Slide 1: A leader in advanced Security and Surveillance Systems
A leader in advanced Security and Surveillance Systems Synectics plc Interim Results 2024
Slide 2: About Us
About Us 2 Synectics plc Interim Results 2024 Synectics is a Leader in Advanced Security and Surveillance Systems The Company’s expertise is in providing solutions for specific markets where security and surveillance are critical to operations. Our core IP comprises our open-architecture, proprietar
Slide 3: Overview & Highlights
Overview & Highlights 3 Synectics plc Interim Results 2024 Revenue Underlying Profit Underlying EBITDA £26.3m 20% £2.2m 183% £2.8m 67% Order Book Net Cash Interim Dividend £30.2m 6% £6.4m 61% 2.0p • Strong results bolstered by the early delivery of several projects by the Systems division “ • Board
Slide 4: Our strategy remains to develop and capitalise on market-leading positions
Our strategy remains to develop and capitalise on 4 market-leading positions Synectics plc Interim Results 2024 Our goal is to solidify our position as a leading security and surveillance technology provider by employing a comprehensive strategy designed to extend our market reach and drive sustaina
Slide 5: Systems Division
Systems Division 5 Synectics plc Interim Results 2024 H1 2024 H1 2023 Revenue (£m) 17.4 13.8 Underlying gross margin 48.4% 49.4% Underlying operating profit (£m) 2.9 1.4 Underlying operating margin 16.7% 9.9% • Gross margins remained very strong, and order intake was very healthy • Sustained demand
Slide 6: Security Division
Security Division 6 Synectics plc Interim Results 2024 H1 2024 H1 2023 Revenue (£m) 9.7 8.7 Underlying gross margin 28.5% 26.2% Underlying operating profit (£m) 0.7 0.4 Underlying operating margin 6.7% 4.9% • Secured £4.0 million contract with National Grid, much of which is expected to be delivered
Slide 7: Income Statement
Income Statement 7 Synectics plc Interim Results 2024 Revenue Recurring revenue EBITDA1* Operating profit* Earnings per share* Revenue Revenue £2.2m £2.8m £3.7m 10.0p £26.3m £3.4m £3.3m £21.9m £0.8m £19.2m £1.7m £1.6m £0.5m £26.3m 2.1p £26.3m £21.9m £21.9m £19.2m £19.2m 3.7p HY22 HY22 HY23 HY23 HY24
Slide 8: Revenue Bridge
Revenue Bridge 8 Synectics plc Interim Results 2024 Revenue by sector Revenue bridge by region (£) O&G SECURITY H1 24 GAMING PSTI* O&G *excludes intercompany sales SECURITY H1 24 revenue £8.9m £5.0m £2.7m £9.7m £26.3m H1 23 Systems Security Total GAMING • EMEA: revenues up by 46%, driven predominant
Slide 9: Revenue & Order Book Profile
Revenue & Order Book Profile 9 Synectics plc Interim Results 2024 Revenue profile (£) Order book (£) • Strongest first half since Covid; results for the full year expected to be relatively evenly weighted between H1/H2 • Strong order book with >60% expected to be delivered in H2 24 *All income state
Slide 10: Gross Profit and Margin
Gross Profit and Margin 10 Synectics plc Interim Results 2024 H1 24 FY 23 H1 23 £9.1m £11.2m GP + £2.1m Systems 48.4% 46.4% 49.4% Security 28.5% 28.3% 26.2% Total 42.5% 40.7% 41.7% • Gross profit increase of £2.1m; 23% growth GM % in gross profit in both divisions • Continued strong gross margins; i
Slide 11: Operating Profit
Operating Profit 11 Synectics plc Interim Results 2024 • Staff costs: pay increases, new investment in sales / business development and software development • Overheads: software licences • Depreciation & amortisation: reduced due to lower capitalisation in FY21 and FY22 • Capitalisation: increased
Slide 12: Net Cash
Net Cash 12 Technology spend Synectics plc Interim Results 2024 £1.8m £1.6m £1.6m HY22 HY23 HY24 Free cash flow £3.1m £0.7m £0.2m HY22 HY23 HY24 Interim dividend • Strong cash generation from operating activities 2.0p • Working capital inflow from reduction in debtors, offset with increased inventor
Slide 13: Capital allocation
Capital allocation 13 Synectics plc Interim Results 2024 Ongoing investment to deliver organic growth in established markets, including developing our partner programme and the refresh of Security’s go-to-market strategy ERP & CRM investment in FY24 and FY25 to drive business efficiencies Increased
Slide 14: Our Technology
14 Our Technology Synectics plc Interim Results 2024 In H1 2024, we introduced new features for Synergy and the COEX camera range.
Slide 15: Technology Investment
15 Synectics plc Interim Results 2024 Technology Investment We continue to invest in the latest technology and services to position the Company for further growth in each market. Cloud Services Mobile Enable deployment in numerous Streamline task management extending platform configurations. beyond
Slide 16: South-East Asia Casino Resort
16 Synectics plc Interim Results 2024 Gaming South-East Asia Casino Resort Upgrading and expanding the Synergy surveillance system at a major gaming resort. The customer has been using Synergy since 2014 and the resort is one of the most successful and high-profile in the world.
Slide 17: Major UK Utilities Provider
17 Synectics plc Interim Results 2024 Critical Infrastructure Major UK Utilities Provider The project will see Synergy rolled out in the main command and control centre, centralising feeds from numerous locations throughout the network into a single unified platform.
Slide 18: Delta Bingo
18 Synectics plc Interim Results 2024 Gaming Delta Bingo Delivering a multi-site Synergy security and surveillance solution across 17 locations in North America. This represents a different profile of gaming customers for Synectics with the potential to lead to similar opportunities in the medium te
Slide 19: Summary and Outlook
Summary and Outlook 19 Synectics plc Interim Results 2024 • Strong results bolstered by the early delivery of several projects by the Systems division • Financial performance in FY 2024 to be more evenly weighted than in prior years and comfortably in line with market expectations • Strong order boo
Slide 20: Delivering Stakeholder Value
20 Synectics plc Interim Results 2024 Delivering Stakeholder Value Synectics represents a compelling investment opportunity for those seeking a combination of stability, innovation, and reputation operating in strong and growing markets across the globe. Dividend-paying UK- A trusted brand Customer-
Slide 21: Synectics plc contact details
Synectics plc Synectics House 3-4 Broadfield Close Sheffield, South Yorkshire S8 0XN, United Kingdom t. +44 (0) 114 280 2828 e. info@synecticsplc.com www.synecticsplc.com