Synectics PLC on Tuesday announced its first interim dividend in five years as it celebrated sound order intake and ‘solid foundations for future growth’.
The Sheffield, England-based advanced security and surveillance systems firm said pretax profit jumped to £1.8 million in the six months ended May 31, from £631,000 a year prior.
Revenue climbed 20% to £26.3 million from £21.9 million. The company said it was boosted by early delivery of several projects by the Systems division.
Cost of sales increased 19% to £15.1 million from £12.7 million, while operating costs were 11% higher at £9.4 million from £8.4 million.
After half a decade, Synectics declared an interim dividend of 2.0 pence per share, a 54% increase from its 1.3p per share payout for the first half of financial 2019.
The company said it is confident of meeting market expectations for the current financial year ending November 30. It states that analyst consensus anticipates revenue growth of 7.7% to £52.9 million from £49.1 million in financial 2023.
The analyst consensus for adjusted pretax profit is £3.5 million.
For financial 2023, Synectics had reported a statutory pretax profit of £2.7 million.
Synectics highlighted a ‘significant’ $10 million contract for a high-profile gaming resort it had announced last month, which is expected to be delivered in the next financial year that starts on December 1.
Chief Executive Officer Paul Webb said: ‘The board is pleased to report continued progress and momentum in the company’s performance, laying solid foundations for future growth. Our key operating segments still have significant growth potential, and we are simultaneously exploring adjacent markets where the benefits of our software and expertise are valued, thereby building on our position as the go-to provider of security and surveillance systems for specialist applications.’
He added: ‘The company continues to see strong order intake and sales momentum, further underpinning the board’s confidence in the outlook for FY 2024 and beyond.’
Synectics shares were 1.5% higher at 187.68 pence each on Tuesday afternoon in London.
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