Security and surveillance company to sell ‘non-core’ part of its operation
Sheffield-based Synectics, which specialises in advanced security and surveillance systems, has revealed the conditional sale of part of its business for a cash consideration of up to £200,000.
It is selling off SSS Management Services Limited – a trading entity of the Synectics Security division – to Parfas Limited.
The deal is expected to be completed on or before the company’s financial year end on 30 November 2022.
SSS provides monitoring and managed services, principally to multi-site retailers in the UK. These activities are considered by the Board to be non-core and are not part of the company’s growth plan.
Paul Webb, CEO of Synectics, said: “SSS Management Services is a unique business with a very strong management team that will thrive under private ownership.”
Stacey Anderson, managing director of SSS, added: “While our long-established business has been part of Synectics for some time, we believe we can serve our customers better as an independent privately owned business remaining true to our core values of providing the very best levels of service, independent of service providers.”
In Synectics’ last financial year ended 30 November 2021, the SSS business generated audited revenues of approximately £7m and an operating profit of less than £0.1m and, as of 30 November 2021, had audited net liabilities of approximately £1.6m.
The consideration for the deal comprises an initial cash payment on completion of £0.1m with the balance, conditional on the profitability of SSS post-sale, payable following the first anniversary of completion. The proceeds will be used for general corporate purposes.
Synectics notes the sale of SSS will strengthen its balance sheet and will make a positive impact on the company’s gross margin.