Synectics Shares Plunge Despite Solid FY25; Continued Growth Momentum

Synectics plc (AIM: SNX), a specialist in advanced security and surveillance solutions, saw its share price plunge over 13% at the open on Wednesday after the company provided a full-year trading update.

The fall comes despite the company reporting a robust financial performance for the year ended November 30, 2025 (FY25), fueled by strong momentum in its core markets and the successful execution of a significant contract. The company anticipates continued strategic progress into FY26.

Revenue is expected to reach approximately £68 million, a notable increase from £55.8 million in FY24. Adjusted EBITDA is projected at £8.5 million (FY24: £6.3 million), and adjusted PBT is anticipated to be no less than £6.0 million (FY24: £4.7 million). These figures include a £12 million contribution from a non-recurring gaming contract in South-East Asia.

The Group's order book stood at approximately £26.5 million as of November 30, 2025. The prior year-end predominantly reflects the completion of the significant gaming contract, which had previously been included in this figure, as well as some impact from global economic conditions delaying the timing of certain project approvals, particularly in oil and gas.

Synectics boasts a record cash balance of £14.1 million, up from £9.6 million the previous year. This strong financial position enables the company to fund its investment program and explore strategic acquisition opportunities.

Reflecting confidence in the business, the board has recommended an increased final dividend of 2.8 pence per share, bringing the total dividend to 5.0 pence per share, an 11% increase from FY24.

Amanda Larnder, Chief Executive Officer, commented: “FY 2025 has been a positive year for Synectics, with the delivery of a solid financial performance and strong early progress on the strategic transformation of the business.”

Looking forward, Synectics enters FY26 with a solid order book and growing momentum in strategic execution. While FY26 will not benefit from the one-off gaming contract, the company sees solid demand and has good visibility on its new business pipeline. Recent contract wins in renewables and decarbonization reflect progress in broadening its market reach.

Increased investment is anticipated in line with Synectics' long-term growth priorities, funded from existing cash resources.