Synectics PLC Business Update (5549K)
23 Aprile 2020 - 8:00AM
UK Regulatory
TIDMSNX
RNS Number : 5549K
Synectics PLC
23 April 2020
23 April 2020
Synectics plc
("Synectics", the "Company" or the "Group")
Business Update
Synectics plc (AIM: SNX) , a leader in the design, integration
and support of advanced security and surveillance systems, provides
the following update ahead of its Annual General Meeting ("AGM") to
be held later this morning.
Further to the Company's announcement of 23 March 2020, the
Board continues to closely monitor the effect of the Coronavirus
(COVID-19) pandemic on Synectics' customers, business and
employees. Management is making necessary decisions daily to meet
the evolving situation and is closely following all national
government regulations and guidance wherever the Company
operates.
The Company has a solid cash position and measures in place to
ensure that it remains financially sound during this period of
uncertainty and beyond. The Group's available consolidated net cash
balance was GBP3.3 million as of 20 April 2020, with confirmed
facilities of GBP5.0 million in place if required.
The Board has taken mitigating actions to preserve the Group's
cash and protect the business, including:
-- Reducing temporarily salaries and fees for the Board and
senior management team across the Group;
-- Utilising the UK Government's Job Retention Scheme in order
to protect jobs, with 30% of the Company's UK workforce having been
furloughed in two tranches during April;
-- Applying for support, as appropriate, from government schemes
in the US, Germany and Singapore designed to protect jobs; and
-- Suspending all discretionary spending, recruitment and
capital expenditure in addition to withdrawing the resolution to
recommend payment of the final dividend at the AGM.
Business Operations
All the Company's business units are currently operating, but at
significantly reduced levels of activity in every sector and
geography. Reasonable levels of design and planning work are
continuing for projects now expected to proceed later in the year
than originally anticipated.
We continue to provide essential service and support to our
customers on-site where required and have increased our remote
support capabilities. The Company's business is to provide security
and safety systems; employees and customers are well aware of the
role they play in protecting communities around the world and we
are making every effort to ensure that customers can continue to
rely on us at this difficult time.
Planned investment in software development continues, with only
limited impact as a result of COVID-19.
People
With most staff working from home and others furloughed, we have
instigated a specific programme to keep colleagues connected to the
business and each other. The Group is making extensive use of video
conferencing and other communication tools to facilitate continued
effective teamwork and to minimise any potential sense of
isolation.
Outlook
Synectics' priorities continue to be:
-- to protect the health and well-being of its employees and customers;
-- to provide ongoing support to its customers, especially where
we are providing essential security and safety; and
-- to manage the business for the long term by prudent actions
to preserve cash and maintain capability.
As announced on 23 March 2020, and given the continued
uncertainty in global markets, financial guidance on the Company's
expected trading performance for the financial year ending 30
November 2020 has been and remains suspended.
Regular updates are provided on the Company's website and
further announcements will be made as appropriate.
David Coghlan, Chairman of Synectics, commented:
"Synectics is a global business with a solid balance sheet, and
we have taken immediate measures to contain costs and protect our
financial position.
"The Company fills a number of important roles in the wider
security and surveillance industry. The Board is determined that
Synectics will maintain its skills, resources and product
development momentum and, by doing so, be well-placed for new
opportunities that will undoubtedly emerge as we reach the other
side of the current hiatus."
For further information, please contact:
Synectics plc Tel: +44 (0) 114 280 2828
Paul Webb, Chief Executive
David Coghlan, Chairman
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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