Synectics Plc (LON:SNX), a UK-based leader in advanced security and surveillance systems, has reported a robust set of interim results for the six months ending 31 May 2025, reinforcing its standing in the market and strengthening confidence in its full-year performance. With its innovative technology solutions and focus on critical sectors such as gaming, transport, energy, and public space, Synectics continues to make impressive strides under the guidance of CEO Amanda Larnder.
Shore Capital’s recent update, led by analyst Rob Sanders, underscores the company’s steady growth trajectory and solid financial positioning. Sanders notes, “Trading remains comfortably in line with FY 2025 market expectations.” This assurance from the Board comes on the back of a half-year performance that reflects a well-executed strategy and operational efficiency.
FY25 Interim Financial Highlights
Synectics’ half-year results present a picture of strength and resilience:
- Revenue surged 35% to £35.5 million, up from £26.3 million in H1 FY24.
- Adjusted EBIT climbed 48% to £3.3 million, compared to £2.2 million in the same period last year.
- Net cash at the end of May 2025 stood at £12.1 million, significantly higher than the £6.4 million reported a year ago.
- The interim dividend was raised by 10% to 2.2p per share, reflecting the Board’s confidence in ongoing cash generation.
These numbers are underpinned by a rising order book, which reached £35.1 million at the end of May 2025, up from £30.2 million a year prior. Of particular note is a major contract with a leading gaming resort in South-East Asia. This high-profile deal involves upgrading to Synectics’ latest Synergy command and control platform, with completion anticipated by year-end.
Recent Contract Wins Signal Strategic Progress
Further solidifying its global reach, Synectics recently announced two gaming contracts worth approximately US$3.0 million. The first, valued at US$2.5 million, has been awarded by a world-class integrated casino resort in Entertainment City, Manila—an existing customer since 2016. This project includes a major upgrade of Synectics’ proprietary Synergy software and a refresh of the video surveillance infrastructure. Most of the work is expected to be completed in the current financial year, enhancing the system’s performance and scalability.
Additionally, Synectics has secured its first contract with a tribal gaming property in Oklahoma, North America. Valued at US$600,000, this engagement will see Synergy software deployed across the site, incorporating AI-driven monitoring and real-time alert features. Amanda Larnder commented, “We are pleased to secure these contract wins in both Asia and North America. The upgrade at a world-class resort in Manila reflects the strength of our long-term customer relationships and the ongoing investment by major operators in Synergy’s mission-critical solutions. Whilst the tribal gaming contract in Oklahoma marks both an important entry into a new market and an early deployment of Synergy’s new AI tools. These orders further underpin the Group’s revenue in the current financial year.”
Establishing a Track Record of Outperformance
The consistency of performance is becoming a hallmark of Synectics. After exceeding expectations in FY23 and FY24, the company has again delivered a strong first half in FY25. Rob Sanders highlights this point, stating, “Having significantly beaten our initial adj. PBT expectations in FY23A and FY24A, Synectics has now reported a strong H1 FY25F.”
Shore Capital’s unchanged forecasts for FY25, FY26, and FY27 reflect confidence in the company’s strategic initiatives and operational execution. The substantial cash reserve supports ongoing investment in business development, which is critical as Synectics eyes expansion into adjacent sectors and geographies through a growing partner network.
Strategic Execution and Market Expansion
Synectics is executing a focused strategy centred around four key priorities:
- Expanding presence in core and adjacent markets.
- Investing in technology to deliver innovative, customer-centric solutions.
- Enhancing customer relationships through consistent service and trust.
- Developing a global partner network to broaden reach and scale growth.
The company’s recent results suggest these priorities are translating into tangible performance improvements. For example, within its Systems division, Synectics reported 35.8% revenue growth in H1 FY25F. The division also maintained strong gross margins of 47.4%. The Ocular division delivered 29.3% revenue growth, with gross margins holding at 26.7%.
Shore Capital remains optimistic about Synectics’ future earnings potential. “There remains the potential for a further significant uplift in profits, leading to even more compelling valuation metrics than those in the outer years,” Sanders adds.
Financial Guidance and Valuation
Synectics’ forecasts remain conservative, but they signal steady growth:
- FY25 revenue is projected at £65 million, rising to £75 million by FY27.
- Adjusted EBIT is expected to grow from £5.4 million in FY25 to £6.9 million in FY27.
- Earnings per share are forecast to increase to 32.1p by FY27, up from 24.9p in FY25.
Using a discounted cash flow (DCF) analysis, Shore Capital finds that even conservative assumptions—a 12.8% WACC and 0% growth—justify the current share price of 328p. More realistic parameters could push the valuation as high as 417p per share, leaving scope for further upside.
Synectics’ FY25 outlook is shaping up to be another chapter of disciplined growth and expanding opportunity. With a growing order book, major contract wins across key international markets, and an increasingly effective partner channel, the company appears well-poised to capitalise on its strengths. As Rob Sanders affirms, “The outlook remains very promising,” and this confidence is reflected in the Board’s positive tone and operational decisions.
In a world increasingly reliant on intelligent surveillance and command systems, Synectics continues to stand out as a reliable and forward-looking partner. The company’s strong performance and strategic clarity suggest that its long-term potential remains firmly intact.
