Synectics Plc · LSE:SNX
Synectics — FY2023 Earnings Presentation
20 slides from Synectics's earnings presentation, 2023
Slide 1: A leader in advanced Security and Surveillance Systems
A leader in advanced Security and Surveillance Systems Synectics plc Final Results 2023
Slide 2: About Us
2 Synectics plc Final Results 2023 About Us Synectics is a Leader in Advanced Security and Surveillance Systems What We Do Why We Do It • We develop and deliver security and • Our systems help protect people, property, communities surveillance solutions tailored for specific and assets around the wo
Slide 3: Overview
Overview 3 Synectics plc Final Results 2023 Revenue Underlying Profit Underlying EBITDA £49.1m 26% £3.1m 165% £4.8m 49% Order Book Net Cash Final Dividend £29.2m 20% £4.6m 3.0p 50% Operational highlights “ • Strong results, exceeding previous market expectations, underpinned by growing demand from t
Slide 4: Systems Division Business Review
4 Develops and delivers proprietary, Business Review Synectics plc Final Results 2023 technology-led solutions to specialist markets globally. Capabilities centre around a Systems Division proprietary software platform and specialist cameras that are tailored 2023 2022 to the unique requirements of
Slide 5: Critical Surveillance for an Offshore Oil & Gas Field
5 Critical Surveillance for an Offshore Oil & Gas Field Synectics plc Final Results 2023 Oil & Gas Saudi Aramco Saudi Arabia The Zuluf field is ~40km off Saudi Arabia’s northeast coast. Saudi Aramco COEX Cameras Zuluf Offsore Field Development Synectics’ COEX cameras will cover critical locations to
Slide 6: Ensuring Regulatory Compliance for Asian Casino Resort
6 Ensuring Regulatory Compliance for Asian Casino Resort Synectics plc Final Results 2023 Gaming Urban Casino Resort – Solaire Metro North Asia The casino resort and hotel offers a high-end mix of slots, table games, high-stakes poker, bars, and restaurants. Synergy Security and Surveillance Softwar
Slide 7: Security Division Business Review
7 Business Review Synectics plc Final Results 2023 Delivers integrated solutions, service and support directly to end- users in the UK and Ireland. Security Division Principally serves public space, 2023 2022 transport, and national infrastructure markets. Revenue (£m) 18.3 16.6 Utilises a combinati
Slide 8: Long-Term Partnership with International Energy Company
8 Long-Term Partnership with International Energy Company Synectics plc Final Results 2023 Critical Infrastructure National Grid United Kingdom Deliver security improvement works across 13 new sites. End-to-End Solution The provision and cyber- hardening of CCTV and Access Control Systems throughout
Slide 9: Our Technology
9 Our Technology Synectics plc Final Results 2023 We have made significant strides in advancing the development of our core intellectual property Cutting-Edge Cloud Enhancements Expanding AI and Analytics Improved Mapping Capabilities Fortifying Cybersecurity and Data Privacy In 2023, the Company sp
Slide 10: Technology Investment Programme
10 Synectics plc Final Results 2023 Technology Investment Programme We continue to invest in the latest technology and services that will position the Company for further growth and leadership in each market. Cloud Services Mobile Enable deployment in numerous platform Streamline task management ext
Slide 11: Market Opportunities
11 Synectics plc Final Results 2023 Market Opportunities Gaming • Huge opportunities across casino resorts worldwide. • Well-positioned to benefit from regulatory changes. Oil & Gas • Poised for sustained growth due to the global energy demand. • Our devices address an escalating need for remote mon
Slide 12: Our strategy remains to develop and capitalise on market leading positions
Our strategy remains to develop and capitalise on market leading positions 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 sustainable growth. • Leveraging sector exper
Slide 13: Income Statement
13 Income Statement Synectics plc Final Results 2023 Revenue Recurring revenue Underlying EBITDA1 Underlying operating Underlying earnings per share profit/(loss) Revenue Revenue £3.1m 14.2p £49.1m £7.1m £6.9m £4.8m £1.2m 6.9p £6.8m £49.1m £49.1m £39.1m £36.6m £39.1m (£0.5)m £39.1m £1.5m £36.6m £36.
Slide 14: Revenue Bridge
14 Revenue Bridge Synectics plc Final Results 2023 Revenue by Sector Revenue Bridge by Region (£) *excludes intercompany sales FY23 revenue £13.9m £12.0m £5.0m £18.3m £49.1m Systems Security Total • EMEA: revenues up over 50%, driven predominantly by oil & gas • Asia Pacific: revenues have doubled y
Slide 15: Revenue & Order Book Profile
15 Revenue & Order Book Profile Synectics plc Final Results 2023 • Revenue and profits in FY23 weighted to second half • Strong order book with c80% expected to be delivered in FY24 *All income statement figures set out in this presentation reflect underlying results and continuing operations, unles
Slide 16: Gross Profit and Margin
16 Gross Profit and Margin Synectics plc Final Results 2023 FY 23 FY 22 FY 21 £16.6m £20.0m GP + £3.4m Systems 46.4% 50.6% 46.4% Security 28.3% 26.4% 25.2% Total 40.7% 42.5% 38.6% • Gross profit increase of £3.4m GM % predominantly due to growth in the Systems division • Reduction in gross margin by
Slide 17: Operating Profit
17 Operating Profit Synectics plc Final Results 2023 • Inflationary increases have impacted the cost base – people, utilities, professional services • Staff costs: Pay increases, commissions and bonus increases, new investment • Overheads: Provisions for uncertainties, impact of inflation across cos
Slide 18: Net Cash
18 Net Cash Technology spend Synectics plc Final Results 2023 £3.4m £3.2m £3.2m FY21 FY22 FY23 Free cash flow £2.2m £1.3m (£0.2)m FY21 FY22 FY23 Dividend 3.0p • Strong cash generation from operating activities • Working capital outflow from increased debtors and inventories – significant impact of o
Slide 19: Summary and Outlook
19 Synectics plc Final Results 2023 Summary and Outlook Performance and progress in the year provides solid basis for further growth Continued investment in technology and AI capabilities Continued sales momentum and focus on new business development Robust order book and strong pipeline of opportun
Slide 20: 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