Optimistic forecast for security systems provider

Synectics, which designs, integrates and supports advanced security and surveillance systems, says it continues to look forward to a “solid improvement” in trading results across this year.

The Sheffield-headquartered business has published a statement from its chairman, David Coghlan, which will be formally delivered at its AGM today.

Coghlan says the company’s trading in the first quarter of the new financial year was in line with the Board’s expectations.

Its systems division has begun the financial year slightly ahead of the Board’s expectations, mainly as a result of an improved contribution from public space and infrastructure security systems in the UK, including a National Grid contract which was announced recently, and also encouraging progress in global Oil & Gas markets.

While the Security division has had a slower start to the financial year, with several projects experiencing client-driven delays, these are expected to be recovered later this financial year.

Coghlan says the company’s consolidated order book as at 31 March 2022 was approximately £29m (30 November 2021: £28.4m) and the Group’s balance sheet remains strong with net cash of approximately £3.9m at 31 March 2022 (30 November 2021: £4.6m).

He adds: “Activity in Synectics’ main regional markets has continued the pattern shown in the second half of the last financial year with continued modest recovery in the UK and Europe, the pipeline of expected orders in North America progressing steadily, and Asian markets remaining subdued, but with some evidence that these look likely to turn by early next year.

“These trends underpin the Board’s continued expectations for a solid improvement in trading results across this year, particularly in the second half.”