TIDMSNX
RNS Number : 2442H
Synectics PLC
23 March 2020
For immediate release 23 March 2020
Synectics plc
("Synectics" or "the Company")
Business Update: COVID-19
Synectics plc (AIM: SNX ) provides the following update on the
measures the Company is taking in response to the developing
COVID-19 situation.
The Board is closely monitoring the effect Coronavirus
(COVID-19) is having on Synectics' customers, business and
employees, and are making necessary decisions daily to meet the
rapidly changing situation.
The business has a solid cash position, and has measures already
in place to ensure it remains financially sound during this period
of uncertainty, and beyond.
Business Operations
The Company's business is to provide security and safety
systems: Our employees and customers are acutely aware of the vital
role they play in protecting communities around the world, and are
making every effort to ensure our customers can rely on us at this
difficult time.
Although we anticipate significant, unavoidable disruption, we
are using best endeavours to continue essential service and support
to our customers.
The priorities for the Board are to:
-- protect the health and well-being of our employees and
customers;
-- provide ongoing support to our customers, especially where we
are providing essential security and safety; and
-- manage our business for the long term by prudent actions to
preserve cash and maintain capability.
Changes to Working Practices
As an International business, we are closely following all
National government regulations and guidance wherever we operate -
regarding travel, working practices, 'stay home' notifications,
healthcare, and well-being.
We have taken significant steps to protect colleagues and
customers, while actioning robust continuity plans to minimise
disruption - which we are constantly reviewing and updating.
We suspended all business travel at the start of last week,
re-arranged working patterns at all Synectics sites, and
implemented measures such as increasing remote support, and
ensuring our teams can work from home.
Most employees are now working from home, or on rotation: with
an expected significant and extended increase in homeworking, which
many of our colleagues have no experience of, we have instigated a
specific programme to keep colleagues connected to the business and
each other, to facilitate continued teamwork and avoid feelings of
isolation.
Financial Position
The business has a solid cash position. Currently available cash
balance was GBP4.1M as of 20 March 2020, with confirmed facilities
of GBP5M in place if required.
Measures have already been put in place to curb discretionary
spending and to preserve cash. All recruitment and non-critical
capital expenditures are on hold. Stocking plans are being adjusted
daily based on customers' committed requirements.
These actions should ensure that the business remains
financially sound during this period of uncertainty and beyond.
We also note and welcome the UK Government's "Coronavirus Job
Retention Scheme" and we await further details on how this will
operate.
AGM
The Company still expects to hold its Annual General Meeting
("AGM") on 23 April 2020, but the venue for this has been changed
to its offices in Sheffield and proceedings will be broadcast
online.
The Board would encourage all shareholders who wish to do so to
vote online at www.signalshares.com rather than attend the AGM in
person.
In order to reduce the risk of infection, the meeting will end
immediately following the business of the AGM.
Instructions on proxy voting are attached to the Notice of
Meeting enclosed with the 2019 Annual Report which has already been
sent out to shareholders and which can be found on the Company's
website.
Dividend
The Board has recommended the payment of a final dividend for
the year ended 30 November 2019 of 3.5p per share, subject to
approval by shareholders at the Company's AGM on 23 April 2020.
Given the current situation and the desire to preserve cash, the
Board believes it is appropriate and prudent to cancel the final
dividend payment for the year ended 30 November 2019 and therefore
intends to withdraw the relevant resolution at the AGM.
The Board will review the situation later in the year.
Outlook
The priorities for the Board are as set out above. We are a
global business with a solid balance sheet, and we have taken
immediate measures to contain costs and protect our financial
position.
Modest trading in Q1 was expected to be followed by a strong Q2
performance. However given the continued uncertainty, the Board
wishes to withdraw financial guidance on expected trading
performance for the financial year ending 30 November 2020.
The Board will continue to monitor the situation closely and
provide a further update at the time of the AGM on 23 April
2020.
Paul Webb
Chief Executive
23 March 2020
For further information, please contact:
Synectics plc Tel: +44 (0) 114 280 2828
Paul Webb, Chief Executive
David Bedford, Finance Director
email: info@synecticsplc.com www.synecticsplc.com
Shore Capital Tel: +44 (0) 20 7408 4050
Tom Griffiths / Henry Willcocks
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END
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