25th Feb 2020 10:55
(Alliance News) - Surveillance systems provider Synectics PLC on Tuesday reported a full-year earnings fall amid "difficult market conditions" in the UK.
Revenue in the year ended November 30, 2019, fell by 3.8% to GBP68.5 million from GBP71.2 million, with pretax profit slipping by 24% to GBP1.6 million from GBP2.1 million.
The company said its full-year numbers fell short of original expectations but were in line with revised forecasts. In October 2019, Synectics warned its full-year results would be "materially below market expectations".
Synectics on Tuesday said the primary factors affecting the annual outcome were a continued contraction in the UK passenger bus market and a slowdown in contract awards in the UK security integration sector.
The company edged its full-year dividend 2.1% higher to 4.8 pence per share from 4.7p.
Chief Executive Paul Webb said: "Our investments continue to deliver good progress in our international systems business. However, difficult market conditions for our UK integration business meant that results overall were in line with revised market expectations."
The company entered financial 2020 with an order book worth GBP32.7 million, 56% higher year-on-year.
Synectics also expects "reduced uncertainty in the UK economy, and expanding opportunities in our target markets" in the current financial year.
The firm also announced that it has settled a legal claim related to an employee's dismisal in late 2018. The claim stated the company employment law in the US state of California.
"Initial legal advice to the company suggested that the claim in total should be settled for a moderate sum close to the amount of contractual remuneration due to the employee on termination. After involvement of the company's insurers, and following mediation under California law, a full and final settlement agreement was entered into by the parties on February 24," Synectics explained.
The firm made a provision of GBP908,000 in relation to the claim.
Shares were trading 5.6% lower at 152.00 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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