24th Feb 2016 09:05
LONDON (Alliance News) - Surveillance technology and networked security systems company Synectics PLC on Wednesday returned to the dividend list, as it returned to profit in its last financial year and said it has won a surveillance contract for a new Philippines casino.
Synectics said it swung to a GBP500,000 pretax profit in the year to the end of November, compared to a GBP3.7 million loss a year earlier, when it had been hit by a challenging oil and gas market, management failings in its Integration & Managed Services business, and increased costs and operational gearing as a result of investments which were meant to support growth.
Revenue rose to GBP68.5 million, up 6.0% year-on-year from GBP64.6 million, though the group closed the year with a smaller order book than a year prior, at GBP26.6 million compared to GBP28.6 million.
Synectics said "substantial improvements" were achieved in its Integration & Managed Services unit, with solid organic growth and margins, while its mobile systems transport arm also performed very well. Oil and gas-facing businesses, however, continue to struggle amid the sharp downturn in activity in that industry.
In response to the improvements, Synectics restored a "modest" dividend for the year, declaring a final dividend of 1.0 pence per share, having not paid out at all the year earlier.
"On the back of this hard fought year, I am really pleased we have been able to return the business to solid profitability and significantly strengthen its cash position. Collectively, we have worked hard to achieve this but it has not been without its challenges," said Chief Executive Paul Webb.
"Given the current uncertainty of some of the markets in which we operate, this is a good result and, on the back of recent contract wins, we look forward to a year of continued progress," he added.
In a separate announcement on Wednesday, Synectics said it has secured a multi-million pound contract to provide an integrated surveillance system for a new casino resort under construction in the Philippines.
Synectics did not name the client or provide specific financial details on the contract, but said the system will be installed in 2016 ahead of the first phase of opening of the resort towards the end of the year.
Synectics shares were down 15% to 117.00p on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Synectics