Synectics said its order book as of 30 November 2024 was worth £38.5m (30 November 2023: £29.2m), noting that this has been boosted by consistent contract wins across all of the group’s sectors which has continued into FY25.
The business points to continued success with securing contracts, including material Gaming awards unveiled in the US and South-East Asia worth an aggregate $4.9m/£3.9m.
Synectics says it has strengthened its sales organisation, investing in resources to target key sectors, including North American gaming, tribal gaming (casinos located on reservation land), UK transport and infrastructure and international business development.
The company adds it has identified promising growth potential in new markets and geographies such as the United Arab Emirates, Infrastructure in North America and Asia, global datacentres, and renewable energy. |
In fact the spread has really tightened up now which is now a true market, it's never been this close for a long time.
The mm's are now at £3.32 to buy and are selling at £3.30, that's the closest it's been in a while, especially during the course of today, things are quietening down.
Expect good media coverage now. |
Can sell 20k at 332.5 so not opportune time to buy just yet. |
The management need do nothing re the sp, just carry on telling us the truth, it will take care of itself.
This is a growing space and the company has a solid footing in it, they pay a increasing divi, they have no debt at all, they win contracts, and they have £9m in the bank, if that doesn't interest pi's and insti's then nothing will.
Yes, all day someone has been offloading into the market, but some are there taking them.
All this company needs to do is carry on as before, announce any contract wins and steer the ship, never put all your eggs in 1 basket, but i'm damn close here.
Today early doors, I had an order to sell 25% of my holding at £3.75p if it got there and then ride with the other 75%, obviously it never got there, so i will see where it settles this week and very happily add and will also reinvest any Divi income in April.
We will get shakes, but i'm hoping for holdings announcements, because they've just got to come. |
Thanks, yield, growth, net cash, growing market, still can't see how this is under £4 currently! Poor markets today, PI sellers as volumes low, let's see if management can drum up a bit of interest. DYOR |
 Someone find me a better stock please, great future ahead. Courtesy UK Investor mag
Synectics – what a cracking set of results from this security solutions provider :
Now we know what it is doing!
This morning Synectics (LON:SNX), a solutions provider in the growing global security market, announced its Final Results for the year to end-November 2024.
On the back of a 13.6% revenue increase to £55.8m (£49.1m), the group saw its underlying operating profit expand almost 57% to £4.8m (£3.1m), with earnings per share increasing to 21.6p (14.2p) and with a 50% improvement in its dividends to 4.5p (3.0p).
By the end of its last trading year the group’s order book was standing at £38.5m (£29.2m).
The group also ended that year with no bank debt and with £9.6m (£4.6m) cash in the bank.
These strong results showed record gross margins and adjusted profit before tax being materially ahead of recently upgraded market expectations, supported by a solid year of growth in all sectors, particularly within its Gaming division.
The impressive order book has been boosted by consistent contract wins across all of the Group’s sectors, which we have already seen has continued into this current trading year, with recent contract wins in South-East Asia and the US.
Management Comment
CEO and CFO Amanda Larnder stated that:
“I am immensely proud of our strong performance in FY24 and the positive momentum we have built heading into FY25, which is backed by a robust order book.
During FY25, we are investing in strategic initiatives across our products, operations, and in strengthening customer and partner relationships to ensure sustainable growth in future years.
We are confident that our commitment to delivering operational excellence combined with our innovative offerings position us to be a trusted leader in our chosen markets, enabling us to seize new and exciting business opportunities.”;
The Business
The Sheffield-based group is a leader in advanced security and surveillance systems that help protect people, property, communities, and assets around the world.
It also has operations in Berlin, Macau, Singapore and in Wheat Ridge, Colorado.
The company’s expertise is in providing solutions for specific markets where security and surveillance are critical to operations.
Such markets include gaming, transport, public space, oil and gas, and critical infrastructure.̷9;
Its experience and technical excellence, combined with long-standing customer relationships, provides fundamental differentiation from mainstream suppliers and makes the company a stand-out in its field.
Synectic Systems develops and delivers its proprietary, technology-led solutions to specialist markets globally – including gaming, oil and gas, public space, transport and critical infrastructure – through local systems integrators and channel partners.
Capabilities centre around a proprietary software platform, Synergy, that is tailored to the unique requirements of each customer, and specialist hardware for oil and gas markets built on our COEX camera range.
The Ocular side delivers integrated solutions, service, and support directly to end-users in the UK and Ireland – principally within public space, transport, and national infrastructure – utilising a combination of the Group’s proprietary technology and third-party products
Analyst View
At Shore Capital Markets, its analyst Rob Sanders has estimates out for the group’s year to end-November 2025 showing £65.0m (£55.8m) revenues, lifting its adjusted pre-tax profits to £5.3m (£4.7m), with earnings of 24.9p (21.6p) and paying a dividend of 6.5p (4.5p) per share.
For the 2026 year he looks for £70.5m sales, £6.0m profits, 28.4p earnings and a dividend per share of 8.0p.
The year to end-November 2027, he estimates, could show £75.1m revenues, £6.8m profits, with earnings leaping to 32.1p per share, easily covering a dividend of 8.0p.
In today’s note on the group, which states a 486p DCF valuation per share, Sanders states that:
“Even though the share price has performed well over the last 12 months or so, we believe that the valuation metrics in the outer years, suggest there is scope for further significant share price upside.”
In My View
This is a cracking business – with a global market for its proven systems, with a growing order book and increasing sales and profits – that is just what stock markets are about in backing such companies.
And that is why I continue to rate highly the potential for this group’s shares, now 360p, to rise to above 400p and trade the 420p/450p range. |
One of the few winners I can see this year |
Net cash was Nov 24, so 3 months extra cash in to the coffers....Upgraded expectations are still expected to be met, high growth, cash generative, yet marked down 25p....will be topping up as we move into this year and have bought more this morning.
GLA / DYOR |
If this was just Whitehall reducing and nobody picking up the slack i might have been a little bit concerned about how many they're putting onto the market, they hold a significant more amount than the next ii's who are around the 6-7% mark.
But somebody is most definitely buying the stock being put on the market.
I expect to see rns's from both in the coming days. |
Minor profit taking - probably end up flat by end of play and blue by end of week. At these levels we might expect a takeover (although it would be highly resisted given the open playing field). DYOR etc |
A lot of technology focused shares are getting hammered at the moment. Outlook is in line with boards expectations and upgraded guidance but also mentions of costs of investment in growth for 2025 which won't show immediately so seems like this is an investment year for them for future growth in new markets. |
Let's put it this way, this is not a company going bust anytime soon with £9m in the bank and no debt at all.
They are well established all over the world now, and all i expect in the coming years is expansion and new contract win news.
Add where you can and enjoy your Divi in April. |
Tbh, i expected it Jeansy, a lot arrived just because of the rns stating 'materially ahead of expectations'
It doesn't worry me at all, i'm invested here for the future because i see a good business in a tech savvy world upon us, their AI facial recognition technology going forward will reap handsome amounts, it is a rapidly growing world. |
Always likely to happen |
looks like profit takers moving in |
Good set of results. Beat previous upgraded guidance. cash pile of nearly 10million and 50 percent dividend increase. They also seem to be branching out from gaming to other industries and seem to have a good focus on product development. Happy to continue holding here. |
No debt, indeed up to £9m cash now for future investment and a nice upgraded divi to boot.
A tightly held 17m in float, and a late buyer of 10,000 shares last night.
Loads to like in that rns going forward. |
So that is a beat on recently upgraded pbt of 4.3m which is now 4.7m, order book 1m higher than the recent TU too. |
Cracking set up results IMO and net cash growing...looks far too cheap DYOR |
Going off the last few weeks trades, whatever the seller put onto the market, they were quickly taken care of by a buyer, the largest yesterday put through after closing is very encouraging.
The share price has held firm all the time, and i feel there's not a lot around atm. |
Just 351.5 at present |
Base what's the bid now please? |
Thanks that makes sense. |
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