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Synectics PLC (GB:SNX)
LSE:SNX

Synectics (SNX) AI Stock Analysis

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GB

Synectics

(LSE:SNX)

Rating:79Outperform
Price Target:
3.50p
▲(5.42%Upside)
Synectics' overall stock score reflects its strong financial performance, supported by robust corporate events and moderately positive technical indicators. The company's strategic progress and contract wins position it well for future growth, despite a fair valuation and lack of recent earnings call data.

Synectics (SNX) vs. iShares MSCI United Kingdom ETF (EWC)

Synectics Business Overview & Revenue Model

Company DescriptionSynectics (SNX) is a UK-based company specializing in advanced surveillance, security, and networked video solutions. The company operates primarily in sectors such as transport, public space, oil and gas, gaming, and critical infrastructure. Synectics provides high-performance solutions that combine intelligent surveillance systems with data management capabilities, enabling clients to enhance operational effectiveness and safety.
How the Company Makes MoneySynectics generates revenue primarily through the sale of its advanced surveillance systems and related services. The company's key revenue streams include hardware sales, software licensing, and long-term service contracts for maintenance and support. Synectics also derives income from customized solutions tailored to specific industry needs, such as integrated systems for casinos and public transport networks. Significant partnerships with industry leaders and government bodies enhance its market reach and contribute to its earnings by enabling access to large-scale projects and recurring service agreements.

Synectics Financial Statement Overview

Summary
Synectics exhibits strong financial performance with improvements in revenue, profitability, and cash flow generation. The company maintains a healthy balance sheet with minimal leverage and a solid equity base. Despite past earnings volatility, recent trends indicate a positive trajectory in financial health.
Income Statement
82
Very Positive
Synectics has shown a strong revenue growth rate of 13.60% from the previous year, along with increasing profitability. The gross profit margin is at 42.89%, and the net profit margin has improved to 5.69%. EBIT and EBITDA margins are also healthy, indicating effective cost management and operational efficiency. However, previous years showed volatility in earnings, with significant losses in 2020.
Balance Sheet
79
Positive
The balance sheet is robust, with a low debt-to-equity ratio of 0.05, indicating minimal leverage. The equity ratio is strong at 62.78%, reflecting a solid capital structure. Return on Equity stands at 7.69%, showcasing decent returns for shareholders. The company has managed to maintain a stable financial position over the recent years, although historical data shows fluctuating equity levels.
Cash Flow
85
Very Positive
Cash flow generation has improved significantly, with a free cash flow growth rate of 301.22% over the previous year. The operating cash flow to net income ratio is 2.68, demonstrating strong cash generation relative to earnings. Free cash flow to net income ratio is 2.07, indicating efficient conversion of earnings into cash. This cash flow strength supports future investment and financial flexibility.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue55.81M49.13M39.12M43.59M44.65M
Gross Profit23.94M20.01M16.63M15.60M14.59M
EBITDA5.65M4.53M3.29M1.67M-3.94M
Net Income3.18M2.16M639.00K-479.00K-4.67M
Balance Sheet
Total Assets65.84M57.62M52.42M54.14M59.81M
Cash, Cash Equivalents and Short-Term Investments9.56M4.60M4.26M4.64M6.86M
Total Debt1.89M1.94M2.82M2.84M2.79M
Total Liabilities24.51M18.75M15.42M18.79M22.78M
Stockholders Equity41.33M38.88M37.00M35.34M37.03M
Cash Flow
Free Cash Flow6.59M1.64M915.00K-1.48M4.53M
Operating Cash Flow8.52M3.02M1.23M-607.00K5.75M
Investing Cash Flow-1.93M-1.39M-582.00K-842.00K-1.22M
Financing Cash Flow-1.61M-1.17M-1.17M-1.02M-1.15M

Synectics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.32
Price Trends
50DMA
3.25
Positive
100DMA
3.19
Positive
200DMA
3.13
Positive
Market Momentum
MACD
0.01
Negative
RSI
60.63
Neutral
STOCH
80.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SNX, the sentiment is Positive. The current price of 3.32 is above the 20-day moving average (MA) of 3.20, above the 50-day MA of 3.25, and above the 200-day MA of 3.13, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.63 is Neutral, neither overbought nor oversold. The STOCH value of 80.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SNX.

Synectics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£70.85M0.1530.08%7.52%47.21%
GBSNX
79
Outperform
£54.92M12.6310.49%112.04%21.43%44.70%
GBNWT
69
Neutral
£7.50M56.21-3.17%10.37%-57.83%
68
Neutral
£11.50M18.894.03%204.56%6.44%-82.88%
67
Neutral
£2.80B13.394.69%218.68%2.40%-24.53%
GBPEG
61
Neutral
£5.01M-16.58%27.50%-5.38%
45
Neutral
£1.87M-55.82%-52.98%-615.15%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SNX
Synectics
3.32
1.50
82.42%
GB:JNEO
Journeo
423.50
177.50
72.15%
GB:CSSG
Croma Security Solutions
83.50
13.33
19.00%
GB:THRU
Thruvision Group plc
1.25
-15.75
-92.65%
GB:NWT
Newmark Security
0.80
-0.20
-20.00%
GB:PEG
Petards
0.08
<0.01
14.29%

Synectics Corporate Events

Business Operations and StrategyFinancial Disclosures
Synectics Reports Strong H1 2025 Financial Performance and Strategic Progress
Positive
Jul 8, 2025

Synectics plc reported a robust financial performance for the first half of 2025, with a 35% increase in revenue to £35.5 million and a 48% rise in underlying operating profit to £3.3 million. The company attributes this growth to strong demand in the leisure and hospitality sector and significant contract wins, including deals with West Midlands Police and a major gaming resort in South-East Asia. Synectics remains debt-free with a solid cash position, enabling it to support organic growth and strategic acquisitions. The company is executing a refreshed strategy focused on expanding market presence, investing in technology, and strengthening its partner network, positioning itself for long-term growth and value creation.

Executive/Board ChangesBusiness Operations and Strategy
Synectics Appoints New CFO to Drive Growth
Positive
Jun 19, 2025

Synectics plc has announced the appointment of Paul Williams as Chief Financial Officer, effective from August 26, 2025. Williams brings extensive experience from the IT and software sectors, having served as CFO at CloudCall and other notable companies. His expertise is expected to drive internal efficiency and scalability at Synectics during a pivotal growth phase.

Business Operations and StrategyFinancial Disclosures
Synectics Reports Strong H1 2025 Trading Performance
Positive
Jun 9, 2025

Synectics plc reported positive trading results for the first half of 2025, with solid order intake and new business momentum aligning with market expectations for the full year. The company has secured extensions and repeat orders from existing customers and new mandates, maintaining a strong order book with significant projects scheduled for the second half of the year. Synectics will release its unaudited interim results on 8 July 2025, with a live webcast presentation for investors on 14 July 2025.

Business Operations and Strategy
Synectics Secures $4.8 Million Contract Extension with Asian Casino
Positive
Jun 4, 2025

Synectics plc has secured a five-year contract extension worth at least US$4.8 million with a major casino operator in South-East Asia. This extension underscores the casino’s confidence in Synectics’ Synergy software platform, which offers scalability, flexibility, and high-standard support, reinforcing Synectics’ position as a trusted technology partner in the gaming industry.

DividendsBusiness Operations and Strategy
Synectics Reinforces Leadership Commitment with Share Acquisition
Positive
May 21, 2025

Synectics plc announced that its Employee Share Acquisition Plan (ESAP) reinvested the company’s interim dividend by purchasing 944 Ordinary Shares at £3.2205 per share. This transaction resulted in key managerial personnel acquiring additional shares, reflecting confidence in the company’s performance and aligning their interests with shareholders. The move is expected to strengthen Synectics’ market position by demonstrating commitment from its leadership team.

Product-Related AnnouncementsBusiness Operations and Strategy
Synectics Secures £1.1 Million Contract with Stagecoach for Innovative On-Board Hub Solution
Positive
May 12, 2025

Synectics plc has secured a £1.1 million contract with Stagecoach, the UK’s largest bus and coach operator, through its systems integration business, Ocular Integration. This contract involves piloting Ocular’s new On-Board Hub solution, designed to enhance fleet efficiency and passenger experience. Developed in collaboration with Navaho Technologies Limited, the On-Board Hub integrates multiple functionalities like automatic vehicle location and real-time passenger information, streamlining operations and improving surveillance technology deployment. The successful completion of this pilot could lead to wider deployment, strengthening Synectics’ position in the transport sector.

Shareholder MeetingsBusiness Operations and Strategy
Synectics plc Secures Shareholder Support at AGM
Positive
May 7, 2025

Synectics plc announced that all resolutions presented at its Annual General Meeting were successfully passed, reflecting strong shareholder support. This outcome reinforces the company’s strategic direction and operational stability, potentially strengthening its position in the security and surveillance industry.

Business Operations and StrategyFinancial Disclosures
Synectics Reports Strong Trading Performance with Key Contract Wins
Positive
May 7, 2025

Synectics plc has announced that its trading is in line with expectations, supported by recent contract wins across key sectors, which bolster its solid order book. The company has secured new projects in the energy sector, particularly in floating liquefied natural gas and floating production storage, and has seen positive momentum in the leisure and hospitality sector, especially in North America and the Far East. Additionally, Synectics has made gains in critical infrastructure, public space, and transport sectors, with new projects from local authorities and police. The company continues to develop its strategic initiatives, leveraging its advanced solutions to address market opportunities.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025