Synectics Share Chat (SNX)

As with most recent SNX updates some positives and negatives, with the market immediately focusing on the negatives and a c15% drop, which seems a bit excessive.

The positives - trading inline with expectations for the 1st 5 months of the year and a big hopsitality contract.

The negatives - as perhaps expected, energy is delaying contract signing and YE 26 will be H2 weighted - usually the revenue mix is quite steady throughout the year.

Reading between the lines there may be a revenue miss in 2026, but the decision is being pushed down the line in the hope the energy contracts materialise in H2. Hopefully things will pick up, but contract delays are always a risk for a smallish company.

Still a bargain under £2 for investor with a 2 to 3 year timeframe.

.wealthoracle.co.uk/company-results

Synectics, the AIM-listed advanced security and surveillance solutions provider, reported broadly in-line trading for the first five months of the year ending 30 November 2026. The leisure and hospitality sector saw strong order intake in the North American gaming market, including the Company's largest contract win to date — a surveillance solution for a large-scale casino and integrated resort in Ontario. The Group secured £1.4m of contracts with a UK regional authority covering approximately 220 buses across transport. Within the energy sector, ongoing geopolitical uncertainty has caused some customers to delay project decisions, though the scale and quality of these opportunities remain unchanged. Revenue and profitability will be H2-weighted in line with the historical profile. Subject to energy sector normalising, the Board expects FY26 to be in line with market expectations of £62.0m revenue and £4.1m adjusted EBITDA. The strategic transition announced at March final results is progressing well. Vs consensus: Trading in line with management expectations and market expectations of £62.0m revenue and £4.1m adjusted EBITDA, subject to energy sector contract timing normalising in H2 — a conditional reaffirmation with explicit downside flagged on Middle East-driven energy customer delays. Verdict: IN-LINE

.wealthoracle.co.uk/company-results

Not a great update. Uncertainty

Having final broken through £2, this could be one to watch over the coming week. I should have been a little more confident back in March when it was in the 150's - though in my defence I think most things were cheap then.

Ex-div in a couple of days might share a few pennies off the price.

Interesting £65k purchase at 200p has just dropped. Tomorrow might be interesting.

I think it will make another attempt tomorrow. As long as they don't let tango-man loose on his phone, it has a chance to make a clean break.

Yes, hopefully we should see £2 plus here soon as even at that price it's silly cheap.

We do need a slow but steady stream of new contracts just to show that things are progressing.

It's a shame the company doesn't publish a pipeline opportunity figure so we can get an idea of the size of the pie.

I also think a special divi could have been added to YE results to improve sentiment - even 10p would be only £1.7m and they have £14m sitting in the bank. Maybe also a small share buyback too.

If they are looking at acquisitions that's fine, but it's rarely mentioned and doesn't appear to be a priority.

Very dodgy spread.

buyer beware

Caveat emptor

What is going on with the spread on this share?

This is ridiculous now. 2025 results recently published has an EPS of 28p so the current PE is about 5.5. This is almost priced to fail, which is bizarre.

Surely a very conservative PE would be 10 (so 280p per share). Even allowing for say a 20% discount due to 2026 lower guidance that's still c225p a share.

With the strong balance sheet - no debt and over £14m cash - that should improve the PE.

Short term anything under £2 is a steal IMHO, under £3 is still a decent medium term price based on 2027 guidance.

These are a steal at this price. But the market just doesn’t seem to value the stock. They’re going to need some notable success to shift perception. Solid results, a rock solid balance sheet and heavy levels of cash with which to invest don’t seem to cut it at the moment.

They also talked around Future Outlook and commercial rigor with a 100% increase in pipeline. Still no mention of new project wins ... West Midlands Police framework that was signed nearly 2 years ago, Stagecoach and Bus Eireann also signed early last year, where are the new project wins on the back of this increased pipeline and commercial focus/rigor

CEO earned £260k in 2024 and only became CEO in the later part of that year so 2025 earning will be a lot higher. She can afford shares, however, as she has over 1 million options there is little incentive to buy on the open market.

A decent Investor Meets presentation yesterday, so hopefully things will slowly start to turn after a massive over reaction.

NAV is c 250p

Added 2k myself. My only worry would be how much the Iran conflict will affect business in the gulf for SNX.

Not a huge amount, £12K, but going by the little amount bought in the past, I presume Amanda is not loaded. And right before the investors meet due at 11am today, I'd like to see that as a little confidence.

Does anyone know if Singer, the new broker, has actually released any coverage.

I presumed there would be some to coincide with the annual results, but can't see any, unless they are behind a paywall.

There does seem to be a 315p target price - is this Singer's?

Re other large scale projects coming up (obviously these will be a bit 'lumpy'), Marina Bay Sands is undergoing an US$8 billion expansion, featuring a new fourth tower scheduled for completion by 2030 and opening in early 2031.

Now SNX has the contract for the existing 3 towers, so what is the chance that they will get the contract for the 4th in the next year or so?

Just saying!

Agree Shandy. For me these are currently a buy and long term hold. I can’t see dramatic movement in share price in near term unless they land a landmark project. But I do expect these to rerate in the future, or to be taken over. Right now they are a bargain.

This has been a relatively common observation - the need for stronger, more effective communication. I certainly agree with you. Some RNSs could have been much more positively worded.

Remove the reference to the very large completed contract and these are very positive results but the share price has halved in the last year or so and is now distinctly undervalued. There is also the prospect of similarly large one-off projects (typically casinos) to be secured (dowgate mentioned sometime ago that there were plans for 5 or 6 of these in the next 2-3 years).

Agree Uh-oh, predictable reaction and now looks oversold, but also the comms is very underwhelming.

Why not say some positive things such as a progressive dividend policy and a medium term plan to increase annual revenues to £100m etc. Also 2025 was not only record profits, but these exceeded market expectations - not mentioned.

Instead they focus on the short term bad news, which was already known.

With cash, even accounting for some development spend in 2026 the EV is c£20m which seems very low for a profitable, debt free company.

However, i suspect the market has focus on the single digit EBITDA for 2026 and will move on in the short term.

Under £2 this is a bargain, but can't see any momentum in the SP for some time.

I certainly agree that the shares look oversold. However, recent pronounced price falls, from over 300p, suggest the company is saying one thing to shareholders and another to its brokers. Why else would the shares collapse when the company is so optimistic (from 2027)?

The management need to communicate much more effectively as well as clearly if the shares are to return to favour. It is in their hands and at the moment, they, especially the relatively inexperienced CE, appears not to understand this.

This morning's RNS is a mixed bag if ever there was one.

Revenue and margin up materially and the same for the cash balance plus no debt. But, and it is a significant but, the forecast for this FY is for reduced revenue due to the completion of a "large contract". The transition to a product based business model will also weigh on some investors minds as there will be execution risk.

They say that the market is always forward looking, not sideways or backwards. On that basis, the SP should dip. If it does I will buy some more shares because, on balance, I see a positive future for SNX.

All IMHO, DYOR and ask George Ford why he made such a hash of things against Ireland.

TWK - Sprinkling sugar on the porridge

3 new contracts announced and the sp drops over 6%?

There can’t be many company’s that would announce three new contracts only for the sp to then fall. The business needs to share some details as to the value of those contracts so that the market can assess their contribution to the business and its relative value.

Someone needs to help SNX write more impactful messages for the market. They undersell themselves. And in this latest RNS they miss the one key piece of information that the market is most interested in - the value of the new contracts. Not surprisingly, the sp hasn’t moved on this news.

BTW that's in reply to someone called wakokid - may have been removed now.

Most people seem to be sensible and polite on this board

Are we still at school and name calling? A tad sad.

All new contracts are a positive sign and expanding into new industries and geographic area is also encouraging, however, a lack of detail and ££ would indicate that they are not massive.

SNX is a great little company, however, it appears to have benefitted from a number of hospitality/casino one off contracts and these may be becoming fewer and far between. This makes revenues a little 'lumpy'.

The company is sensibly trying to become more long term contract focused so there is recurring revenues, however, this may take time.

Despite record and market exceeding profits in 2025 the SP dropped about 1/3 from c£3 to £2 so it is clearly not just me who is concerned.

It’s the gaining of the various new contracts that is ongoing, not the contracts themselves. Reads fine to me

Well yes…. But I find the phrase “Ongoing New” rather odd? It’s one or the other isn’t it?

And no mention of any of the contract values makes it impossible to quantify a value for the Announcement.

Revisiting the most recent trading update the business stated the following about its strategy and outlook:

“Given the evolving nature of this transformation, a more detailed view of FY 2026 and future year expectations will be provided alongside the full year results in March 2026. The Board remains confident in Synectics' strategy and prospects”.

They also referred to making further investments in their strategy - to a product led software platform business rather than a project-led business. There’s every prospect that the results in March could be a key moment for the business as it seeks to grow and deliver its plans.

Https://www.investegate.co.uk/announcement/rns/synectics--snx/holding-s-in-company/9438836

Difficult to buy again today, similar to last week. Current spread is 229/239 so can see this ticking up later

HL had very little stock yesterday but the price was slow to move up. The same today, can't buy even 100 shares, but can sell at over midpoint. Expect the SP will nudge up later today , as per yesterday. MMs seem reluctant to let this go.

I had to wait to be able to buy for the last hour is this usual for this stock?

****** is V O X markets - all one word

https://www.**********.com/articles/small-cap-investing-with-paul-hill-and-paul-scott-e5757fe

good discussion on stx at 31 minutes. essentially a good company but a terribly worded rns. interesting that paul hill says recurring revenues is c20 to 25% (although this has never formally been announced) .

seems that all the bad news is now priced in so cheap at these levels (who would have thought!).

just noticed someone has bought 9k at 218p so share should start ticking up.

Via the IR link on their website i did ask SNX this question a few months ago a few months after the new broker was announced. I was told they had no control over this, which i thought was a very poor response. I did point out to them that they did pay the broker so they do actually have some control over this.

I do think the messaging from SNX is very poor. I mentioned Journeo yesterday as a good company to compare against SNX. They have c£50m rev but have announced they aim to get to £100m in the longer term and have recently used some of their cash pile to make an acquisition. Both have been well received by the market and they sit on a PE of over 17. SNX sits on less than half that and of course this is based on 2024 profits as 2025 have not yet been officially released, although we know they are c25% higher.

I'm hoping a contract or two can be announced in the next month or so and then a more positive update in March, highlighting some of many good things they are doing rather than the obvious negative that 2026 numbers will be lower than 2025 (if they are slightly higher than 2024 i'll be reasonably happy).

There are not any broker forecasts. Since snx changed brokers the old forecasts have been removed and the new broker has not released any. It is a big of a shamble and Amanda Larnder should sort it out.

Can anyone advise me where I can find broker forecasts for companies.

Yes it is cheap. Very. The problem is low liquidity. Which means when someone with a large holding wants to sell, it’s difficult to do so and the share price suffers for it. On the plus side, it can move up very quickly if someone decides to buy in with a decent amount.

Hard to disagree. Laurence Hulse of Onward Opportunities described the balance sheet as “rock solid”. The stock is a steal at these prices and, I guess whilst it remains so the company is vulnerable to a takeover. I suspect we’ll see SNX in Simon Thompson’s bargain share list next month. It’s ridiculously undervalued.

Compare this valuation with say Boom, the podcast company that has just announced $5m 'record' EBITDA and is valued at £128m.

Journeo which provides the technology for information boards at train and bus stations etc (a good company to compare with SNX but slightly more recurring rev) has a company valuation of £86m on £50m rev and £5m profit.

So SNX has higher profits than both and is currently valued at £32m.

This is starting to look like a manipulated attempt to get the price down given the large sell amounts and selling pattern. Why would any large holder take such a massive loss on their holdings ? Lows being bought into so just hope its a distressed seller who needs cash. Suprised there hasn`t been any RNS or TR1 yet.

Agree - there must be a background seller which combined with a few potential issues going forward (change in strategy and lower order book etc despite market beating profits) has created the perfect storm.

Currently the EV is £18m as we have £14m cash - madness for a company that has just made £6m profit.

Still think this is worth a min £3 based on 2024 profit plus cash.

There has been a big seller this week which has made others panic and also sell up. Unless any negative news or TR1 is released soon, then its just a big holder bailing out.

Strange to have a sell off this week if that was true.

...from this silence there might be bid talks ongoing

FFS this SP is painful. So much bad news priced in and all the positives overlooked.

Facial recognition appears to be the way forward and SNX are right in this space. This will improve the revenue mix as the recurring licencing revenues will increase accordingly.

https://www.biometricupdate.com/202501/synectics-launching-facial-recognition-feature-and-expanding-footprint

Just re-read the YE trading RNS and previous ones going back a few years i think the SP reaction has been massively over done.

Firstly the company need to start blowing it's own trumpet a bit and wording is important. So when YE PBT is £6m and you've guided £5.3m that's a 13% uplift so is clearly an exceeded expectation performance. This should have been stated in the introduction but wasn't mentioned anywhere.

The negative reaction is because the one off 2025 revenue was emphasised, the order book has declined and there is no 2026 guidance.

Let's look at all three of these points - all of which are valid BTW.

The large contract appears to be the $10m one that was RNSed in June 2024. Yes it is a one off but it is with an existing client of over 10 years, so there is a strong chance of other large contracts arising in future years.

The order book at the end of 2024 was clearly inflated by the above contract. In 2023 the order book was £29m and in 2025 it is £26.5m. Yes it is slightly lower but not by a massive amount. No need to panic.

Whilst 2026 guidance would be nice this was not provided this time last year so again no need to panic.

If we go back to 2024 performance the rev was £55m , PBT £4.7m and PAT of £3.7m.

If we use this as a guide for 2026 then that's a PE of c10 and ignores the £14m in cash. If this was added on a £51m valuation is just over £3 a share, a c35% uplift from here.

This PE is very conservative - the FTSE 100 is currently c16 and historically is c12.

So in summary SNX which was never valued as a growth stock despite very impressive growth over the last 2 or 3 years, but is now being punished for 'probably' not growing in 2026.

SNX is a small company and can/will be impacted by the timing and contracts and one-off large contracts. IMHO as long as the direction of travel is positive, which i think it is based on the number , size and variety of contracts being won then i'm happy to hold.

Incidentally Marina Bay Sands in Singapore is building a 4th tower,, which will take 5 years. SNX does the surveillance for the existing 3 towers and casinos. So it is very probable that in a year or two a large contract will drop for providing the surveillance for this tower.

...as this market seems to havve opened better as I suspected it would.

Michael McHale is an HNW individual.Ex- City.

Wow! Wasn't expecting this... thought I was being cute with a top up yesterday @ £2.30 🙈

It does.

Looks like there is a background seller, who is selling aggressively.

Interesting to see while pi's were unloading yesterday others were loading up. Does anyone know of Michael James McHale?

The business should be doing better.........surveillance is a growth industry but perhaps not oil and gas and casinos.

That seller is still around.It is hard to predict a bottom.

I see one at £1.00 too :(

Chart gap at £2.00 wants closing

Have just sold my 1Spatial and now hold cash to buy possibly into this dip here. Wondering whether this BoD are so inexperienced with any news except really good variety that they overcooked the last RNS! Also shorters may close.

Will be interesting to hear what the investment plans are. I've been impressed with Amanda so far. I hope she proves to be a good allocator of capital. She is well incentivised to get the shares over £6

Fortunate to have sold at the open for a small profit, traded again for a small profit and back in at 247. Basically have the same shares back at a cheaper price so I call that a win, should do well given time

Fund manager talks about SNX yesterday. Says it's bargain territory now (at 290p) and can see it getting to £6 in 5 years - based on profits increasing 50% in that time and PE increasing from c9 to 15.

https://www.youtube.com/watch?v=jqNf4nHE6fw

An awful response this morning to the TU.

The headline numbers look great, but the number of times SNX remind the market that FY25 includes a massive one-off deal (which is to be commended of them, that they aren't trying to massage the details), puts a dampener on the whole thing.

They aren't overly bullish about the short-term either. The long-term sounds like it has potential, but that is why there is such a sell-off this morning. PIs bailing out over the opportunity cost of holding a low-yield long-term growth story.

Most likely, these prices will represent a good point for buying, if you don't mind holding for a few years.

A good trading update - with PBT increased from the Oct RNS to £6m (and forecast £5.3m) that is over 10% so should be stated as above expectations.

Clearly there are concerns with growth for 2026 as 2025 included £12m of one off revenues, and no forecast has been provided.

However, with over £14m cash that gives an EV for SNX of c£25m. Madness. Even if in 2026 revenues slipped to say £60m and PBT was £5m that's a PE of less than 10.

I've topped up twice at 245 and 238 this morning.

,...to sell today but they have sunk like a stone, below my limit sell. Not too bothered and as previous poster has said, might well be worth holding for recovery/takeover possibilities.

Nice to see the SP tick up, albeit on low volumes. Has been sitting on 284.5/289 spread for a few days so thought it only needed a little push to get back over 290p.

Still think anything under £3 is a bargain so won't be selling for a while.

Will they reiterate YE numbers now that the the 30/11 YE has gone? The October RNS was very detailed so it's unclear if it is required. Maybe it could accompany the next contract win/renewal.

Goodonyer shandypants2. This is a superb company and eventually (assuming it retains its indepenence) it must

move to the Main Board. My best guess is 12-18 months away and a probable SP then of £5. I have held a decent holding in the P/F for a couple of years and delighted to stay put!

SNX appointed a new broker , Singer Capital, a month or so ago.

It would be good if they could publish some coverage on SNX as we complete our Nov 2025 YE as this share really needs some positivity and it is their job. I have emailed them - no reply yet received

A rare blue day!

Only a small contract but considering the initial contract was for 12 months as a pilot contract, starting in May, it shows their product is good and stagecoach are happy with it.