Synectics helps boost growth at Quadnetics
WINS in the North Amercian gaming market by the Yorkshire arm of surveillance technology firm Quadnetics has helped the group to grow profits.
Synectics Network Systems (SNS) provides specialist video-based electronic surveillance systems and technology globally to end customers with large scale high security requirements, particularly for critical infrastructure protection.
It is co-located in Quadnetics’ Sheffield facility with its Synectics Technology Centre, which provides R&D, products and systems expertise to each of the other divisions within the group.
Chief executive John Shepherd belives the technology centre gives the group further opportunities for growth as more hardware and software products can be developed.
Revenues within SNS for the 18 months to November 30 rose by £2m to £12.7m and operating profit was £1.9m, up from £1.5m.
“The primary source of growth was the North American gaming market, which had been significantly affected by the recession but recovered well during 2010,” said chairman David Coghlan.
However, Mr Coghlan said the re-organisation of Quadnetics’ activities in the Middle East under SNS, and increased resource dedicated to the region, held back the division’s profits in the period.
He added: “This is an important market for Quadnetics, and the increased investment is expected to bear fruit in the current financial year.
“Synectics continues to win projects and deliver systems for protecting important high security assets around the world, including the London Borough of Lambeth, Durban City (World Cup), the Stratosphere Las Vegas Casino, the Atlantis Hotel Dubai and a major UK bank. Further growth is expected in the current financial year.”
Quadnetics posted profit before tax for the 18 month period ended November 30 to £1.2m, up from £500,000 over the 12 months ended May 31, 2009.
Mr Shepherd added: “It is pleasing to see the results of integrating and refocusing the business starting to bear fruit. The significant profit improvement compared to the prior year has been delivered in spite of a 5% reduction in sales.
“This is in line with our stated aims of striving to increase both absolute profit and return on sales. As we continue to focus on selling higher margin integrated systems in our chosen niche markets, we expect this profit trend to continue.
“The significantly reduced overhead cost means that we will be able to take advantage of improving global market conditions to deliver higher profit margins.
“In our July statement I promised that we would increase our pace of innovation and this has resulted in the launch of three new market leading product families.
“The establishment of the Synectics Group Technology Centre at our Sheffield facility will enable us to develop more common-core hardware and software products which we can exploit in many different market opportunities. The higher order book gives confidence for further improved performance in 2011.”
