Synectics – expect disappointing Interims on Tuesday, but look to recovery into record figures within two years, shares now 200p, could double in that timespan

Mark Watson-Mitchell - 14.08.2026

Our Vision - To be the most trusted provider of intelligent, cyber-secure security and surveillance solutions for critical industries and the people they serve.

Forget this year – that could well be the message from Synectics (LON:SNX) when it reports its Interim Results next Tuesday, 18^th August.

The £34m-capitalised group, which is a leader in advanced security and surveillance solutions, has seen its shares fall from 350p last September to a low of 146p in March this year.

However, if investors are prepared to take a one-year view on the shares, they could well enjoy price reactions to the benefits of new strategies coming into play.

That could see the shares, now 200p, rising at least 50% as they progress to a doubling in price in 2028.

The Business

The group is a leader in advanced security and surveillance solutions that help protect people, property and assets around the world.

It transforms customer operations by seamlessly integrating systems, technologies, and data into a unified solution-enhancing safety, improving efficiency, and enabling smarter, faster decision-making and response capabilities.

With its technical expertise, decades of experience, and strong partnerships, Synectics sets itself apart by delivering innovation and service that drive real value and long-term success.

Its expertise is in providing solutions for specific markets where security and surveillance are critical to operations.

That includes critical infrastructure, energy, public space, transport, and leisure and hospitality.

AGM Trading Update

On Monday, 18^th May, the company provided a trading update ahead of its Annual General Meeting, indicating that trading for the first five months of the year to end-November 2026 was broadly in line with management expectations, with positive activity in leisure and hospitality, including its largest contract win to date in Canada, and additional contracts totalling over £1.4m in the UK public sector.

While the energy sector faces delays, due to geopolitical uncertainty, the company expects full-year revenue and profitability to be weighted towards the second half, and currently anticipates trading to be in line with market expectations of £62.0m revenue and £4.1m adjusted EBITDA, subject to energy sector normalisation.

Synectics stated that it was progressing with its strategic transition, funded by existing cash resources, to position the business for scalable growth.

Management Comment

At that time CEO Amanda Larnder stated that:

"Synectics has secured important customer wins during the first five months of FY 2026 and it is particularly encouraging to see this momentum that we're building with new and existing customers.

Management continues to closely monitor the current geopolitical backdrop particularly given the Company's exposure to the energy sector.

Whilst the timing of some customer investment decisions and contract awards is currently uncertain, our underlying new business pipeline remains encouraging.

We have made clear progress in reshaping the business, with early signs that these initiatives are already supporting improved commercial execution, including better customer engagement and more efficient delivery.

We are focused on delivering a more scalable, repeatable model that can support stronger and more consistent growth over time.

The Board remains confident in the Group's strategic direction and the progress being made to position the business for more scalable and sustainable growth."

The Equity

There are some 17.79m shares in issue.

The larger holders include Whitehall Associated SA (25.29%), Downing (8.94%), Dowgate Capital (6.91%), Interactive Investor (6.34%), Synectics EBT (5.50%), Michael J McHale (5.31%), Hargreaves Lansdown Asset Mgt (5.16%), AJ Bell Securities (3.48%), and GPIM (3.45%).

Broker’s View

Following the AGM Update, analysts Harold Evans and Roddy Davidson, at Singer Capital Markets, rated the group’s shares as a Buy, with a 310p Target Price.

Their estimates for the current year to end-November are for a fall in revenues to £62.0m (£68.1m), with adjusted pre-tax profits collapsing by more than two-thirds to £2.1m (£6.6m), slashing earnings to 9.0p (27.8p) per share – however, the analysts look for the cash-rich group to increase its dividend to 5.50p (5.00p) per share.

For the coming 2027 year, they see a bounce in revenues to £69.5m, with well over double profits at £4.9m, generating 21.5p of earnings and paying a 6.00p per share dividend.

The year to end-November 2028, the analysts estimate, could see sales of £80.0m, profits of £8.9m, with 38.9p of earnings and a 6.50p dividend.

My View

The Middle East conflict has hit a wide number of companies in 2026, this is one of them.

However, taking a view on Singer’s estimates, I now see the group’s shares as ‘a recovery play’ at 200p each.