Casino surveillance biz decline tips Synectics to year loss
Surveillance technology specialist Synectics Plc, an equipment supplier to the land-based casino industry in Asia-Pacific including in Macau and Singapore, reported a consolidated loss of nearly GBP4.7 million (US$6.5 million) for the financial year ending November 30, compared to a consolidated profit of just over GBP1.6 million a year earlier.
“The largest direct negative impact affecting Synectics currently is the closure of, or lack of business in, major casinos and gaming resorts in the United States and the Far East, in turn driven by travel and other restrictions on the public,” said the company’s chairman David Coughlan, in commentary accompanying its results filed on Tuesday with the London Stock Exchange.
Synectics provides electronic surveillance systems to firms involved in a number of sectors, including gaming, transport, critical infrastructure, public space, and oil and gas applications. Its has product deployed in casinos in the United States and in Asia.
The latest company results announcement showed group revenue fell 34.9 percent year-on-year, to GBP44.6 million in the 12 months ended November 30, from GBP68.5 million in the prior-year period. The firm said the decline was related to the fact that “a number” of its end markets had “suffered significant pandemic-related impacts, particularly global casinos and gaming resorts.”
Synectics had a basic loss per share amounting to GBP0.277, versus a basic profit per share of GBP0.097 in financial-year 2019.
The group’s net cash position as of November 30 was positive by GBP6.9 million, compared to a positive GBP3.6 million in the prior reporting year. As of February 26 this year, it had net cash amounting to GBP4.5 million.
Synectics said its order book at financial year-end 2020 carried GBP25.4-million worth of business, versus 32.7-million worth at year-end 2019. As of February 26 this year, it carried GBP32.9-million worth.
The group said it had “simplified” its organisation, “resulting in the closure of a number of operating sites,” and reduced its operational cost base by an “annualised GBP2.4 million”.
A decision on whether to restart payment of dividends would be reviewed during the current financial year, “once the timing of recovery is clearer”.
Synectics stated in commentary that its performance in the Asia Pacific region in 2020 was “heavily impacted by the closure of most of the gaming market during the year and low levels of activity elsewhere”.
But it added that in the gaming segment it had been “pleased to be able to sign a new five-year support contract with a major integrated resort operator in Singapore,” as it had announced in May.
For the gaming segment in the Asia-Pacific region, the group had been “encouraged to see some small system expansion orders at the end of the year, but we have yet to see a return to anything like normal levels of activity”.
In September, the firm took part in a discussion session of the Global Gaming Expo (G2E) Asia Online Conference 2020, moderated by GGRAsia.
At the time, Dave Dalleske, vice president sales for Asia Pacific at Synectics, said that the use of surveillance cameras for detailed analytic purposes – including being able to track an individual throughout a gaming property based on the colour of their clothing – was a developing area of interest for the industry.
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