Synectics (SNX) AI Stock Analysis

• Market Cap: £25.99M
• Dividend Yield: 2.09%
• Average Volume (3M): 56.45K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.95
• Revenue Growth: 21.43%
• EPS Growth: 44.70%
• Country: UK
• Employees: 290
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.06
• Shares Outstanding: 17,794,440
• 10 Day Avg. Volume: 80,643
• 30 Day Avg. Volume: 56,454
• PEG Ratio: 0.80
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 5.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.28
• Revenue Forecast (FY): £70.50M

• Rating: 70 Outperform
• Price Target: 171.00 p ▼(-24.00% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

Score is driven primarily by solid financial performance (low leverage, improved profitability, and strong recent cash generation). This is meaningfully offset by weak technicals—price well below key moving averages with bearish momentum—while reasonable valuation and a moderate dividend yield provide partial support.

Positive Factors

Conservative balance sheet

Very low leverage provides durable financial flexibility and downside protection against project timing risk and sector cyclicality. The conservative capital structure supports investment in R&D, bidding for large contracts, and ability to sustain dividends or opportunistic M&A without stressing liquidity.

Strong cash generation

Near-parity of free cash flow and reported earnings shows improved cash conversion that is likely to persist absent large one-off projects. Reliable FCF supports reinvestment in software and services, funds working capital for projects, and underpins sustainable dividend and balance-sheet resilience.

Revenue recovery and improving margins

Sales growth and margin expansion reflect operational recovery and pricing/scale benefits from end-to-end systems work. Higher gross and operating margins increase cash flow durability and indicate improving unit economics across projects and aftermarket services, supporting medium-term profitability.

Negative Factors

Historical earnings volatility

Past years of losses and lumpy performance highlight that project-driven revenues and execution risk can produce material swings. That structural volatility can stress planning, make revenue less predictable, and require higher liquidity buffers or conservative bidding to preserve margins over cycles.

Modest capital efficiency

ROE in the mid-to-high single digits implies limited excess returns on invested capital, constraining long-term shareholder value creation. Modest capital efficiency may indicate limited pricing power or heavy reliance on hardware passthroughs versus high-margin recurring software revenue.

Project concentration & long sales cycles

Dependence on large, milestone-driven contracts in sectors like oil & gas and critical infrastructure creates structural timing risk and customer concentration. Delays or award shifts materially affect near-term revenue and margin visibility, requiring strong backlog management and diversified sales pipelines to reduce sensitivity.

Synectics Business Overview & Revenue Model

Company Description

Synectics plc engages in the design, integration, and support of security and surveillance systems in the United Kingdom and internationally. It operates through Systems and Security divisions. The Systems division provides integrated electronic surveillance systems based on its own proprietary technology for gaming, transport, critical infrastructure, public space, and oil & gas applications. The Security division is involved in design, integration, monitoring, and management of large-scale electronic security systems to infrastructure, transport, and public space applications. The company was formerly known as Quadnetics Group plc and changed its name to Synectics plc in July 2012. Synectics plc was incorporated in 1983 and is headquartered in Sheffield, the United Kingdom.

How the Company Makes Money

Synectics makes money primarily by delivering security and surveillance projects and by providing ongoing support for the systems it deploys. Key revenue streams generally include: (1) Project/system integration revenue: fees earned from designing and implementing integrated security solutions, including engineering/design services, project management, installation/commissioning, and integration of components (e.g., cameras, sensors, access control devices) into a unified platform. This also often includes pass-through sales of third-party equipment and any proprietary software supplied as part of the overall solution; revenue is recognized through contract delivery rather than simple product retail. (2) Software and solution revenue: income associated with the company’s software used for security management, video management, or command-and-control/monitoring, which may be sold as part of a project or licensed to customers; specific pricing structures (perpetual vs subscription) are not available here and are therefore null. (3) Aftermarket/service revenue: recurring or repeat revenue from maintenance contracts, technical support, spares, upgrades, system health checks, and lifecycle services for installed systems. This service component can provide a steadier earnings base relative to one-off project work. (4) Customer/sector concentration factors: earnings are influenced by the timing and size of contract awards in its target sectors (e.g., large critical-infrastructure or oil & gas projects), where sales cycles can be long and revenue can be project-milestone driven. Information on specific major partnerships, named customers, or material contract terms is null because it is not provided here.

Synectics Financial Statement Overview

Summary

Strong overall fundamentals supported by a high-quality balance sheet (very low leverage) and solid recent cash generation, alongside improved profitability and revenue growth. Offsetting factors include historical earnings/cash-flow volatility and still-modest net margins.

Income Statement

Profitability and growth have improved meaningfully over the last several years. Revenue rebounded from declines in 2020–2021 to strong expansion in 2022–2025, with 2025 revenue up ~4.7% and margins trending higher (2025 gross margin ~42.8%, EBIT margin ~8.8%, net margin ~5.4%). The key weakness is the historical volatility—losses in 2020 and 2021 highlight cyclicality/execution risk, and current net margins remain modest despite the recovery.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage across the period. In 2025, total debt is ~1.65m versus equity ~43.7m (debt-to-equity ~0.04), providing strong financial flexibility and downside protection. Equity has also grown versus earlier years. The main limitation is that returns on equity, while improving (mid-to-high single digits in recent years where provided), are not yet at a level that would indicate exceptional capital efficiency.

Cash Flow

Cash generation is strong in the most recent year, with 2025 operating cash flow of ~9.24m and free cash flow of ~8.92m, broadly matching reported earnings (free cash flow running at ~0.96x net income). This is a notable step-up from weaker cash conversion in earlier years, including negative operating/free cash flow in 2021. A watch item is that 2025 free cash flow growth is slightly negative (~-3.9%) versus 2024, suggesting some near-term normalization after a strong prior year.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	68.10M	55.81M	49.13M	39.12M	36.64M
Gross Profit	29.17M	23.94M	20.01M	16.63M	15.60M
EBITDA	7.95M	5.65M	4.53M	2.58M	1.54M
Net Income	3.71M	3.18M	2.16M	1.47M	-479.00K
Balance Sheet
Total Assets	64.76M	65.84M	57.62M	52.42M	54.14M
Cash, Cash Equivalents and Short-Term Investments	14.14M	9.56M	4.60M	4.26M	4.64M
Total Debt	1.65M	1.89M	1.94M	2.82M	2.84M
Total Liabilities	21.02M	24.51M	18.75M	15.42M	18.79M
Stockholders Equity	43.74M	41.33M	38.88M	37.00M	35.34M
Cash Flow
Free Cash Flow	8.92M	6.59M	2.75M	915.00K	-1.48M
Operating Cash Flow	9.24M	8.52M	3.02M	1.23M	-607.00K
Investing Cash Flow	-2.21M	-1.93M	-1.39M	-582.00K	-842.00K
Financing Cash Flow	-2.63M	-1.61M	-1.17M	-1.17M	-1.02M

Synectics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 225.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SNX, the sentiment is Negative. The current price of 225 is above the 20-day moving average (MA) of 189.25, above the 50-day MA of 212.74, and below the 200-day MA of 274.16, indicating a bearish trend. The MACD of -17.57 indicates Positive momentum. The RSI at 17.87 is Positive, neither overbought nor oversold. The STOCH value of 16.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SNX.

Synectics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	70 Outperform	£25.99M	12.60	8.48%	2.09%	21.43%	44.70%
CSSG	70 Neutral	£9.84M	13.62	4.23%	3.20%	10.26%	45.18%
NWT	69 Neutral	£9.66M	-38.26	7.90%	―	3.41%	393.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PEG	61 Neutral	£6.98M	-4.01	-8.19%	―	63.81%	71.62%
THRU	42 Neutral	£4.13M	-0.42	-76.54%	―	-21.55%	10.59%

Synectics Corporate Events

Synectics CEO Increases Stake Following Performance Share Plan Option Exercise

Synectics plc has disclosed that Chief Executive Officer Amanda Larnder has exercised options over 62,000 ordinary shares under the company’s Performance Share Plan at an exercise price of 177.50 pence per share. To cover the related tax liability, the company used a net settlement arrangement, withholding 29,140 shares and issuing 32,860 shares to Larnder from its employee benefit trust, increasing her holding to 77,291 shares, or 0.43% of Synectics’ issued share capital.

The transaction underscores ongoing alignment of executive incentives with shareholder interests through performance-based equity awards, without any sale of shares by the CEO. Larnder also retains options over a further 1,040,000 ordinary shares, highlighting the company’s continued use of long-term equity incentives to retain and motivate senior leadership and potentially signaling confidence in Synectics’ future prospects.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £199.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics CFO Increases Stake with Share Purchase

Synectics plc, a leader in advanced security and surveillance systems, has disclosed a share purchase by its chief financial officer, Paul Williams. The company is known for integrating multiple technologies and data streams into unified security platforms that support critical operations and long-term value for clients.

Williams acquired 5,574 Synectics ordinary shares via his self-invested personal pension at 179.40 pence per share, giving him a resultant holding of 5,574 shares, or about 0.03% of the company’s issued share capital. The transaction, conducted on AIM in London and now publicly reported, modestly increases insider ownership and may be read by investors as a signal of executive confidence in Synectics’ prospects.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £201.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics CEO Amanda Larnder Increases Shareholding with New AIM Purchase

Synectics plc disclosed that chief executive officer Amanda Larnder has increased her stake in the company by purchasing 7,245 ordinary shares at 171.00 pence each on 9 March 2026. Following the transaction, Larnder holds 44,431 shares, representing 0.25% of Synectics’ issued share capital, alongside options over 1,102,000 shares, signalling additional executive alignment with shareholder interests.

The purchase, executed on AIM in London and formally notified as a PDMR transaction, modestly strengthens management’s direct equity exposure at a time when the company is positioning itself as a leader in integrated security and surveillance solutions. Such insider buying is often watched by investors as a potential indicator of confidence in the company’s strategy and future performance, although the stake remains relatively small in percentage terms.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £199.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics Director’s PCA Buys Shares, Lifting Board Insider Stake

Synectics plc disclosed that Kate Kempster, the wife and person closely associated with non-executive director Jon Kempster, purchased 10,000 ordinary shares in the company at 185 pence each on 3 March 2026. Following the transaction, this holding represents Jon Kempster’s total beneficial interest, giving him a 0.06% stake in the company’s issued share capital.

The director-related share purchase marginally increases insider ownership at Synectics and may be interpreted by the market as a signal of board-level confidence in the company’s prospects. While the stake is small in absolute terms, such transactions are often monitored by investors for indications of alignment between directors and shareholders, particularly in smaller, growth-oriented AIM-listed companies.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £326.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics Boosts Profits and Cash as It Invests in Product-Led Growth Strategy

Synectics reported a 22% rise in revenue to £68.1 million and a 36% increase in adjusted EBITDA to £8.5 million for the year to 30 November 2025, supported by a record £14.1 million cash balance, no bank debt and an 11% higher total dividend. Performance was driven by strong growth in both Synectic Systems and Ocular Integration units and the successful delivery of a £12 million international gaming project.

The company has entered the execution phase of a group-wide transformation to become a more scalable, product-led and partner-enabled business, including a strengthened leadership team and an enhanced global systems integrator programme. Management expects FY26 to be a transitional investment year with lower revenue and margins due to the absence of the one-off gaming contract, but is guiding to double-digit revenue growth and higher EBITDA from FY27, with further acceleration anticipated by FY28, positioning Synectics for stronger competitive standing and improved shareholder returns.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £326.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics Sets March Date for 2025 Final Results and Investor Webcast

Synectics plc has announced it will publish its audited financial results for the year ended 30 November 2025 on 3 March 2026, providing investors with a detailed view of the company’s recent performance. The timing of the release will be followed by investor engagement activity aimed at broadening communication with both existing and potential shareholders.

The company will host a live webcast presentation of the final results via the Investor Meet Company platform at 11:00 a.m. GMT on 9 March 2026, open to all current and prospective investors, who can submit questions before or during the event. This initiative underscores Synectics’ emphasis on transparency and active shareholder dialogue, which may strengthen investor relations and support its positioning in the security and surveillance market.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £326.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.

Synectics Wins New Contracts in Southeast Asia Transport and European Renewables

Synectics plc, a specialist in advanced security and surveillance systems, focuses on delivering integrated monitoring and control solutions for critical operations worldwide. Leveraging long-standing technical expertise and industry partnerships, the company aims to create unified platforms that add measurable value and support long-term customer success.

The company has announced a series of new contract wins that underline its growing geographic reach and sector diversification. It has secured its first transport-sector deal in Southeast Asia to enhance and maintain a national traffic monitoring camera system, and won further orders in the European renewables market to supply COEX cameras for offshore wind substation platforms, reinforcing its position in critical infrastructure security and supporting its strategic push into broader energy markets.

The most recent analyst rating on (GB:SNX) stock is a Buy with a £326.00 price target. To see the full list of analyst forecasts on Synectics stock, see the GB:SNX Stock Forecast page.