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Synectics (LSE:SNX) experienced a notable increase in share value during early Monday trading following the announcement of continued positive momentum in the third quarter. The company, renowned for its advanced security and surveillance systems, disclosed that its full-year financial results for 2024 are now anticipated to exceed previous market forecasts.
Management expressed satisfaction with the third quarter’s performance, highlighting sustained growth across key markets. This positive trend has been bolstered by several new contracts, including a significant $1.2 million installation project for a casino resort in the Philippines. Additionally, Synectics has secured its first security system deployment in Cambodia, further contributing to its robust performance.
Synectics now projects that its underlying profit before tax (PBT) for the 2024 financial year will be "materially ahead of market expectations." The previous forecasts had estimated revenue at £52.9 million, with an adjusted PBT of £3.5 million. The company’s updated outlook reflects stronger-than-anticipated performance and an optimistic view for the remainder of the year.
Looking ahead, Synectics is focused on fortifying its order book for the 2025 financial year. The company aims to sustain its growth trajectory and continue delivering strong results across its diverse portfolio of projects. This proactive approach is intended to build on the positive momentum achieved thus far and position the company for further success in the future.
On Monday, the positive news led to a significant rise in Synectics' share value, with the small-cap company’s stock climbing 12.3% to trade at 228p each in London. This surge reflects the market’s favorable reception of the company’s strong performance and optimistic outlook.
Overall, Synectics' performance in the third quarter has demonstrated its resilience and capacity for growth in the competitive security and surveillance sector. The new contracts and the updated financial projections underscore the company’s successful execution of its strategy and its ability to deliver results that surpass market expectations. As Synectics prepares for the next financial year, its emphasis on strengthening its order book and maintaining positive momentum is expected to support continued success and value creation for shareholders.
