Business
Trading Statement
Trading Statement.
About this update from Synectics Plc
[{"type":"text","content":"\n \nRNS Number : 4709K Synectics PLC 25 June 2014 \n\n \n\n\n\n\nFor immediate release\n\n\n25 June 2014\n\n\n\n\n \n \nSynectics plc\n(\"the Company\" or \"the Group\")\n \nTrading Statement\n \nSynectics plc (AIM: SNX), a leader in the design, integration, control and management of advanced surveillance technology and networked security systems, provides the following update on trading. \n \nSynectics has suffered recent negative impacts that have substantially lowered its expectations of results, both for the first half year to 31 May 2014, and for the year to 30 November 2014, which are expected to be significantly below market expectations. However, trading for the second half of this year is expected to be very strong and well ahead of the record results achieved in the second half of last year (underlying PBT of £3.5 million). This is supported by substantial growth in the Group's consolidated order book, which stood at £32.9 million at 31 May 2014 (30 November 2013: £27.6 million), and particularly by an increase of 34% in the Group's qualified pipeline of anticipated orders to £46.8 million at 31 May 2014 (30 November 2013: £35.0 million). The Company's expectations for the 2015 financial year remain unchanged.\n \nThe Company indicated in its last annual report that results in the first half of this year would be significantly below those in 2012/13. Due to the impact of the issues referred to below, results for the half year ended 31 May 2014 are now expected to show an underlying loss before tax of approximately £2.5 million. The Company does not expect to report any non-underlying restructuring costs for either the half year or full year in 2013/14. As a result of the loss expected to be reported for the first half, the Board does not propose to pay an interim dividend. However, on the basis that trading is as strong as anticipated in the second half, the Board's intention would be to recommend payment of a final dividend at the same level as that of last year.\n \nThe largest impact on the full year results to 30 November 2014 is due to the current events in Iraq. Specifically, due to delays in awarding three oil & gas surveillance systems contracts for re-building and expanding oil refineries in southern Iraq, a total of around £7 million of reve...