Synectics shares were up 0.9% to 106p in early afternoon trading on Tuesday, following the company’s trading report for HY1 2022, in which the group confirmed continued momentum in its major end-user markets including oil and gas, and US gaming.
The security and surveillance systems firm commented that recovery was less evident in sectors such as casinos and gaming resorts in the Asia-Pacific region, as a result of subdued leisure-related travel.
Synectics mentioned trading was in line with management expectations, with a positive turnaround from the same term last year.
The company highlighted a revenue climb of 20% in its core system division, which reportedly drove its strong results as markets hit by the Covid-19 pandemic began to recover.
However, its UK-centred integration division Synectics Security saw a fall in revenue on the back of customer-led delays on several important projects that had been scheduled for completion over the period.
Operating profits were projected to hit a similar level to the company’s seasonally strong HY2 2021, with a profit of £400,000 compared to an operating loss of £800,000.
The firm noted revenues of approximately £23 million against £22 million in HY1 2021, with net cash of £3.9 million at 31 May 2022.
Synectics confirmed progress on its large advanced infrastructure surveillance projects, including Deutsche Bahn in Berlin, and the Cloud-based deployment of Synergy for the City of London Corporation and the City of London Police, which act as important reference sites for the group’s core advanced technology.
The firm commented that it expected further acceleration in its progress over HY2 2022.
“A strong team performance has meant we have been able to deliver our goals for this period despite increasing challenges in the supply chain and with markets still subdued,” said Synectics CEO Paul Webb.
“We have all been working through our ‘return to work’ challenges, and are in good shape now to push on together and deliver further improved results in the second half of this financial year and beyond.”