Synectics Share Discussion Threads

[ohisay] 03/11/2021 07:44

Paul Webb, Chief Executive, Synectics plc added: " These are some of the first new major projects awarded in the sector since the start of the pandemic and, as footfall and revenues in North American casinos have recovered strongly in recent months, should indicate a relatively straightforward recovery in the gaming surveillance market in North America going forward.

Still cheap as chips ..I took another 5k today at 114p - surprised to get that tbh

[ohisay] 02/11/2021 08:56

SG I do so agree ..got myself another 5k @ 111p to take me to 40k.Happy to see how this sleeper plays out over the next year .

[simon gordon] 02/11/2021 06:31

Cheers Ohisay!

This seems to be the hidden gem and potential share price catalyst, be that order flow or prize asset in a take over:

'A critical strategic focus, addressing a new and growing market, these new Synergy systems are almost wholly software-based. They underpin the Group's objective of increasing earnings quality through a higher gross margin business mix and an increasing proportion of recurring and repeat revenue.'

-Interims: 13/7/21

Also got gaming sector to come back. All in all, the odds favour a higher share price in 12 months time.

[ohisay] 02/11/2021 02:00

What do you reckon it's worth in a takeover?


Would need to be pitched at 180p plus to get the BOD interested .

EV of £30m in a better Covid environment doesn't seem a stretch .



Potentially highly cash generative on these forecasts .

[spooky] 01/11/2021 13:34

Hmmmmm, interesting comments from Downing when you consider the fact that they have been, and i believe still are, the major sellers in the marketplace.

[simon gordon] 01/11/2021 13:16

Hi Ohisay,

What do you reckon it's worth in a takeover?

[ohisay] 01/11/2021 13:04

Good find RN.
Also ..
Update to the investment case

Continued disruption to casino/gaming sector due to Covid impacted sales
Success for latest technology and new contract wins
Strong balance sheet with net cash and no bank debt
Cost reduction actions delivering expected savings
Company expects to trade profitably in H2
Directors buying shares

With the Far East opening up now (other than China) its perfectly possible the Gaming/Casino sector should generate some contracts too.

But I do agree at the current market cap/EV it's ripe for a takeover ..the main reason I have a large position here.

[red ninja] 01/11/2021 09:47

downing-strategic-micro-cap half year report comment :-

Synectics recorded an unrealised loss of £0.77 million for the half-year period. This holding sits at an unrealised loss position of £1.96 million and we view it as one of the Covid laggards, where the market has not yet caught up with the positive initiatives taken through Covid. We expect the share price to reflect these initiatives and contract wins. If not, the M&A activity in the sector, where earnings multiples paid are way in excess of the 4x EBITDA that this company trades on, will surely be reflected in the valuation soon. Some of the highlights are below:

Over £2.4 million p.a. of cost savings;
3 multi-million pound project wins in the interim period; and
Significant improvement in prospects and cash generation.

[ohisay] 05/10/2021 16:27

Quite apart from anything else with Brent over 80$ they are guaranteed extra Oil and Gas contracts .There are short memories here.

[ohisay] 30/9/2021 16:27

It beggars belief that any half thinking person would sell these under 100p..but somebody just did for 98p.

Quite bizzare.

[foxman14] 23/9/2021 12:12

You can buy at 109p at the moment. Bargain

[malcolmmm] 13/7/2021 08:30

Should start recovering from here

[moreearl] 05/7/2021 13:55

Nice jump - however I note they've been marking this down the last month so I suspect they've been filling a large buy order.

Still cheap as chips and can see this doubling from here with newsflow

[malcolmmm] 05/7/2021 08:58

Bought last week, results to May out on the 13th, up 9.8% today

[moreearl] 08/4/2021 10:08

multi-million

[jswift10] 07/4/2021 20:13

Good news today with the new contract but I have missed something- the size of the contract?

[f15jcm] 02/3/2021 07:43

The strong and improving order book was the stand out for me. That and the cost savings. Results were grotty but now in the past.

[ohisay] 02/3/2021 07:13

The consolidated firm order book at 30 November 2020 was GBP25.4 million (2019: GBP32.7 million) around two thirds of which is expected to be traded in FY 2021 with the balance largely long-term service and support contracts.
The order book at 26 February 2021 was GBP32.9 million.

Just about back to normal then which is pretty remarkable given their casino business has been hit so hard..

[krutt] 17/2/2021 14:30

Thanks for the link Sharetips, It was worth a read.

[dekle] 17/2/2021 10:15

Results must be good otherwise they would save this news until their release in my opinion

[moreearl] 17/2/2021 09:45

Thanks sharetips - I'm going to top up more I think

[sharetips] 17/2/2021 09:31

more good news today - shares have further to go according to cityconfidential
www.cityconfidential.co.uk

[moreearl] 10/2/2021 11:14

Nice jump today on announcement of multi-million contract win. With the world close ot re-opening I imagine interest in these will jump considerabley. Glad i'm in now and expecting good things, still very bullish at these levels

[jswift10] 07/2/2021 10:06

Thanks for the clarification