performance going forward after trading in the six months to end May 2014 proved even more difficult than had initially been anticipated. We make no changes to any of our adj. PBT forecasts implying £5m of adj. PBT in H2 2014 and making the uplift to £9.0m for FY2015 achievable in our view.

With a strong order book and sales pipeline we believe that the share price will improve as confidence in hitting our forecasts increases. We maintain our 550p target price and Buy rating.