Synectics plc (AIM: SNX), a leader in the design, integration, control and management of advanced surveillance technology and networked security systems, reports its audited final results for the year ended 30 November 2018.

Headlines:

• Revenue £71.2 million (2017: £70.1 million)
• Underlying profit¹ £2.9 million (2017: £3.0 million)
• On a constant currency basis, revenue £72.3 million and underlying profit £3.1 million
• Profit before tax £2.1 million (2017: £2.5 million^*), after mostly non-cash non-underlying costs of £0.7 million in mobile systems business area
• Continued investment in technology development of £3.1 million (2017: 2.6 million)
• Net cash at 30 November 2018 £8.1 million (2017: £3.8 million); no bank debt
• Underlying diluted EPS² 12.6p (2017: 15.2p)
• Diluted EPS 9.1p (2017: 12.4p^*)
• Return on average capital employed 8.6% (2017: 8.7%^*)
• Year-end order book £21.0 million (2017: £24.4 million)
• Recommended final dividend of 3.5p per share (2017: 3.0p) giving total dividend payable for the year of 4.7p (2017: 4.0p)

¹Underlying profit represents profit before tax and non-underlying items (which comprise UK mobile systems restructuring costs and stock write-down, and amortisation of acquired intangibles).

²Underlying earnings per share are based on profit after tax but before non-underlying items.

^*Restated. See note 3

Commenting on the results, Paul Webb, Chief Executive, said:

“A strong performance in the Gaming sector offset by weak performance in the UK bus market produced a satisfactory result overall.

The pipeline of identified new business that the Group expects to win and deliver in 2019 is strong, and we expect to benefit from growing momentum in certain market sectors.

We are laying the foundations for an ambitious growth strategy that we believe will take the Company to new levels over the coming years.”

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