Security specialist hit by pandemic’s impact on casino and gaming market

Advanced security and surveillance business, Synectics, says the pandemic has affected activity across all its markets.

It says this has particularly been the case with its largest market sector – global casinos and gaming.

The listed Sheffield-based company has published a post-close trading update for the financial year ended 30 November 2020. 

It explains trading has continued largely in line with the Board’s revised expectations as set out in the company’s update released on 29 September 2020.

Underlying results for the second half of the Group’s financial year ended 30 November 2020 are now expected to be broadly similar to those in the first half.

Its latest update notes: “Disruption to gaming activity across all regions has had a more prolonged adverse impact on the Group’s revenues than customer projections during the summer had led the Board to expect at that time.  

“However, trading and forecasts in other market sectors have continued to be largely in line with the Board’s expectations.

“Given the ongoing uncertainty in the timing of market recovery from Covid-19 impacts, the Board’s forecasts and plans continue to be based on the assumption that demand in affected sectors will remain weak in the near-term, though clearly more optimistic scenarios are possible.”

Synectics has restructured its Systems division to improve customer support and cut the overall cost base of global operations.

Paul Webb

Also, work has progressed on consolidating the operations of Synectics’ Integration and Managed Services division, which was completed on 1 December 2020. 

This consolidation has included the closure or downsizing of several operating sites, with a consequent fall in costs and a sharpened focus on specialised and long-term customers

The costs of restructuring both the Group’s divisions have come to about £2m, with annual cost savings estimated to be approximately £2.4m.

Synectics’ net cash balance as of 30 November 2020 was £6.9m (30 November 2019: £3.6m), with additional undrawn bank facilities of £5m.

Paul Webb, chief executive, said: “With our ongoing investment in advanced product development and deep customer relationships, Synectics is well positioned across our global markets for long-term success.  

“We remain confident in our growth prospects as our software and technology capabilities continue to open up new opportunities in evolving markets for our security and surveillance technology.”