Synectics releases 2012 financials

Synectics releases 2012 financials

Synectics recently announced its 2012 financial results. For the year ending on November 30, the company reported a 12-percent increase in the consolidated revenues of US$ 117 million (£77.0 million). Underlying profit before tax was up 61 percent to $8.7 million compared to the previous year, while operating margin was up 7.4 percent. The company also reported underlying diluted earnings per share increased by 56 percent to $0.39.

"It is pleasing to report that we have achieved a further significant improvement in underlying profit as well as generating $5.17 million of cash," said John Shepherd, Chief Executive. "In spite of the continuing global economic uncertainties, we have grown our sales of large integrated electronic security systems around the world … Our current order book and pipeline give us confidence of achieving a strong performance in 2013."

The industrial systems division experienced strongest sales growth, with revenues nearly doubling year on year to $24.0 million in 2012 ($12.08 million in 2011). The sales were boosted by two substantial contracts for the Takreer (Abu Dhabi Oil Refining Company) Inter Refinery Pipeline and the Abu Dhabi National Oil Company's Shah Gas projects. However, gross margin for the sector in 2012 dipped by 2.6 percentage points to 35.5 percent. Future plans of focusing on the oil sector in Middle East and Australia and expanding presence in the U.S., Asia, Russia and the North Sea were reported.

The network systems division reported the highest growth in gross margin, with a 50.5-percent increase to $27.1 million, and revenue was up by 9.8 percent. The increase was spurred by the US gaming sector. The transport systems division also reported a revenue jump of 9.3 percent to $22.4 million, which mainly came from the UK transport business as the full year impact of Indanet's sales (acquired in July 2011) was offset by the cessation of defense activities from June 2012. Revenues from the integration and managed services division, though, suffered an 8.1-percent drop to $45.5 million, as a result of focusing on higher-margin businesses.

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