8th Jul 2025 14:29
(Alliance News) - Synectics on Tuesday said it will meet market expectations for its annual results amid a "solid order book", as it posted a profit jump in its first financial half.
The Sheffield, England-based provider of advanced security and surveillance systems said pretax profit jumped 69% to GBP3.0 million in the six months to May 31, from GBP1.8 million a year prior.
Revenue rose 35% to GBP35.5 million from GBP26.3 million.
The company has a focus on five sectors: critical infrastructure, energy, public space, transport, and leisure & hospitality.
"Within the energy sector, we continue to see stable demand across our customer base, particularly in the floating liquefied natural gas and floating production storage & offloading markets," Synectics said.
The company said in transport, demand was driven by the shift to IP-based systems, increased investment in electric vehicle fleets, and the need for connected technologies.
The firm added: "In critical infrastructure, revenue growth during the period was primarily driven by delivery of large projects with National Grid."
Cost of sales increased 39% to GBP20.9 million from GBP15.1 million, while operating costs came in 24% higher, at GBP11.6 million compared to GBP9.4 million.
Synectics declared an interim dividend of 2.2 pence per share, up 10% from 2.0p a year ago.
Looking ahead to the current financial year ending on November 30, the company said it trades comfortably in line with market expectations.
It said market consensus was a revenue of GBP65.0 million, up 16% from the GBP55.8 million it had reported for financial 2024.
Further, financial 2025 market expectations are for an adjusted pretax profit of GBP5.3 million before share-based payments. For financial 2024, Synectics had posted an underlying pretax profit of GBP4.7 million.
Chief Executive Officer & Chief Financial Officer Amanda Larnder said: "Synectics has delivered strong financial results for the first half, underpinned by the planned delivery of a major customer contract which contributed to meaningful growth in both revenue and profit. We are seeing encouraging early progress of our refreshed strategy, including building activity in our core sectors, strengthening our partner network, and continuing to invest in technology capability to support long-term growth. With a solid order book, a strong cash position and a clear focus, we are well placed to deliver on our longer-term priorities."
Synectics shares rose 2.8% to 336.80 pence each on Tuesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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