Synectics: Yorkshire firm says energy companies delaying investments due to ‘geopolitical uncertainty’
Yorkshire-based security systems firm Synectics has said it is seeing energy compaies delay investment decisions due to geopolitical uncertainty.
The Sheffield-based company said the move had created uncertainty on contract awards and project activity in the sector.
Synectics works with a number of oil and gas firms including Shell, BP and Chevron, providing surveillance cameras and security systems.
The firm said in an announcement to the London Stock Exchange: “Within the energy sector, against a backdrop of ongoing geopolitical uncertainty, some customers have delayed project and infrastructure investment decisions although the scale and quality of these opportunities remain unchanged.
“As a result, the timing of certain contract awards and project activity in the energy sector is unclear at this stage.”
Synectics said that subject to energy sector activity normalising through the second half, its board currently expects trading for FY 2026 to be in line with market expectations.
It comes as the oil and gas sector faces continued disruption due to the effective closure of the Strait of Hormuz.
Synectics added that its trading in the first five months of the year had been “broadly in line with management expectations".
The firm said it had seen strong order intake in the North American gaming market and secured contracts with several new customers. This included the company’s largest contract win to date in Canada, with its surveillance solution selected for a large-scale casino and integrated resort in Ontario.
Synectics said it had also secured additional contracts with both existing and new customers across its critical infrastructure, public space and transport sectors.
These include recent contract wins totalling over £1.4m with a UK regional authority, covering approximately 220 buses.
Amanda Larnder, Synectics' chief executive officer, said in a statement: "Synectics has secured important customer wins during the first five months of FY 2026 and it is particularly encouraging to see this momentum that we're building with new and existing customers.
"Management continues to closely monitor the current geopolitical backdrop particularly given the company's exposure to the energy sector.
“Whilst the timing of some customer investment decisions and contract awards is currently uncertain, our underlying new business pipeline remains encouraging.
"The board remains confident in the group's strategic direction and the progress being made to position the business for more scalable and sustainable growth."
The company is set to publish unaudited interim results in August.
The announcement came as Synectics also announced that Bob Holt OBE had informed the board of his intention to step down as non-executive chair.
The firm said the move reflects Mr Holt’s “increasing commitments” to EARNZ plc, where he is a significant shareholder and chair.
Mr Holt has a notice period of six months and will remain in the role in the interim while the company launches a search for his successor.