Casino growth helps offset oil & gas woes for security group

WARWICKSHIRE security and surveillance business, Synectics has said it expects full year results to be in line with expectations, with revenues showing a near £3m increase.

The Studley-based firm, which designs, integrates, controls and manages advanced surveillance technology and networked security systems, said in a trading update that revenues for the year ended November 30, 2016 were likely to be approximately £71m, up of the £68.5m achieved in the prior year.

Net cash at year-end was approximately £2m, up from £0.5m at the prior year end.  It said the cash inflow was achieved despite high levels of activity in the final two months of the financial year which meant that short term levels of customer receivables and accrued revenue by year-end were abnormally high.  This is expected to unwind in the first few months of 2017.

One sector where the business continued to struggle is oil & gas sector. It said that while market sentiment seemed to be improving, it did not expect a resumption of significant growth in the sector before 2018.  

“During the year, we reduced our manufacturing capacity in this sector to reflect market conditions, whilst continuing to retain capability,” it said.

In contrast, Synectics’ revenues from surveillance systems in the gaming industry enjoyed an exceptionally strong year, with two major new-build casino projects being delivered in the Far East.

Trading in other sectors during the year was generally solid, and market conditions are said to remain positive.  

It said further integration of Synectics’ product portfolio, development and sales activities across its transportation and critical infrastructure businesses had positioned the group well for future growth.

The group’s final results for the year to November 30, 2016 will be released on or around February 21, 2017.