19th Jul 2016 09:26
LONDON (Alliance News) - Synectics PLC on Tuesday said it swung to a profit in the first half of its financial year as it announced the signing of three new contracts.
The surveillance technology and security systems provider said it made a pretax profit of GBP271,000 in six months ended May 31, having suffered a GBP134,000 pretax loss in the first half of the prior year.
Profit benefited from lower exceptional costs, which decreased to GBP131,000 from GBP639,000, but revenue slipped slightly to GBP32.1 million from GBP32.6 million as growth in the Integration & Managed Services division was offset by a decline in the Systems division.
This came despite the order book increasing to GBP35.7 million from GBP32.1 million.
"We do not currently see any direct risks to the group from a potential change in the UK's relationship with the EU. If the current lower level of sterling persists we will see some limited benefit in the translation of the group's foreign currency earnings, and in the competitiveness of our sterling-based exports. Obviously, though, the board is keeping a close eye on any risks or opportunities that may emerge," Chairman David Coghlan said in a statement.
"Based both on the recent growth of the group's firm order book, and on a strengthening pipeline of probable new business, the board continues to anticipate substantially increased profitability in the second half, with results for the full year in line with market expectations," he added.
In a separate statement, Synectics said it has secured three new contracts at an estimated combined value of GBP8 million, to be implemented between now and September 2018.
The first contract is with Las Vegas Gaming Resort, under which Synectics will provide the resort with its Synergy 3 command & control platform including newly-developed third-party integrations, enhanced mapping for precise gaming floor layout and data-driven security process automation.
The second contract is an extension on Synectics' current contract with bus operator Go-Ahead to September 2018, under which Synectics will continue to provide Go-Ahead with surveillance systems and support.
The third contract is with an unnamed mainline trainline operator, for which Synectics' integration business Quadrant Security Group will replace and maintain the CCTV infrastructure at nine mainline stations.
Shares in Synectics were trading up 8.7% at 172.25 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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