Synectics records '˜very strong' performance in gaming sector

SURVEILLANCE firm Synectics said it had produced a solid performance in the first half of the financial year, as it continues to invest in its research and development (R&D) centre in Sheffield.

By The Newsroom
Tuesday, 17th July 2018, 1:48 pm
Updated Tuesday, 17th July 2018, 1:52 pm
Paul Webb chief executive of Synectics
Paul Webb chief executive of Synectics

Synectics said its first half result was in line with the company’s plans. The group’s revenues and profit contribution from global gaming surveillance systems grew significantly in both the United States and Asia, which Synectics said demonstrated its continued leadership in the sector.

At the end of the half, Synectics’ Gaming business received a “notable order” valued at around $5 million US dollars for a new resort and casino development in Boston in the US.

In a statement, the company said: “In the high security sector, it was particularly pleasing to see a number of new contract awards strengthening Synectics’ position in security systems for very high profile or sensitive sites in the UK.

“The recent contract to enhance security provisions at a prestigious high-profile landmark in central London joins projects for Westminster Abbey, the British Museum, the Victoria & Albert Museum, a major utilities operator, nuclear installations, financial institutions and other high security premises.

“The progress in both of these areas underlines the benefits of our strategic focus on sophisticated high-end customers with specialist security and surveillance needs.”

The company said it also sees opportunities to capitalise on emerging software technology applications to strengthen Synectics’ position at the front of the market for complex surveillance services. It has continued to increase its investment in product and business development accordingly.

Synectics’ revenue for the first half increased by 3 per cent to £34.7 million, compared with £33.7 million in the same period last year.

The group’s interim consolidated underlying profit rose by 12 per cent to £1.5 million.

Commenting on the results, Paul Webb, the chief executive of Synectics, said: “These solid interim results were underpinned by a very strong performance in the gaming sector.

“We expect that the results for the full year will be in line with market expectations.

He added: “Building on our 30 years of customer-driven innovation, we continue to adjust our product and business development activities towards the emerging needs and opportunities we see in both our established and developing market segments.”

Earlier this year, the company revealed that it was investing a further £500,000 in its R&D centre in Sheffield, which currently employs around 40 people.

Mr Webb said that Sheffield continued to provide a good talent base for the company.

In the oil and gas surveillance sector, the company reported that the level of enquiries and quotes had picked up significantly “with the global oil price having recovered to a level supporting renewed capital investment by customers”.

This increased activity is expected to feed through to growth in Synectics’ revenues from 2019. Orders were received in the period for customers operating in the Gulf of Mexico, the Middle East, Central Asia, the Far East and Africa.

The statement added: “The division continues to enhance its specialised Ex-rated product suite, and we believe Synectics is well positioned for the coming market recovery.

“The UK bus and coach market, where we have a strong footprint, remained weak, with new UK vehicle registrations down significantly on last year.

“This was reflected in a lower contribution from Synectics’ on-bus surveillance systems activities.”