Synectics PLC - Trading Update
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("Synectics" or the "Company" or the "Group")
Synectics plc (AIM: SNX), a leader in the design, integration and support of advanced security and surveillance systems, provides the following update on trading.
The global Covid-19 pandemic has continued to impact activity across all of Synectics' markets, but has particularly affected its largest market sector, global casinos and gaming, where the recovery in the second half of the Company's financial year is now unlikely to take place as previously expected.
Trading and forecasts in other sectors of the Group's business have, in aggregate, remained largely in line with the Board's previous expectations. However, the ongoing interruption to gaming activity around the world means that consolidated revenues and underlying results in the second half of the Group's financial year to
The Company had expected that easing of travel restrictions and the re-opening in early summer of casinos in the US and
Progress on the large and strategically important command and control system contract for the Berlin S-Bahn has been good. The first two customer milestones have been met and the project is on track for live operation in
Work is progressing as planned to consolidate the operations of Synectics' Integration and Managed Services division, as reported in the Company's interim statement on
Given the increased uncertainty in the timing of market recovery from Covid impacts, management's forecasts and plans are now based on the assumption that demand in affected sectors will remain weak for some time to come.
Synectics' priorities continue to be: to protect the health and well-being of its employees and customers; to provide ongoing support to its customers; and to manage the business for the long term by prudent actions to preserve cash and maintain the employee skill base essential to develop, sell, deliver and support its core technology and services.
Much attention is being paid to balancing and securing these objectives.
The Group's net cash balance as at
The Company will issue a further trading update in early December following its year end.
"With our ongoing investment in advanced product development and deep customer relationships, Synectics is well positioned across our global markets for long-term success. Given the impact of Covid-19 across many of the sectors we work in, our focus has been to support our customers and people, while acknowledging the inevitable impact this has had on our short-term trading and financial performance.
"We remain confident in our long-term growth prospects as our software and technology capabilities continue to open up new opportunities in evolving markets for our security and surveillance technology."
About Synectics plc
Synectics (AIM: SNX) is a leader in the design, integration and support of advanced security and surveillance systems that enable clients around the world to protect their people, communities, and assets.
Founded over 30 years ago, Synectics has deep industry experience across gaming, energy, urban transport, public space and critical infrastructure projects. The group's expert engineering teams work in partnership with customers to create integrated product and technology platforms, proven in the most complex and demanding operating environments.
Find out more at www.synecticsplc.com.
For further information, please contact:
Tel: +44 (0) 1527 850 080
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Tel: +44 (0) 20 7408 4050
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Quick facts: Synectics
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