AIM-listed surveillance firm delivers ‘solid performance’
Global surveillance solutions business, Synectics, has reported a 50% increase in pre-tax profits during its 30th year and now plans to invest a further £500,000 in research and development during 2018.
The AIM-listed Sheffield firm this morning announced its final results for the year ended 30 November 2017. Its revenues stood at £70.1m, slightly down on the 2016 figures of £70.9m, while its pre-tax profits rose to £3m, up from £2m in the previous year. Its year-end order book stood at £24.4m.
Chief executive Paul Webb said: “We are really pleased with the financial results from our 30th year, especially given the challenging market conditions. We focus on the quality of our work and this solid performance reinforces the fact that people have worked hard to achieve these results.
“We provide customer driven innovation. In the coming year we will be making a significant investment in R & D and we are doing that to ensure we can continue to grow in the future.”
Webb said the further investment would be around £500,000 in 2018 and that would create a handful of new roles in the Sheffield base, where the R&D team is based, and that would focus on divisions including transport – where the firm needs to adapt and deliver technology capability and solutions for the ‘next generation’.
He added: “We are are a project orientated business and that is exhilarating.”
Webb said the decline in the gas and oil industry meant that the share of the revenues that division took up had reduced to 15%, where as in previous years it was up at 30%. He added: “Over the last four years, we have invested in areas such as transport and infrastructure. We are pleased to have delivered a solid performance against a backdrop of economic and political challenges.”
Chairman David Coghlan added: “I am pleased to say that during my engagement across the various parts of the business in 2017 I found a high degree of alignment around the enduring purpose and values of Synectics.
“The core elements are, and have been for 30 years, value to customers and innovation. I believe these will remain the foundation for a sustainable and prosperous future for the Company.”
During the 2016/17 financial year, the Group’s results continued to reflect the impact of the 2015 collapse in global oil & gas prices on one of our largest customer sectors. Management has taken action to maintain profitability in that area by reducing costs, and delivered a very creditable increase in operating margin in our oil & gas activities last year.
Coghlan added: “We expect the trend of growing profitability of our business operations to continue in the current financial year. In addition, opportunities have been identified for innovative development of our core product set, using emerging technology applications being introduced in other fields to expand Synectics’ offerings to its current markets.”
