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(Sharecast News) - Synectics said on Monday trading in the first five months of its financial year was broadly in line with management expectations, supported by contract wins in gaming, transport, public space and critical infrastructure, although energy sector decisions remained uncertain.
The AIM-traded security and surveillance specialist said activity had remained positive across several core markets in the year ending 30 November 2026.
In leisure and hospitality, Synectics said it had seen strong order intake in the North American gaming market and had secured several new customers.
That included its largest contract win to date in Canada, where its surveillance system was selected for a large-scale casino and integrated resort in Ontario.
The group also won additional work with new and existing customers across critical infrastructure, public space and transport.
Recent contract wins totalling more than 1.4m with a UK regional authority will cover around 220 buses and are aimed at improving operational efficiency and passenger and driver safety.
Synectics said some energy sector customers had delayed project and infrastructure investment decisions against a backdrop of geopolitical uncertainty, although the scale and quality of those opportunities were unchanged.
It said the timing of some energy contract awards and project activity was therefore unclear.
Revenue and profitability for the full year are expected to be weighted to the second half, in line with the group's usual trading profile.
Subject to energy sector activity normalising in the second half, the board expects trading for the year to be in line with market expectations, which it said were revenue of 62.0m and adjusted EBITDA of 4.1m.
The company said it was making progress with its strategic transition, including simplifying Synergy deployment, developing its partner programme, strengthening its go-to-market strategy and reviewing its operating model.
The initiatives would be funded from existing cash resources.
Chief executive Amanda Larnder said Synectics had secured important customer wins in the first five months of the year, adding that the group's pipeline remained encouraging despite uncertainty around the timing of some energy sector contracts.
"We have made clear progress in reshaping the business, with early signs that these initiatives are already supporting improved commercial execution, including better customer engagement and more efficient delivery," she said.
"We are focused on delivering a more scalable, repeatable model that can support stronger and more consistent growth over time."
At 1210 BST, shares in Synectics were down 16.93% at 170.3p.
Reporting by Josh White for Sharecast.com.
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