Synectics: Sheffield security systems firm to pay first dividend in five years after uplift in profit and revenue

Sheffield-based security systems firm Synectics is set to pay out its first dividend in five years after the company saw an uplift in both revenue and profits for the first half of the financial year.

The company, which manages security systems for oil and gas infrastructure sites, casinos, stadiums and tourist attractions, saw revenues increase by 20 per cent to £26.3m for the six months ending May 31, a jump from £21.9m the year prior.

This resulted in what the firm described as a “significant uplift” in underlying operating profit to £2.2m, up from £0.8m in the first six months of 2023 and reflecting an increase of 183 per cent.

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Gross profit for the company increased 23 per cent to £11.2m, with underlying earnings before interest, taxes, depreciation, and amortisation also up 67 per cent to £2.8m.

Synectics manages security systems for oil and gas infrastructure sites, casinos, stadiums and tourist attractions.Synectics manages security systems for oil and gas infrastructure sites, casinos, stadiums and tourist attractions.
Synectics manages security systems for oil and gas infrastructure sites, casinos, stadiums and tourist attractions.

The firm has announced that due to its positive results, its board has declared a re-instated interim dividend of 2.0p per share to be paid to shareholders next month. The payment marks the company’s first interim dividend to be paid out since 2019.

Synectics said its performance was built on a “strong opening order book” and as a result of the early delivery of several high-margin projects by its Systems division.

Speaking on the results, Paul Webb, chief executive of Synectics, said: “Last year's results were underpinned by a strong oil and gas market, but we’re seeing some recovery in the gaming market and other sectors as well this year, so it feels like things are in good shape.

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“The operational gearing is coming through as well, not just with revenue increases but with significant increases in profitability.

“It's a strong first half, and we habitually have much more heavily weighted second half results, so we’re really pleased with the performance and are comfortably in line to meet market expectations for the year.”

Analyst consensus immediately before the company’s announcement for the year ending 30 November 2024 was revenue of £52.9m and adjusted profit before tax of £3.5m.

Synectics also ended the financial period with an increased order book, standing at £30.2m, up from £28.4m in May 2023 and £29.2m in November of 2023.

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Last month, the firm announced that it had secured a significant $10m (£7.9m) contract for a high-profile Asian gaming resort, which the company expects to deliver in 2025.

Mr Webb said the contract was with “one of the largest, most iconic casino resorts in the world”, which the company had been working with for almost ten years. The firm has committed to a major expansion and upgrade project with the resort.

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