US casino delays hit security systems supplier

SYNECTICS, the Sheffield-based security network products and software division of surveillance technology firm Quadnetics, has continued to experience delays from North American casino customers because of the downturn.

The security technology division, which also provides hazardous area systems and defence surveillance technology, said in many cases it was the sole provider of services to casino operators but said that a number of large contracts would not be delivered within its current financial year.

Nottingham-based Quadnetics said its annual results would be hit as a result of the delays.

The group said a restructuring of the business was taking place as planned including “the consolidation” of its security integration business, based in Nottingham and Watford, which employs approximately 160 people.

The manufacturing activities of Synectics’ defence business, based in Tewkesbury, have been successfully moved into the group’s main manufacturing site at Brigg in North Lincolnshire.

Synectics’ operations in the Middle East have also been consolidated, with the moves predicted to hit performance in the current financial year. But Quadnetics said Synectics’ security systems were becoming “increasingly attractive” in the Middle East.

Quadnetics said today: “With the exception of the North American gaming surveillance market, trading so far this year has been in line with these expectations.

“….The indications of strong market acceptance of the new Synectics product suite, and the increased capability, scalability and cost-effectiveness of the new organisation structure, give the board confidence that the group will deliver the expected growth in both revenue and margins in the second half of this year and beyond.”

Quadnetics also said it was to extend its financial year to November 30 2010.