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Business is recovering strongly following previous problems in the US tech sector. And a series of forecast-beating trading statements in 2024 have driven its shares higher.

A corresponding PEG multiple of 0.2 suggests the cybersecurity specialist is actually trading below value.

Business is recovering strongly following previous problems in the US tech sector. And a series of forecast-beating trading statements in 2024 have driven its shares higher. Latest financials showed sales up 4% between June and September, at £104m. This helped NCC swing to an adjusted operating profit of £6m from a £1m loss a year earlier.

Sales should keep rising too, driven by a blend of falling interest rates and the growing prevalence of cyber threats facing companies.

Also encouraging is the direction of NCC’s gross margins, which improved 200 basis points to 41.4% in the 12 months to May. This reflected successful restructuring efforts and a better product mix as managed services sales increased.

This could be a tasty dip buying opportunity for investors. Its PEG ratios for the next two financial years (ending September 2025 and 2026) are both below the value watermark of 1, at 0.3 and 0.7, respectively.

These are backed by predicted annual earnings growth of 84% and 26% for this year and next.

On 10 December, NCC spooked investors by announcing it had seen “a lengthening of sales cycle these fears are ever decreasing now. Any further problems are baked into the low valuation in my opinion. What’s more, the long-term outlook here remains extremely robust.

Sales are still flying as the number of online threats exponentially grows. During the 16 months to September, NCC’s revenues leapt 28.2% to £429.5m. This reflects its wide range of services, which include incident detection, consulting, and assurance.

The firm’s undergoing significant transformation to maintain its impressive sales momentum, too. Measures include offshoring some of its operations, rebranding, and targeting higher value and longer contracts with its Managed Services unit.

Yes excellent news, looking forward now to the group focussing on their best parts going forward, next statement should show zilch debt and an excellent tidying up all round :

NCC Group plc (LSE: NCC, "NCC Group" or "the Group"), a people-powered, tech-enabled global cyber security and software escrow business, announces that, further to its announcement on 1 August 2024, has today completed the disposal of Fox Crypto B.V. part of its European Cyber division in the Netherlands, for total consideration at completion of €78.5m (c.£65m) to CR Group Nordic AB, following successful satisfaction of all customary conditions associated with the disposal.

As announced on 1 August 2024, Fox Crypto B.V. contributed revenue and EBITDA of c.£18m and c.£4m respectively in the 12 months ended 31 May 2024 and the consideration therefore represented a 2024 EBITDA multiple of 16.5x. Fox Crypto was previously a standalone entity, and the disposal does not impact the Group's continuing Cyber capabilities.

The gross proceeds will be used to repay the Group's RCF borrowings, reduce Group net debt and facilitate growth in the Cyber Security business. Group net debt following this disposal as at 31 March 2025 is expected to be in the range of NIL - £3.0m. This is consistent with previous guidance of paying down our net debt prior to the Board's decision to buy additional shares for our Employee Benefit Trust in December 2024 (c.£6.0m).

The disposal represents a continuation of the Group's transformation strategy to simplify the business and create a more focused Cyber Security business. Both our Cyber and Escode businesses provide the benefit of a portfolio effect to the overall Group performance with clear future growth opportunities to enhance shareholder value.

The Group is due to announce interim results for the period ended 31 March 2025 on 19 June 2025 and will be hosting an immersive cyber security capability event on 1 May 2025.

I’ve been loading up on this penny share,I generally invest in medium- and large-sized companies with proven business models. But I own the odd penny share. One I am particularly excited about has soared 28% in the past month, although over five years it has fallen 90%.

But some recent developments led me to buy more shares in this company – here’s why.A nice problem: lots of cash getting dusty

The company in question is Logistics Development Group (LSE: LDG).

With a market capitalisation of £75m, this is a fairly modest operation. It also has significant shareholders that have specific (and competing) visions of how the company ought to be run. I see that as a risk for a small shareholder like me, but it is also a potential opportunity.

Last year, an activist investor launched a campaign — ultimately unsuccessfully — seeking to wind down the company and distribute its assets to shareholders.

The reason for that is interesting in my view. LDG is basically sitting on a large pile of cash. The group’s cash position last month was about £44m, almost 60% of its entire current market capitalisation.Unlocked value in investment portfolio

Not only that, but the company owns stakes in a number of other firms.

For example, it is a shareholder in Alliance Pharma. Last week, it was announced that Alliance had agreed to a takeover bid at a price 41% higher than its share price the day before the takeover was made public.LDG indirectly owns 13% of Alliance. It will receive an equivalent stake in the new private company. Last month, LDG also announced that it had redeemed a £10m debt note it held in another company for £13.1m.

At that point, the company also laid out a plan I think is aimed at mollifying its activist shareholder, proposing a tender offer at 19p per share to return up to £21m to shareholders.

If that is approved by shareholders (which I expect it will be), LDG will buy back a certain amount of shares for 31% higher than they can be bought for on the open market right now.Why I’ve been buying

That news led me to increase my stake in this penny share. The sizeable discount of the share price versus the proposed tender offer points to ongoing risks.

The tender offer may not complete, for example. Even if it does, its scale is capped, so there is no guarantee of how many shares I may be able to sell back to the company at the 19p price.Even considering that though, I continue to see potential deep value here. LDG is sitting on a large cash pile it has explicitly set out to reduce by buying back some shares at well above their current price. It is also sitting on a number of investments that, as the debt note sale and Alliance takeover illustrate, could ultimately turn out to be worth more than their current carrying value on the company’s balance sheet.

They may not, of course. But on balance, I reckon LDG is a share that could ultimately be worth substantially more than its current price suggests

Whitehall could well be taking profit, but there is 100% a buyer around, if not 2.

HTTps://www.waterpowermagazine.com/analysis/ai-solutions-for-risk-management/?cf-view

AI solutions for risk management

With safety and security challenges growing for hydropower facilities, Synectics’ Synergy DETECT offers a flexible, AI-powered surveillance system designed to improve worker protection, monitor infrastructure, and detect potential risks in real time

s threats to critical infrastructure grow, from safety hazards to security breaches, the role of cutting-edge technology in mitigating these risks has never been more vital. Recognizing the unique challenges faced by hydropower operators, Synectics has launched Synergy DETECT, an AI-driven video analytics suite designed to enhance safety, security, and operational efficiency.

This innovative technology, part of the broader Synergy platform, delivers tailored surveillance solutions to protect critical assets like dams and turbine facilities while ensuring worker safety. By leveraging artificial intelligence (AI) to offer tools such as PPE Detection and Fall Detection, Synergy DETECT provides real-time alerts and actionable insights that help operators address site-specific risks.

Tailored solutions for hydropower facilities

Hydropower facilities present unique challenges due to their high-risk environments. Workers are often exposed to hazards such as turbine blades, fast-moving water, and remote worksites where quick response times are essential. Synergy DETECT has been developed with these challenges in mind.

All three new entrants to Hulse’s portfolio in recent months have been small UK-listed firms that focus internationally to bring in their cash.

These include podcasting publisher Audioboom, that Hulse said should trade at least double what it was currently, and Alumasc, a Kettering-based supplier of building products.

However, the best performer of the trust’s new entrants so far has been Synectics, which has added £1m in returns since it entered the portfolio, making it the third largest contributor to performance in 2024.

Synectics, which Hulse described as a “classic hidden gem”, makes security surveillance software primarily for casinos, which have been returning to normal following the coronavirus pandemic.

Significant contracts with casinos won by the firm recently include Singapore’s Marina Bay Sands, which the manager said could spur a wave of new contracts for Synectics.

“Alongside that, they can use this expertise in the monitoring systems for casinos and roll them out into other sites,” said Hulse, noting that the firm had recently won a contract with the National Grid.

On Tuesday 4th March, possibly one of the busiest days for SmallCaps reporting, one of my recent favourites, Synectics (LON:SNX) will be announcing its 2024 Final Results – and I am looking forward to hearing what the group has to say about its business going forward.

The Business

The Sheffield-based group is a leader in advanced security and surveillance systems that help protect people, property, communities, and assets around the world. 

It also has operations in Berlin, Macau, Singapore and in Wheat Ridge, Colorado.

The company’s expertise is in providing solutions for specific markets where security and surveillance are critical to operations.

Such markets include gaming, transport, public space, oil and gas, and critical infrastructure. 

Its experience and technical excellence, combined with long-standing customer relationships, provides fundamental differentiation from mainstream suppliers and makes the company a stand-out in its field.  

Recent Contract Win

On Monday 27th January this year, the group followed up the award of several contracts late last year, with the announcement that it had been awarded a further contract, worth some $2.2m, for the professional services to deploy a Synergy upgrade and expansion at a major gaming resort in South-East Asia, one of the most successful and highest profile gaming resorts in the world.

Synectics will provide a comprehensive suite of professional services, including the project management and on-site commissioning required to upgrade the existing software and hardware infrastructure to enhance the customer’s security capabilities to meet its evolving operational needs.

This is not for a new client, in fact it has been working with this customer since 2014, and the contract is further to the $13.2m contracts awarded, in aggregate, in FY 2024 (June and September).

It is a complex project, with the customer’s system remaining in operation 24/7 throughout the upgrade, which is expected to be delivered predominantly in the current financial year.

Management Comment

CEO and CFO Amanda Larnder stated that:

“We are delighted to provide our professional services to such a prestigious and long-term customer in a market and territory in which we have significant experience.

This contract demonstrates the Customer’s confidence in Synectics’ end-to-end expertise required to deliver such an organisationally critical project and the commitment to our ongoing partnership.”

Analyst View

At Shore Capital Markets, its analyst Rob Sanders has estimates out for the group’s year to end-November 2024 showing £57.0m (£49.1m) revenues, lifting its adjusted pre-tax profits to £6.1m (£4.8m), with earnings of 20.3p (14.2p) and paying a dividend of 4.5p (3.0p) per share.

For the current year he looks for £61.7m sales, £5.0m profits, 23.9p earnings and a dividend per share of 6.5p.

The year to end November 2026, he

Davebowler 8 Oct '12 - 13:20

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Fundamental Data

Name Synectics Plc Sector ELEC APPARATUS & EQUIP-WHSL

Mkt.Sector AIMP Mkt.Segment ASX1 Turnover 49,128,000 Profit 2,163,000

Basic EPS 0.13 PE Ratio 28.10 Market cap 60,800,400 NMS -

News

13/01/2025 17:30 LSEG_RNS Synectics PLC Holdings in Company

06/01/2025 08:40 LSEG_RNS Synectics PLC Holdings in Company

06/01/2025 08:30 LSEG_RNS Synectics PLC Holdings in Company

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leedsu369 Jan '25 - 02:08 - 738 of 741 Edit

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The proper sells yesterday were selling at first @ £3.59, then @ £3.55

They then dropped down to pick up the buyer order @ £3.60 and they're all listed as sells because they crossed the mid.

This all points to the buyer picking up shares from Whitehall again and is all orderly.

leedsu369 Jan '25 - 02:10 - 739 of 741 Edit

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Well, actually they're listed as 'unknown' but are most definitely buys.

leedsu3614 Jan '25 - 01:55 - 740 of 741 Edit

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The sells yesterday @ £3.60 and £3.61 and we know for certain now that it's Whitehall, now Whitehall were at 30%, miles in front of the next largest shareholders.

The sells are being easily absorbed, the sp has not been affected, indeed it has rose slightly, and that's even against this market turmoil that's hitting the ftse etc.

So, there is a buyer, Whitehall have reduced down from 29% give or take, to 26% give or take, so the buyer possibly has 3%, maybe they haven't finished yet to have to report, but the good thing is that this is holding firm and still pi's are getting onboard with the smaller trades that we can see.

Whitehall are not killing the sp, they have probably said the price they'll let some go at, but are not daft, and imo not selling out. Why would they when in 8 weeks now they're looking at a 'materially ahead of expectations' results statement, and I have no doubt have spoke to the company.

Synectics plc engages in the design, integration, and support of security and surveillance systems in the United Kingdom and internationally. It operates through two segments: Systems and Security. The Systems segment provides specialist electronic surveillance systems comprising Synergy, a security and surveillance software platform; and radiometrics-enabled COEX explosion-proof cameras for gaming, transport, critical infrastructure, public space, and oil and gas applications. The Security segment delivers integrated solutions and support services directly to end-users to public space, transport, and national infrastructure 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.

a no bull**** company that just gives you the facts.

this will motor in 2025 and going forward from here.

well established and at the forefront of ai with their camera systems, facial technology is going to be all the rage all over the world, casinos, stadiums, shopping centres, you name it, ai facial recognition is going forwards not backwards.

I thought the likes of vela were tied in for 6 months, obviously untrue ?

A junior with cash, serious backing and excellent core results going forward.
A very rare bird indeed, re-rate coming.

Appreciated fingers thanks.

Fingers, the positions you have listed - have you any idea of what they paid for their holdings?

Trade 47 today - 40,000 @ 18.5p ..This is just my thoughts and guessing but if that is the buyer from earlier it underpins it again.

The rounded figures suggest the buyer could've accumulated approx 180,000 today.

You'll get these types of shake on the way up because they don't want to up the sell price, just let it do it's thing .

Good luck all, i'll wait for holdings or Director rns which should see a good spike and any could be due.

There's definite interest and it moves as if not much stock around, pre covid it was in the 20's so there's every reason and more for it to go back there, nobody should have any interest in selling because they're in higher and there's someone wanting 29%.

What really would make it rattle now is if any Director increased their holding which would virtually tell the interested party ...'this is where i am'

And they want this..

Krupa Global Investments a.s., Ceské Lithium a.s. (Czech Lithium) and partners (“KGI”) is launching voluntary tender offer (‘‘VTO‘‘) for up to 29.9% of issued share capital with voting rights of European Metals Holdings Limited (“EMH”)

KGI is currently holding 1.910.000 shares of EMH, more than 1% of issued capital.