Listed security technology company returns to profit

Synectics, which designs, integrates and supports advanced security and surveillance systems, is celebrating a return to second half profitability, as it publishes its final results for the year ended 30 November 2021.

The firm says it has successfully exploited opportunities in the infrastructure market, which have buoyed up its results at a time when the market for its products in the gaming industry has been hard hit by the pandemic.

Synectics’ revenues were £43.6m (2020: £44.6m) and the Sheffield-based business recorded a significant improvement in underlying losses to £0.6m (2020: £4.1 m loss).

The company, which employs more than 300 people, made a pre-tax loss of £0.6m (2020: £6.3m loss) and its order book as of 30 November 2021 stood at £28.4m (2020: £25.4m).

Paul Webb, chief executive, said: “The second half of the year saw the company return to profit, on a restructured cost base, delivering a significant reduction in losses.

“The Board is confident the company’s excellent customer relationships in attractive markets, coupled with its talented and committed teams, provide sound foundations for a strong recovery and sustained growth.”

Paul Webb

Webb added a big part of the company’s business had previously come from the casino industry, which has been closed down in large parts of the world for two years due to COVID-19.

“We saw some tentative signs of recovery in North America at the end of last year but in Asia – places like Singapore and Macau – it’s still completely shut down,” he said.

“Technically the casinos are open but no one can travel to them, so the Asia Pacific gaming market is still hugely depressed.”

He said Synectics has instead been able to focus its attention on supplying its products to infrastructure developments, with its technology being taken up by organisations such as City of London Corporation and Police, West Midlands Police and the S-Bahn transit system in Berlin.

“Infrastructure is an area where we feel there are great opportunities for us,” he said. “But the gaming market will come back also.

“It’s not just about gambling. People want to go to these casinos to be seen and to socialise, so as soon as leisure travel is allowed this market will return.

“Because of the pandemic the last couple of years have been difficult, but we now see good prospects for the future.”