Casino surveillance firm reports solid position during crisis

The Sheffield-based firm said it is closely monitoring the effect of the coronavirus pandemic on its customers, business and employees.

It said it is making necessary decisions daily to meet the evolving situation and is closely following all national government regulations and guidance wherever the company operates.

The board has taken mitigating actions to preserve the group's cash and protect the business, including temporarily reducing salaries and fees for the board and senior management team.

It is using the Government's Job Retention Scheme in order to protect jobs, with 30 per cent of the company's UK workforce furloughed in two tranches during April.

The firm has suspended all discretionary spending, recruitment and capital expenditure in addition to withdrawing the final dividend.

All the company's business units are currently operating, but at significantly reduced levels of activity in every sector and geography. Reasonable levels of design and planning work are continuing for projects now expected to proceed later in the year than originally anticipated.

David Coghlan, chairman of Synectics, said: "Synectics is a global business with a solid balance sheet, and we have taken immediate measures to contain costs and protect our financial position.

"The company fills a number of important roles in the wider security and surveillance industry. The board is determined that Synectics will maintain its skills, resources and product development momentum and, by doing so, be well-placed for new opportunities that will undoubtedly emerge as we reach the other side of the current hiatus."

The group's available consolidated net cash balance was £3.3m as of April 20, with confirmed facilities of £5m in place if required.