30th Oct 2019 10:23
(Alliance News) - Synectics PLC said Wednesday its financial year results are expected to be "materially" below expectations as UK market conditions "remain difficult".
The security and surveillance system provider said that for the year ending November 30, its core System division has performed well, but "this positive momentum has been more than offset by continued weakness in the group's UK integration businesses in security and mobile transport".
Although Synectics expected a significant improvement in revenue and profits from the Integration & Management Service division, the weak performance reported at the half year has continued instead.
"UK market conditions remain difficult and, with apparent uncertainty among Synectics' private and particularly public sector customers, the pattern of order deferrals and customer-led delays in the progress of existing contracts continues," the company said.
Although group's on-vehicle security activities were expected to deliver a positive profit contribution, with the disruption from the bankruptcy of a bus manufacturer customer and new bus registrations in the UK market continuing to be substantially down year-on-year, this will not now be the case, Synectics noted.
However, company's core Systems division, with the majority of its revenues generated outside the UK, has made solid progress throughout the year, and its results are expected to be ahead of the expectations, Synectics said.
Synectics shares were down 20% in London at 143.50 pence each on Wednesday.
By Loreta Juodagalvyte; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Synectics