Improved trading results anticipated at security and surveillance company
Advanced security and surveillance systems business, Synectics, says its order book is now significantly ahead of where it was in 30 November 2022.
It has published its Annual General Meeting statement, in which chairman Craig Wilson, notes trading in the first quarter of this financial year has been in line with the Board’s expectations, with forecasts for the year remaining unchanged.
Synectics’ Systems division has begun FY2023 slightly ahead of expectations, mainly as a result of strong performance in the oil & gas sector which is expected to continue.
While the Sheffield-headquartered company’s Security division has seen a slow start to the financial year, it has a number of project opportunities that are expected to be realised during FY2023.
Meanwhile, activity in the oil & gas sector has been particularly strong, and in addition to a significant contract win revealed on 13 April 2023, a number of other valuable projects have been secured for the company’s specialist COEXTM camera stations.
Project delivery cycles in the oil & gas sector tend to be longer due to the manufacturing cycle, so Synectics explains most of this revenue will be realised in the second half of FY2023.
Wilson said: “The current pipeline of oil & gas opportunities extends well into 2024, and the company has already begun gearing up supply chain and production capacity in line with expected increased demand later in this year and beyond.
“In the gaming sector globally, whilst interest and activity levels continue to increase, expected projects and orders are still experiencing delays. Other markets continue to perform in line with the Board’s expectations.
“The company’s consolidated order book is now significantly ahead of that at 30 November 2022 and its balance sheet remains strong with net cash slightly ahead of the position at the company’s year end.
“The company’s cash position is now projected to be stronger at 31 May 2023 than previously expected despite planned and well managed increased levels of working capital.”
He added the Board is looking forward to a solid improvement in trading results this year.
But as previously highlighted, timing of projects coupled with longer lead-times mean results for FY2023 are now anticipated to be more heavily weighted to the second half of the year than previously expected.
