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Synectics narrows losses in 'subdued' first half

Mon 14 June 2021 15:42 | A A A

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(Sharecast News) - Security and surveillance technology company Synectics updated the market on its first half on Monday, reporting that trading continued at similar levels to the first half of the prior year, delivering a "much reduced" estimated operating loss of around £0.8m, narrowing from £2m year-on-year.

The AIM-traded firm said that was on revenues of around £22m for the six month period ended 31 May, broadly in line with the £23m it reported a year ago.

That performance followed action taken last year to reduce the group's operating cost base.

The company said its cash position remained "sound", with net cash of £3.5m at 31 May, down from £4.5m at the end of the first quarter.

"Activity in public infrastructure and transportation in the UK and Europe held up relatively well, but the continued impact of global travel restrictions on casinos and gaming resorts in Asia-Pacific and the United States meant that revenues remained subdued in what was, pre-pandemic, Synectics' largest market sector," the board said in its statement.

"There are some early signs of increased customer activity in the gaming sector in both Asia and the United States, from which the board expects to see some recovery in orders received by the company in the second half of this financial year."

Synectics said its major strategic focus was on integrated software control systems for "substantial" smart city and infrastructure implementations.

"In this area, good progress was made on the large project for the City of London Corporation and City of London Police, announced on 7 April.

"Deployment of Synectics' innovative hybrid cloud-based Synergy command and control system commenced during the period, and is planned to continue into 2022.

"The major project for security command and control on the S-Bahn rail network in Berlin has continued its roll-out across the network and delivery will be completed in this financial year."

Those successful projects were expected to act as "key references" for similar initiatives elsewhere, and were already generating significant interest, the directors claimed.

"Synectics will provide a further update with the announcement of its unaudited interim results for the six months ended 31 May on 13 July when, as previously announced, the board is planning to reinstate guidance on future trading."

At 1510 BST, shares in Synectics were down 3.11% at 130.8p.

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