26 April 2018 – AGM statement
The advanced surveillance technology company has issued a pleasing AGM statement stating that the first four months of trading in the current financial year have continued the trends seen last year. The international gaming sector, where the company has a market leading position continues to be strong and is performing ahead of management’s expectations. There are also signs of growth in the UK public infrastructure market where the group has won a number of new contracts and it believes that it is winning market share in the provision of electronic physical security for critical high profile sites. However, business in the UK bus and coach market has continued to decline with revenues falling accordingly. In the oil and gas market which has been depressed for some time there are now some tentative signs of recovery with increased capital expenditure being sanctioned by certain producers although this may take some time to filter through as firm orders. Synectics has sanctioned an increase in R & D spending as it looks to improve its offering and the benefits of this should be felt going forward. With the company expecting to announce results in line with market expectations we continue to rate the shares as a BUY.