Business
Pre-Close Trading Update
Pre-Close Trading Update.
About this update from Synectics Plc
[{"type":"text","content":"\n \n\n\n\n\nQuadnetics Group plc (\"Quadnetics\" or \"the Company\") announces that\nit expects results for the year ended 31 May 2006 to be broadly in\nline with market expectations. As projected in the Company's interim\nreport issued in February 2006, Quadnetics achieved significantly\nincreased profits in the second half of the year compared with the\nfirst half.\n\nOn 9 November 2005, Quadnetics acquired Protec plc (\"Protec\"), which\nhas substantially increased the scale of the company's activities and\nmarket position in its chosen field of electronic security systems.\nProgress with the integration and post-acquisition trading of Protec\nhas been ahead of plan, and there have been positive developments in\nmost areas of the acquired business. Integration of the acquired and\ncontinuing activities has largely been completed, and Quadnetics is\nnow trading through two divisions, Quadrant Security and Synectics,\nunder an enlarged and strengthened senior management team.\n\nFor the year ended 31 May 2006, total consolidated turnover is\nexpected to be approximately £50 million, of which turnover from\ncontinuing operations is expected to be approximately £30 million, a\nrise of around 12% on the previous year.\n\nIn the Company's interim report, it was anticipated that most of the\nbenefit of Synectics' investment and increased activity in the North\nAmerican CCTV surveillance market would not start to come through\nuntil the 2006/7 financial year, and there was indeed no contribution\nfrom this area in 2005/6. However, the prospects in North America\ncontinue to look excellent and the sales pipeline is very\nencouraging. Trading for the Group's UK businesses in the second half\nwas in aggregate better than expected, particularly for Synectics'\ndigital security systems.\n\nTotal order books as at 31 May were approximately £13 million,\ncompared with a total corresponding figure of around £10 million for\nthe Quadnetics and Protec businesses at the end of the previous year.\n\nQuadnetics' balance sheet remains strong. The Group's consolidated\nnet cash position at 31 May 2006 was significantly above expectations\nat approximately £9 million, due principally to lower than\nanticipated integration and other costs within the acquired Protec\nbusinesses, and an improved working capital position.\n\nOverall, the Board of Quadn...