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Synectics - Targeting adjacent sectors such as data centres

August 2025

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SNX
  • Price:
  • 302p
Synectics delivered a strong performance in H1 with sales up 35% to £35.5m, driven largely by the successful delivery of a major casino contract. Operating profit increased by 48% to £3.3m and EPS  59% to 16.4p - so in just six months, Synectics has almost beaten the full year forecast it had when I alighted on the shares in August ‘24. The company’s net cash position ballooned to £12.1m. The swing factor was Systems, which saw a 36% revenue increase, aided by a very large contract with a major gaming resort in South-East Asia to expand and upgrade the existing system and much of this work is complete. And whilst the group order book of £35.1m at the end of May suggests confidence for the full year, the question is how to fill the ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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