Interim results for the 6 months ended 31 May 2026

Synectics PLC

18 August 2026

 

18 August 2026

Synectics plc

("Synectics", the "Company" or the "Group")

Interim results for the six months ended 31 May 2026

Strategic transformation on track to drive accelerated growth from FY27

FY outlook remains achievable, with some uncertainty around Energy project timings

Synectics plc (AIM: SNX), a leader in security, surveillance and operational intelligence solutions, announces its unaudited interim results for the six months ended 31 May 2026 ("H1 2026" or the "Period").

Commenting on the results, Amanda Larnder, Chief Executive Officer, said:

"At the start of the year we launched our '5P' strategy to transform Synectics into a scalable, product-and partner-led business to significantly expand our share of a serviceable market worth c.£2 billion¹.

"During the period we made good initial progress against our strategy while securing important new business in transport, leisure & hospitality, critical national infrastructure and energy. This included a number of new customer wins, demonstrating the continued demand for our intelligent security and surveillance solutions across our markets and our ability to win new customers alongside expanding existing relationships.

"As expected, trading in FY26 has returned towards the Group's more typical second-half weighting following the significant non-repeating gaming contract which benefited H1 last year. Against this backdrop, as reported in May, the conflict in the Middle East has created uncertainty around the timing and sequencing of some Energy sector projects and infrastructure investment decisions, with certain contract awards and project activity being delayed. The underlying strategic investment requirement remains strong and we continue to be confident in the scale and quality of our opportunity pipeline. We have taken proactive steps to enable us to mobilise and deliver projects at pace as these opportunities convert into orders.

"We are focused on what we can control, executing our strategy with discipline, building our pipeline, strengthening our partner ecosystem and delivering the benefits of transformation over the coming periods.

"The Board considers that the Group is well-progressed through the design and initial execution phase of its transformation. During the first half, management focused on building the commercial, product and operational capabilities required to deliver accelerated sustainable growth. We are beginning to see tangible evidence of progress, including improved margins, simpler product deployment, new recurring revenue products and a more structured commercial approach. The Board expects these capabilities to progressively translate into stronger financial performance from FY27 onwards."

Financial summary

·    As expected, financial results are lower than H1 2025, when the Group recognised significant revenues from a non-repeating gaming contract of £7.8m; with additional delays to expected Energy revenues due to the conflict in the Middle East also impacting results in the Period.

o  Revenue of £22.2 million (H1 2025: £35.5 million)

o  Adjusted EBITDA² of £1.0 million (H1 2025: £4.2 million)

o  Adjusted diluted (loss)/earnings per share³ (0.1) pence (H1 2025: 16.4 pence)

·    Gross Margin increased 7 ppts to 48% (H1 2025: 41%), driven by ongoing focus on operational efficiency, product mix, and the completion of several lower margin projects in H1 2025.

·    Strong cash position and dividend maintained

o  Net cash at 31 May 2026 of £10.5 million with no bank debt⁴ (31 May 2025: £12.1 million, 30 November 2025: £14.1 million).

o  Interim dividend of 2.2p (H1 2025: 2.2p) will be paid on 2 October 2026 to shareholders on the register at the close of business on 4 September 2026.

Operational progress and key contract wins

·    Product innovation focused on building an AI-enabled, cyber-secure operational intelligence platform

o  Cyber security: Only UK-based integrated security and surveillance provider to have achieved Cyber Assurance of Physical Security Systems (CAPSS) certification from the UK Government, materially strengthening our competitive position in regulated critical infrastructure markets.

o  AI: Launched Scene Check, the first software module developed under the Group's new product strategy, solving a significant operational challenge for customers whilst expanding recurring revenue opportunities going forward.

o  AI: Launched Synergy SEARCH, which uses advanced AI to enable rapid, natural-language search across live and recorded video, a further important milestone in strengthening the Group's AI enabled software and recurring revenue portfolio.

·    Key contract wins across major verticals

o  £1.5 million with Stagecoach, the UK's largest bus and coach operator.

o  In-country traffic monitoring camera system with a Southeast Asian government department.

o  £1.2 million carbon capture, transport and storage project and offshore wind contract for COEX camera range.

Post period end:

o  US$ 2.4 million with major West Coast US casino operator.

Delivering against our '5P' transformation strategy

·    On track with transformation plan announced earlier this year, delivering across five identified strategic priority areas: Product, Partner-led, Market Presence, Productivity, and People.

·    Strategy designed to deliver sustainable growth through higher quality revenues, improved pipeline of opportunities and stronger operational leverage from FY27 and beyond.

·    Developed delivery framework to support execution, including key operational initiatives for 2026 and Key Performance Indicators (KPIs), which are outlined in the Strategy section below - progress against each will be provided going forward and positive progress made in the half.

Board transition

·    Experienced technology and public markets leader Peter Kear will join the Board as Senior Independent Non-Executive Director with immediate effect, replacing Andrew Lockwood who is stepping down.

·    Current independent Non-Executive Director Jon Kempster appointed Interim Chair, with Bob Holt OBE stepping down as previously announced, while search for permanent Chair continues.

Outlook

·    Entered H2 with a stable order book as at 31 May 2026 of £26.4 million (30 November 2025: £26.5 million; 31 May 2025: £35.1 million).

·    As expected, following the significant gaming contract which benefited H1 2025, trading in FY26 has returned towards the Group's more typical second half weighting.

·    Since the period end, Oil & Gas order intake has already exceeded that received during H1, driven primarily by customers outside the Middle East.

·    As reported in May, the conflict in the Middle East has continued to create uncertainty around the timing and sequencing of some Energy sector projects, with certain contract awards and project activity being delayed.

·    The Group continues to see a strong Energy opportunity pipeline. Reflecting our confidence in the size and quality of these opportunities, we have taken proactive steps to increase our ability to mobilise and deliver projects at pace as opportunities convert into orders.

·    As a result, the full year outcome will therefore be influenced by the timing and conversion of Energy opportunities during the remainder of the year.

·    Full year adjusted EBITDA is therefore expected to be in the range of £3.7 million to current market expectations⁵, with the range reflecting the uncertainty over the conversion rate of the Energy sales pipeline.

·    New strategy being implemented will expand share in c.£2bn market in the years ahead and underpin accelerated growth from FY27 onwards.

·    Strong medium and long-term drivers support the Group's strategy in diversified mix of end markets

o  Increasing investment in critical infrastructure, transport and energy resilience

o  Rising global security threats and increasing focus on protecting critical assets

o  Growing regulatory, cybersecurity and compliance requirements

o  Increasing adoption of AI, automation and operational intelligence to improve security and operational efficiency

o  Convergence of physical security, IT and operational technology driving demand for integrated security platforms

¹ Source: Company estimates of serviceable market value of $2.7bn

² Adjusted EBITDA represents profit/loss before finance income and costs, tax, depreciation, amortisation, share-based payment charge and non-underlying items (non-IFRS measure).

³ Adjusted diluted earnings/loss per share excludes non-underlying items and share-based payment charge (non-IFRS measure).
⁴ Excluding IFRS 16 lease liabilities.

⁵ The Board notes current market expectations for FY26 adjusted EBITDA of £4.1 million.

⁶ Excluding FY25 in which 1H revenues were greater than 2H revenues due to the delivery of the large gaming project.

⁷ Underlying operating profit/loss represents profit/loss before tax, finance income and costs and non-underlying items (see note 5).

The footnotes above apply throughout this announcement.

For further information, please contact:

Synectics plc Amanda Larnder, Chief Executive Officer Paul Williams, Chief Financial Officer email: [e-mail]	Tel: [phone] www.synecticsplc.com
Singer Capital Markets	Tel: [phone]
Jen Boorer / James Fischer / Patrick Weaver
Houston (Financial PR) Charlie Barker / Kate Hoare / Nick Jackman	Tel: [phone] [e-mail]

About Synectics plc

Synectics plc (AIM: SNX) is a leader in advanced security, surveillance and operational intelligence 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.

Find out more at www.synecticsplc.com.

Chief Executive Officer's Review

The first half of FY26 has been a transitional period as we execute our strategy to transform Synectics from being predominantly project-led into a more scalable, product and partner-led business. We have a strong foundation, with a market leading reputation built on a track record of deep sector expertise and delivery. However, to deliver future growth at scale and significantly increase our share of the large addressable markets we serve, we need to evolve our business model.

As expected, trading against the prior year comparator reflected the absence of last year's major gaming contract, with FY26 returning towards the Group's more typical second-half weighting. H1 performance was also impacted by delays to Energy sector orders following the outbreak of conflict in the Middle East in March 2026. Importantly, we continued to win new business across our markets during the period, including a number of significant new customer wins, demonstrating continued demand for our solutions despite the more challenging trading environment.

When I introduced our new '5P' strategy at the beginning of the year, I was clear that FY26 would be a year of transition and investment in the capabilities required to support future growth rather than immediate financial improvement.

In H1 2026, Group revenue decreased by 37% to £22.2 million (H1 2025: £35.5 million), while adjusted EBITDA declined to £1.0 million (H1 2025: £4.2 million), reflecting lower sales volumes due to the absence of the significant gaming contract which delivered substantial revenue in H1 2025 and the delay in some Energy orders and related revenue following the conflict in the Middle East. Disciplined cost control and improving operational efficiency helped mitigate the impact, with Group gross margin improving to 47.8% from 41.0%. Further details on our financial performance in H1 can be found in the Chief Financial Officer's Review below.

Against this backdrop, we remained focused on executing our strategy across our "5P" priority areas. We strengthened our go-to-market approach, progressed our partner strategy, simplified deployment of the Synergy platform, accelerated product development and continued to build the organisational capabilities required to support future growth.

We ended the period with a stable order book, a strong balance sheet, net cash and no bank debt. Whilst many of the initiatives underway are still at an early stage and have yet to translate fully into financial performance, we are beginning to see tangible evidence of progress, including improved margins, simpler product deployment, new recurring revenue products and a more structured commercial approach.

H1 2026 has therefore been a period of important operational progress and investment in the foundations required to create a more scalable business. Our focus for the remainder of the year is firmly on execution and progressively translating these capabilities into stronger commercial and financial performance from FY27 onwards.

Executing Our Strategy: The 5Ps in Action

As previously outlined, during FY25 we spent time examining our markets, products and ways of working, challenging long-held assumptions and assessing the ability of the business to scale in a rapidly evolving technology and customer environment. That work shaped the '5P' strategy, launched at the start of FY26, to build a more scalable, product and partner-led business, capable of delivering more consistent growth, higher-quality revenues and greater operational leverage over time.

Our strategic priorties are summarised in the table below:                                   

Strategic priority	Strategic objective	Strategic outcome	Status
Product	Product-led business	Simplified, scalable products.	On track
Partners	Partner-led growth	Expanded ecosystem	Progressing
Market Presence	Win more effectively	Stronger pipeline and conversion	On track
Productivity	Operating leverage	Scalable operating model	On track
People	Culture and capability	High-performance organisation	On track

On track - progress remains consistent with original plan

Progressing - meaningful progress has been made, with some elements taking slightly longer than originally anticipated as we strengthen our account-management capability.

Aligned to each strategic priority, we have established a clear delivery framework with defined initiatives, ownership, milestones and measures of success. The following sections set out the key initiatives underway during FY26, why they matter to the strategy and the progress made during the first half.

Product

Strategic objective: Product-led business

To develop scalable, repeatable and easy-to-deploy products that solve real customer problems, support partner-led growth and increase recurring revenues.

During H1, we made good progress in simplifying deployment, expanding our subscription-based software portfolio and strengthening our position in cyber-secure surveillance. CAPSS accreditation materially strengthens our competitive position in regulated critical infrastructure markets, while continued investment in product management, customer insight and engineering is supporting faster, more commercially focused product development.

1.    Deployment simplification

·    Why it matters: Reducing deployment time lowers implementation costs, accelerates customer value, improves profitability and removes one of the biggest barriers to scaling our partner network globally.

·    KPI: Reduce average deployment of projects from 20 days to 5 days by the end of FY26.

·    Progress: Average deployment time reduced to 15 days at the half year, on track to reduce to 5 days by the year end. Further automation has reduced camera configuration times by around 80% while Synergy Upgrade Manager has reduced typical upgrade times from several days to just one or two hours.

2.    Annual Recurring Revenue (ARR) product modules

·    Why it matters: Expands recurring revenues and gives customers greater flexibility in how they access and consume Synectics technology.

·    KPI: Launch three new subscription-based product modules during FY26

·    Progress: Scene Check launched during Q2 and AI-powered Synergy Search launched after the period end, expanding our subscription-based software portfolio. Our Infrastructure as a Service (IaaS) offering remains on track for launch later in FY26, alongside a new hybrid storage option, broadening customer choice by complementing our on-premise options and creating further recurring revenue opportunities.

3.    Product innovation and competitiveness

·    Why it matters: Strengthen and differentiate our product portfolio in line with our new product strategy, through AI, cybersecurity and targeted innovation, ensuring our solutions remain competitive and relevant as customer requirements and technology evolve.

·    KPI: Establish a two-year product roadmap aligned to the Group's product strategy; deliver priority FY26 roadmap developments; and reduce COEX manufacturing costs in line with plan.

·    Progress: Good progress has been made against the product roadmap, including CAPSS certification and further AI-enabled Synergy development as we advance towards an AI-enabled, cyber-secure operational intelligence platform. Development of the next-generation COEX range is also progressing well, with 20% of the target manufacturing cost reduction achieved to date and launch remaining on track for ADIPEC in November.

Partners

Strategic objective: scale through partner-led growth

To increase partner-generated revenue by growing our existing partners more systematically and expanding our network of new partners based on priority markets and geographies.

Historically, partner engagement has been relatively reactive, and partners have not been managed as a scalable indirect sales channel. Our new model introduces structured account management and planning, clear partner segmentation and improved enablement across our network of around 65 partners. As Synergy becomes easier to deploy and partners become increasingly self-sufficient, this should enable us to extend our market reach and grow partner-generated revenue without proportionately increasing Synectics' sales and engineering resources.

1.    Partner account planning and execution

·    Why it matters: Managing our partners as a strategic route to market increases revenue from partners, improves productivity and creates a more predictable and scalable route to market.

·    KPI: 90% of priority partners with approved strategic account plans by year end.

·    Progress in period: c.30% of strategic account plans have now been completed. The initial rollout identified a capability gap in strategic account management, which we are addressing to improve the quality and effectiveness of partner management.

2.    Partner enablement

·    Why it matters: Increasing partner technical capability enables partners to deploy and support Synergy more independently, increasing their capacity to sell while reducing reliance on Synectics' engineering resources.

·    KPI: 45 Synergy certified technicians by year end, with at least one within each priority partner.

·    Progress: Online Synergy Certified Technician programme launched in July, with the first cohort of 15 partner representatives now progressing through training ahead of wider rollout.

3.    Partner network expansion

·    Why it matters: Selectively adding partners in priority sectors and geographies extends Synectics' market reach without requiring an equivalent increase in our own resources.

·    KPI: 45 premium and certified partners by year end from 35 at half year.

·    Progress: New partner acquisition has been deliberately sequenced behind the implementation of strategic account management of existing partners. The initial rollout identified a need to strengthen our account management capability, which we are now addressing ahead of targeted partner acquisition.

Market Presence

Strategic objective: win more effectively

To focus our commercial resources on the markets where we have the strongest ability to win, create more qualified demand and improve conversion.

During H1, we established a structured go-to-market approach, with clearer market prioritisation, improved account planning, more disciplined pipeline management and more consistent execution across our regions. We are increasingly focusing our commercial proposition on solving specific customer problems and demonstrating measurable operational value, supported by the development of a digital demand generation capability that has historically been limited within the business.

1.    Market discovery and growth rooms - pipeline generation and conversion

·    Why it matters: Creates an evidence-led, cross-functional approach to identifying the markets where Synectics has the strongest opportunity to win and developing the customer insight, competitive positioning and value propositions required to compete effectively.

·    KPI: Priority market strategies completed and activated for all markets by year end and win rate of 15% in FY26, increasing to 25% in FY27.

·    Progress in period: Growth Rooms are now established across all priority markets, bringing together Sales, Product and Marketing to develop customer insight, ideal customer profiles and buyer personas, assess competitive position and define differentiated value propositions and go-to-market plans, with sector strategies due to be approved in Q3.

2.    Recurring revenue growth

·    Why it matters: Increasing recurring revenue will improve revenue visibility and quality while creating greater lifetime value from our installed customer base and new product capabilities.

·    KPI: Recurring revenue growth plan completed in Q4, establishing future targets for recurring revenue growth.

·    Progress: Development of the recurring revenue growth plan is scheduled for Q4, following completion of the product and commercial foundations required to support it. The plan will address increasing recurring revenues from Software Support Agreements (SSAs), commercialising new subscription-based products, evolving pricing models and broadening customer deployment options. This includes IaaS and hybrid storage alongside our established on-premise offering.

3.    Digital demand generation

·    Why it matters: Establishes a scalable source of new demand alongside our traditional relationship-led sales model, supporting both direct and partner-led growth.

·    KPI: Digital demand generation established across priority markets, with qualified pipeline contribution measured by year end.

·    Progress: Launched the Group's first coordinated global digital demand generation campaigns, initially supporting CAPSS and Scene Check with early engagement already translating into identifiable leads. This establishes a new route to market for Synectics, with performance now being measured through engagement, lead generation and progression into qualified pipeline.

Productivity

Strategic objective: a scalable operating model

Drive operating leverage through better processes, systems, automation and AI to enable growth without a proportional increase in cost and complexity.

During H1, we progressed the phased review of our operating model alongside investment in core systems, automation, AI and data capabilities. Together, these initiatives are designed to simplify how the business operates, improve productivity and create greater operating leverage as the business grows.

1.    Operating model design and process simplification

·    Why it matters: Creates clearer accountability, simpler processes and more efficient ways of working, enabling the business to scale without adding cost at the same rate as revenue.

·    KPI: Productivity targets, including revenue per employee, defined by year end once future processes and resource requirements have been established.

·    Progress: Value streams and overarching future organisation design completed, with the programme now progressing into process and workflow redesign. The next phase will focus on simplifying core processes, hand-offs and decision-making, before determining where technology and automation can deliver the greatest benefit.

2.    Process automation and AI

·    Why it matters: Reduces manual effort, simplifies processes and improves productivity, speed and consistency across the business.

·    KPI: Automation and AI roadmap developed alongside process design during H2 26.

·    Progress: AI is already delivering productivity benefits in areas that can be improved independently of the operating model review, including software development, testing, technical documentation and bid preparation. Automated software testing increased from zero to 10% of test coverage during H1, with further progress expected as enhanced tooling is introduced. Across the wider business, automation opportunities will be identified through the operating model review, ensuring processes are simplified before automation is applied.

3.    Core systems and data

·    Why it matters: Provides the integrated systems and data capability required to simplify processes, improve management insight and enable automation and AI at scale.

·    KPI: ERP implementation achieved on 30 November 2026.

·    Progress: Implementation of the ERP continues towards planned cutover later in FY26. We have also appointed a Head of Data to establish a dedicated data capability within the Group for the first time, improving how data is governed, managed and used and creating the capability required to support better decision-making, automation and future AI development.

People

Strategic objective: Leadership, Capability & Culture

Create a high-performance organisation built to execute the strategy and operate the future business successfully.

The new Synectic Systems Senior Leadership Team is now fully in place, following the appointment of the CCO, COO and CTO during H1, alongside further targeted hires to strengthen key capabilities. With the leadership structure established, the focus is now shifting towards building the skills, accountability and culture required to execute the strategy successfully.  

1.    Leadership and capability

·    Why it matters: Ensures the business has the leadership and capabilities required to execute the strategy and successfully operate the future operating model.

·    KPI: Remaining critical capability gaps identified and capability plan agreed by year end.

·    Progress: The new SLT is fully in place and targeted capability investment has continued, including strengthening Marketing and Data leadership. As the operating model review progresses, the next phase will identify the skills and capabilities required by the future organisation and establish a plan to address priority gaps.

2.    Culture of Excellence

·    Why it matters: Creates the behaviours and ways of working required for faster execution, stronger accountability and effective collaboration across the business.

·    KPI: Culture of Excellence measures covering accountability, decision-making and collaboration defined by Q3 FY26, establishing a baseline against which future progress will be measured.

·    Progress: Completed our most comprehensive employee engagement exercise to date to identify barriers to performance and opportunities to build a Culture of Excellence. The findings strongly reinforced issues already identified, particularly around process inefficiency, productivity, technology and organisational barriers, and are being incorporated into the operating model review.

3.    Performance and Accountability

·    Why it matters: Creates clear alignment between strategy, individual objectives and performance, strengthening ownership and accountability for delivery.

·    KPI: 100% of employees with aligned objectives and regular performance reviews by year end.

·    Progress: For the first time, the Group strategy has been translated into objectives through the organisation, from the SLT through to individual employees. 100% of employees now have formal Personal Development Reviews in place, establishing a regular performance-management cadence and clearer alignment between individual objectives and delivery of the strategy. From FY27, this process will commence at the beginning of the financial year, enabling objectives to be aligned to the strategy for the full annual performance cycle.

Board transition

On 18 May 2026, the Group announced that Bob Holt OBE would be stepping down as Non-Executive Chair, reflecting his increasing commitments to EARNZ plc, where he is a significant shareholder and Chair.

As separately announced today, Jon Kempster will be appointed Interim Chair, effective immediately, providing continuity while the process to appoint a permanent Chair continues.

The Board would like to thank Bob for his contribution over the past two years, particularly in supporting the establishment of the Group's growth strategy.

To further align the Board's skills and experience, Peter Kear joins the Group as an independent Non-Executive Director. Peter brings substantial experience in building and scaling listed technology businesses. He co-founded D4t4 Solutions plc, now Celebrus Technologies plc, and served as CEO from 2016 until 2022, during which time the business delivered significant growth in revenue and profitability and increased its market capitalisation from approximately £40 million to approximately £160 million. Peter also brings extensive experience of technology, software, recurring-revenue business models and both AIM and Main Market listed companies.

Peter replaces Andrew Lockwood who will step down from the Board with immediate effect. The Board would like to thank Andrew for his contribution to Synectics since his appointment in 2022.

Strengthening the Foundations for Growth

The first half of FY26 has seen substantial progress in implementing the strategic priorities I set at the start of the year. For the first time, Synectics has a clear, integrated strategy that aligns our product, commercial, operational and technology initiatives behind a common direction.

While programmes are still in their planned early stages, we are already seeing encouraging progress in the foundations we are building for future growth.

Our priority remains disciplined execution with commercial focus. We will continue investing in our product portfolio, partner ecosystem, commercial capability, operating model and technology platforms to build a business that is easier to scale, delivers greater value to customers and generates more predictable long-term returns for shareholders.

Alongside this, we will continue to evaluate selective acquisition opportunities, in line with our capital allocation policy, where they strengthen our capabilities or accelerate delivery of our strategic objectives.

Outlook

As expected, following the significant non-repeating gaming contract which benefited H1 2025, trading in FY26 has returned towards the Group's more typical second-half weighting. This weighting has been further impacted by delays to some Energy sector orders and project activity following the conflict in the Middle East.

The underlying strategic investment requirement in the region remains strong and we continue to be confident in the scale and quality of our Energy opportunity pipeline. Since the period end, Energy order intake has already exceeded that received during H1, driven primarily by customers outside the Middle East. We have also taken proactive steps to increase our ability to mobilise and deliver projects at pace as opportunities convert into orders.

The full-year outcome will therefore be influenced by the timing and conversion of Energy opportunities during the remainder of FY26. Full-year adjusted EBITDA is expected to be in the range of £3.7 million to current market expectations⁵, with the range principally reflecting uncertainty over the timing and conversion of the Energy sales pipeline.

With a stable order book, a strong balance sheet, net cash and no bank debt, the Board remains confident that the new strategy being implemented will support increased share of a market worth¹ c.£2 billion and underpin accelerated growth from FY27 onwards.

Amanda Larnder                                                                             

Chief Executive Officer                                                                 

18 August 2026

Chief Financial Officer's Review

The Group's financial performance in H1 2026 should be viewed in the context of the major gaming project absent from revenues this year, and the impact of uncertain trading conditions in the Middle East causing delayed revenues and order intake in the Energy (Oil & Gas) sector. With the Group returning to a more normalised historic weighting of revenues towards the second half of the year⁶ as previously signalled, H1 revenues are in line with Board expectations less the impact of the Energy market disruption in the Middle East.

Overall H1 revenue decreased by 37% to £22.2 million (H1 2025: £35.5 million), caused mainly by the absence of the large gaming project that contributed £7.8 million of non-repeating revenue in the corresponding period last year. Additionally, the ongoing instability in the Middle East has delayed some revenues on projects already in our order book at the time the conflict started as well delaying expected order intake and subsequent revenue recognition across the remainder of H1 and into H2. The Group is able to start assembling hardware components for some of these larger projects ahead of order receipt and so we remain well positioned to catch-up these delayed revenues in H2 2026 as trading conditions permit.

Post-period order intake from Oil & Gas customers is beginning to show signs of recovery, driven mainly by customers outside the Middle East, and our outlook for H2 2026 order intake from this sector continues to harden, albeit we remain prudent in terms of the Middle East related revenues in our FY26 outlook as there is a limited timeframe by which delayed orders or project restarts from Middle East customers must be received in order to be able to deliver them and recognise revenue. Also in the Energy sector, the Group is pleased to see revenues in H1 2026 from a number of early contract wins in Renewables partially offsetting some of the revenue delays seen in Oil & Gas.

The Group ended the Period with a stable order book of £26.4 million (31 May 2025: £35.1 million; 30 November 2025: £26.5 million)

Gross margin in H1 2026 improved significantly to 47.8% (H1 2025: 41.0%). This improvement is the result of a combination of the Group's ongoing focus on operational efficiency, product mix, and the completion of a number of lower margin Critical National Infrastructure projects last year.

Operating expenses for the period are £10.8m, down 6% from the same period last year. This fall is mainly driven by the realignment of incentive payments with expected profit flows across the year and the absence of a significant non-repeating professional services fee taken in H1 2025. These effective cost reductions are partially being offset by increased staff costs caused by a combination of salary inflation and the incoming costs associated with the new senior leadership team members joining at various points from Q4 2025.

Adjusted² EBITDA has decreased by 76% to £1.0 million (H1 2025: £4.2 million), reflecting decreased sales volumes, offset by higher margins from shifts in product mix alongside greater operational efficiency and ongoing disciplined cost control. The Group continues to invest in line with the long-term growth strategy clearly set out within its FY25 results.

Underlying⁷ operating loss was £(0.2) million (H1 2025: £3.0 million), with adjusted³ diluted earnings per share of (0.1) pence (H1 2025: 16.4 pence).

Exceptional costs of £0.3 million (H1 2025 £0.0 million) have been incurred in the period as the Group continues to execute its planned strategic growth investments. The Group remains on track with these plans and expects FY26 investment levels to be in-line with the capital allocation plans set out alongside its FY25 results in March 2026.

The Group remains debt free⁴, with a strong cash balance at 31 May 2026 of £10.5 million (31 May 2025: £12.1 million, 30 November 2025: £14.1 million). The strength of the Group's balance sheet provides confidence in its' ability to continue to invest in the strategic growth plan while simultaneously exploring product or strategy enhancing bolt-ons using surplus cash over and above that required to support its near-term operations and strategic investments.

On 20^th May 2026, the Company announced its intention to fund its employee benefit trust ("EBT") with up to £1.5 million in order for the Trustee of the EBT to make market purchases of ordinary shares of 20 pence each in the Company ("Ordinary Shares"). The Ordinary Shares purchased by the Trustee will then be held by the EBT to satisfy future employee share-based compensation awards. As at 31^st July 2026, the EBT had purchased 231,000 shares at a cost of £462,112, taking its total holding to approximately 5.5% of the Company's issued share capital, with the timing of further purchases being considered alongside the Group's wider strategic investment and capital allocation priorities.

The Group remains committed to our progressive dividend policy, and reflecting the Board's continued confidence in the business' long-term prospects, an interim dividend of 2.2 pence per share (H1 2025: 2.2 pence per share) will be paid on 2 October 2026 to shareholders on the register at the close of business on 4 September 2026. The ex-dividend date will be 3 September 2026.

Synectic Systems

Synectic Systems develops advanced security, surveillance and operational intelligence solutions for business-critical environments. Through innovative technology, including its COEX camera range, seamless ecosystems and deep sector expertise across leisure & hospitality+, energy, critical infrastructure, public space and transport, we enable organisations around the world to reduce risk, strengthen resilience and optimise performance.

Our proprietary award-winning Synergy platform brings together cameras, sensors, alarms and operational data into one intelligent command‑and‑control environment, combining video management, cyber security, AI‑enabled analytics and real‑time insight.

Performance

	H1 2026 £m	H1 2025 £m	Change £m
Revenues Critical Infrastructure Energy Public Space Transport Leisure & Hospitality	1.4 3.5 2.1 1.9 3.1	1.1 5.7 1.6 1.6 13.6	0.3 (2.2) 0.5 0.3 (10.5)
Total revenue	12.0	23.6	(11.6)
Gross margin	57.7%	47.4%	(10.3)ppt
Adjusted EBITDA	1.0	4.6	(3.6)
Adjusted EBITDA margin	8.3%	19.6%	(11.3)ppts

Synectic Systems revenues reduced to £12.0 million in H1 2026 (H1 2025: £23.6 million). £7.8 million of the decline from H1 2025 was attributable to the absence of the significant, non-repeating gaming contract in the comparative period.

Underlying performance during the period was affected by delays to Energy (Oil and Gas) revenues arising from the ongoing challenging market conditions in the Middle East and a softer gaming performance in APAC in the wake of the large contract delivered last year. However, against this backdrop, we secured new contracts in transport, gaming & leisure, critical national infrastructure and energy, showing continued cross-market demand for our intelligent security and surveillance solutions. Within the energy sector we are pleased to note that one of our two initial Renewables contracts contributed revenue in H1 2026, with the other expected to begin contributing in H2 2026.

Despite continued inflationary cost pressures impacting the prices of computer hardware globally, gross margin increased by 10.3 ppts to 57.7%, reflecting strong product pricing discipline alongside a shift in product sales mix towards more profitable Support Service Agreements (SSAs) and higher margin hardware products in H1 2026 compared to H1 2025. Due to the project-based nature of the business, it is expected that the H2 2026 product mix will continue to evolve, with GM% in H2 expected to drop down moderately from the level reported in H1.

Adjusted EBITDA was £1.0m in H1 2026 (H1 2025: £4.6m), with the reduction predominantly driven by the absence of the non-repeating gaming project in H1 2026 and subsequent softness in APAC gaming, reduced revenues from the Oil and Gas Sector, and additional staff costs as the new Senior Leadership Team is put in place. This overall drop in adjusted EBITDA has been partially offset by improved gross margins.

Ocular

Ocular delivers integrated solutions, service, and support directly to end-users in the UK and Ireland - principally within public space, transport, and national infrastructure, utilising a combination of the Group's proprietary technology and third-party products.

Performance

	H1 2026 £m	H1 2025 £m	Inc/(dec) £m
Revenues Critical Infrastructure Public Space Transport Leisure & Hospitality	3.9 1.8 5.7 0.4	4.6 2.1 5.4 0.5	(0.7) (0.3) 0.3 (0.1)
Total revenue	11.8	12.6	(0.8)
Gross margin	32.1%	26.7%	5.4ppts
Adjusted EBITDA	1.2	1.0	0.2
Adjusted EBITDA margin	10.2%	7.7%	2.5ppts

Ocular delivered a resilient performance despite mixed market conditions, with significantly improved gross margin.

Ocular revenues for the half year declined slightly to £11.8 million (H1 2025: £12.6million). Primarily this reduction was driven by the completion of a significant Critical Infrastructure project showing in revenues for the corresponding period last year, however this was offset by the ongoing roll-out of our Transport solutions throughout a number of our customers' vehicle fleets.

A key highlight was £1.5 million of new orders from Stagecoach. These comprise approximately £1.1 million of call-offs under the recently extended five-year framework agreement covering CCTV systems for 190 new electric buses, together with around £0.4 million of retrofit orders for a further 71 buses. These contracts reinforce Ocular's long-standing relationship with Stagecoach and the relevance of its technology in supporting safer, more efficient and increasingly connected public transport.

All vehicles supplied under these orders will connect to Synectics' Transport Cloud Services, supporting the Group's strategy of expanding cloud-enabled solutions while increasing recurring revenue opportunities.

Gross Margin was 5.4 ppts higher than the corresponding period last year at 32.1% (H1 2025: 26.7%) as a number of lower margin Critical Infrastructure projects were completed in H2 2025. Ocular has also operated a disciplined approach to pricing in a climate where supply chain costs are rising. This improved margin, alongside close control of operating costs, enabled Ocular to improve adjusted EBITDA margin by 2.5ppts from 7.7% in H1 2025 to 10.2% in H1 2026.

Looking ahead, Ocular remains focused on disciplined execution, converting its pipeline and expanding higher-quality recurring revenues across its core transport and regulated markets.

Paul Williams                                                                   

Chief Financial Officer                                                                   

18 August 2026

H1 2026 Financial statements

Consolidated income statement

For the six months ended 31 May 2026

			Unaudited six months ended 31 May 2026				Unaudited six months ended 31 May 2025
			Underlying	Non- underlying items (note 5)	Total		Underlying	Non- underlying items (note 5)	Total
	Notes		£'000	£'000	£000		£'000	£'000	£'000
Revenue		4	22,239	-	22,239		35,485	-	35,485
Cost of sales			(11,606)	-	(11,606)		(20,944)	-	(20,944)
Gross profit			10,633	-	10,633		14,541	-	14,541
Operating expenses			(10,833)	(296)	(11,129)		(11,567)	-	(11,567)
Adjusted1 EBITDA		3	1,010	(296)	714		4,177	-	4,177
Share-based payment charge			(120)	-	(120)		(284)	-	(284)
Depreciation and amortisation			(1,090)	-	(1,090)		(919)	-	(919)
Operating (loss) / profit			(200)	(296)	(496)		2,974	-	2,974
Finance income			99	-	99		69	-	69
Finance costs			(46)	-	(46)		(44)	-	(44)
(Loss) / profit before tax			(147)	(296)	(443)		2,999	-	2,999
Income tax credit / (expense)		6	14	48	62		(383)	-	(383)
(Loss) / profit for the period attributable to equity holders of the Parent			(133)	(248)	(381)		2,616	-	2,616
(Loss) / earnings per share		8
Basic					(2.2)p				15.4p
Diluted					(2.2)p				14.8p
Adjusted2 basic					(0.1)p				17.1p
Adjusted2 diluted					(0.1)p				16.4p

¹ Adjusted EBITDA represents profit before finance income and costs, tax, depreciation, amortisation, and share-based payment charge.

² Adjusted earnings per share excludes non-underlying items and share-based payment charges

Consolidated statement of comprehensive income

For the six months ended 31 May 2026

	Unaudited  six months ended 31 May 2026 £000	Unaudited six months ended 31 May 2025 £000
(Loss) / profit for the period	(381)	2,616
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations	(70)	(271)
(Losses) / gains on a hedge of a net investment taken to equity	(38)	46
	(108)	(225)
Tax on items that may be reclassified	10	(12)
	(98)	(237)
Total comprehensive income for the period attributable to equity holders of the Parent	(479)	2,379

Consolidated statement of financial position

As at 31 May 2026

		Unaudited 31 May 2026  £000	Unaudited 31 May 2025  £000	30 Nov 2025 £000
Non-current assets
Property, plant and equipment		4,001	3,634	3,535
Goodwill and intangible assets		23,679	22,706	23,300
Deferred tax assets		1,116	1,665	1,097
		28,796	28,005	27,932
Current assets
Inventories		7,190	6,678	6,426
Trade and other receivables		11,140	13,046	11,021
Contract assets		3,408	4,825	5,237
Cash and cash equivalents		10,498	12,120	14,141
		32,236	36,669	36,825
Total assets		61,032	64,674	64,757
Current liabilities
Trade and other payables		(9,121)	(13,037)	(12,090)
Contract liabilities		(3,151)	(3,168)	(3,004)
Lease liabilities		(1,259)	(650)	(643)
Tax liabilities		(614)	(638)	(1,159)
Provisions		(981)	(868)	(993)
		(15,126)	(18,361)	(17,889)
Non-current liabilities
Provisions		(1,041)	(605)	(1,047)
Lease liabilities		(993)	(1,034)	(1,011)
Deferred tax liabilities		(1,060)	(964)	(1,068)
		(3,094)	(2,603)	(3,126)
Total liabilities		(18,220)	(20,964)	(21,015)
Net assets		42,812	43,710	43,742
Equity attributable to equity holders of the Parent
Called up share capital		3,559	3,559	3,559
Share premium account		16,043	16,043	16,043
Merger reserve		9,971	9,971	9,971
Other reserves		(2,229)	(1,223)	(2,216)
Currency translation reserve		726	669	824
Retained earnings		14,742	14,691	15,561
Total equity		42,812	43,710	43,742

Consolidated statement of changes in equity

For the six months ended 31 May 2026

	Called up share capital £000	Share premium account £000	Merger reserve £000	Other reserves  £000	Currency translation reserve £000	Retained earnings £000	Total £000
At 1 December 2024	3,559	16,043	9,971	(1,417)	906	12,269	41,331
Profit for the period	-	-	-	-	-	2,616	2,616
Other comprehensive income
Currency translation adjustment	-	-	-	-	(225)	-	(225)
Tax relating to components of other comprehensive income	-	-	-	-	(12)	-	(12)
Total other comprehensive income	-	-	-	-	(237)	-	(237)
Total comprehensive income	-	-	-	-	(237)	2,616	2,379
Dividends paid	-	-	-	-	-	(427)	(427)
Share scheme interests realised in the period	-	-	-	194	-	(51)	143
Credit in relation to share-based payments	-	-	-	-	-	284	284
At 31 May 2025	3,559	16,043	9,971	(1,223)	669	14,691	43,710
Profit for the period	-	-	-	-	-	1,090	1,090
Other comprehensive income
Currency translation adjustment	-	-	-	-	185	-	185
Tax relating to components of other comprehensive income	-	-	-	-	(30)	-	(30)
Total other comprehensive income	-	-	-	-	155	-	155
Total comprehensive income	-	-	-	-	155	1,090	1,245
Dividends paid	-	-	-	-	-	(373)	(373)
Share scheme interests realised in the year	-	-	-	(993)	-	(132)	(1,125)
Credit in relation to share-based payments	-	-	-	-	-	285	285
At 30 November 2025	3,559	16,043	9,971	(2,216)	824	15,561	43,742
(Loss) for the period	-	-	-	-	-	(381)	(381)
Other comprehensive income
Currency translation adjustment	-	-	-	-	(108)	-	(108)
Tax relating to components of other comprehensive income	-	-	-	-	10	-	10
Total other comprehensive income	-	-	-	-	(98)	-	(98)
Total comprehensive income	-	-	-	-	(98)	(381)	(479)
Dividends paid	-	-	-	-	-	(481)	(481)
Share scheme interests realised in the year	-	-	-	(13)	-	(77)	(90)
Credit in relation to share-based payments	-	-	-	-	-	120	120
At 31 May 2026	3,559	16,043	9,971	(2,229)	726	14,742	42,812

Consolidated cash flow statement

For the six months ended 31 May 2026

	Unaudited  six months ended 31 May 2026 £000	Unaudited six months ended 31 May 2025 £000
Cash flows from operating activities
(Loss)/profit for the period	(381)	2,616
Income tax (credit) / charge	(62)	383
Finance income	(53)	(25)
Depreciation and amortisation charge	1,090	919
Loss on disposal of non-current assets	4	-
Non-underlying items	296	-
Cash flow relating to non-underlying items	(277)	-
Net foreign exchange differences	84	143
Movement in provisions and other non-cash movement	(125)	230
Share-based payment charge	120	284
Operating cash flows before movement in working capital	696	4,550
(Increase) / decrease in inventories	(668)	2,489
Decrease in receivables and contract assets	1,514	1,323
(Decrease) in payables and contract liabilities	(2,666)	(3,395)
Cash (used in) / generated from operations	(1,124)	4,967
Tax (paid)	(485)	(213)
Net cash (used in) / generated from operating activities	(1,609)	4,754
Cash flows from investing activities
Purchase of property, plant and equipment	(91)	(259)
Capitalised development costs	(666)	(615)
Purchased software	(194)	(223)
Net cash used in investing activities	(951)	(1,097)
Cash flows from financing activities
Lease payments	(449)	(415)
Net interest received / (paid)	100	68
Share scheme outflows1	(90)	-
Dividends paid	(481)	(427)
Net cash used in financing activities	(920)	(774)
Net (decrease) / increase in cash and cash equivalents	(3,480)	2,883
Effect of exchange rate changes on cash	(163)	(322)
Cash and cash equivalents at the beginning of the period	14,141	9,559
Cash and cash equivalents at the end of the period	10,498	12,120

¹Includes cash settlement on exercise of share awards and purchase of shares by the EBT.

Notes

For the six months ended 31 May 2026

1 General information

These condensed consolidated interim financial statements were approved by the Board of Directors on 13 August 2026.

2 Basis of preparation

These consolidated interim financial statements of the Group are for the six months ended 31 May 2026.

These interim financial statements do not include all the information and disclosures normally included in the annual financial statements. Accordingly, these interim financial statements should be read in conjunction with the Group's annual financial statements for the year ended 30 November 2025.

These interim financial statements for the six months to 31 May 2026 have not been audited or reviewed by an auditor pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

The condensed consolidated interim financial statements have been prepared on the basis of the accounting policies expected to be adopted by the Group for the year ending 30 November 2026. The Group did not have to change its accounting policies as a result of adopting new standards.

AIM-listed companies are not required to comply with IAS 34 'Interim Financial Reporting' and accordingly the Company has taken advantage of this exemption.

3 Alternative performance measures

Adjusted EBITDA and adjusted EBIT are now key performance measures for the Group and are derived as follows:

			Unaudited six months ended 31 May 2026				Unaudited six months ended 31 May 2025
			Underlying	Non- underlying items (note 5)	Total		Underlying	Non- underlying items (note 5)	Total
			£'000	£'000	£000		£'000	£'000	£'000
Profit before tax			(147)	(296)	(443)		2,999	-	2,999
Add back:
Finance income and costs			(53)	-	(53)		(25)	-	(25)
Share-based payments			120	-	120		284	-	284
Adjusted EBIT			(80)	(296)	(376)		3,258	-	3,258
Depreciation			611		611		551		551
Amortisation			479	-	479		368	-	368
Adjusted EBITDA			1,010	(296)	714		4,177	-	4,177

Adjusted EPS:

The Group monitors adjusted EPS. In calculating earnings for adjusted EPS, net profit is adjusted to eliminate the post-tax impact of non-underlying items and the share-based payment charge. Note 8 includes a reconciliation of earnings used for adjusted EPS.

4 Segmental analysis

Revenue by operating segment

	Unaudited  six months ended 31 May 2026 £000	Unaudited six months ended 31 May 2025 £000
Systems	11,966	23,597
Ocular	11,832	12,563
Total segmental revenue	23,798	36,160
Reconciliation to consolidated revenue:
Intra-Group sales	(1,559)	(675)
	22,239	35,485

Underlying operating profit / (loss) by operating segment

	Unaudited  six months ended 31 May 2026 £000	Unaudited six months ended 31 May 2025 £000
Systems	160	3,922
Ocular	975	762
Total segmental underlying operating profit	1,135	4,684
Reconciliation to consolidated underlying operating profit / (loss):
Central costs	(1,335)	(1,710)
	(200)	2,974

Underlying operating profit / (loss) is reconciled to total operating profit / (loss) as follows:

	Unaudited  six months ended 31 May 2026 £000	Unaudited six months ended 31 May 2025 £000
Underlying operating profit / (loss)	(200)	2,974
Non-underlying items	(296)	-
	(496)	2,974

5 Non-underlying items

	Unaudited  six months ended 31 May 2026 £000		Unaudited six months ended 31 May 2025 £000
Costs associated with new ERP system		107	-
Costs associated with restructuring and transformation		189	-
		296	-

6 Taxation

The tax credit of £62,000 (2025: charge of £383,000) for the period is based on the estimated rate of corporation tax that is likely to be effective for the year ending 30 November 2026.

7 Dividends

An interim dividend of 2.2p per share, totalling approximately £372,000 (2025: £372,000) will be paid on 2 October 2026 to shareholders on the register at the close of business on 4 September 2026.

8 Earnings per share

Earnings per share are as follows:

	Unaudited six months ended 31 May 2026 Pence per share	Unaudited six months ended 31 May 2025 Pence per share
Basic (loss) / earnings per share	(2.2)	15.4
Diluted (loss) / earnings per share	(2.2)	14.8
Adjusted basic (loss) / earnings per share	(0.1)	17.1
Adjusted diluted (loss) / earnings per share	(0.1)	16.4

Adjusted earnings per share excludes non-underlying items and share-based payment charges.

The calculations of basic and adjusted earnings per share are based upon:

	Unaudited six months ended 31 May 2026 £000	Unaudited six months ended 31 May 2025 £000
(Loss) / earnings for basic and diluted earnings per share	(381)	2,616
Share-based payments	120	284
Non-underlying items	296	-
Tax thereon	(48)	-
Earnings for adjusted basic and diluted earnings per share	(13)	2,900

	Unaudited six months ended 31 May 2026 000	Unaudited six months ended 31 May 2025 000
Weighted average number of ordinary shares - basic calculation	17,026	16,957
Dilutive potential ordinary shares arising from share options	30	698
Weighted average number of ordinary shares - diluted calculation	17,056	17,655

9 Availability of results

Copies of this statement are available on the Group's website (www.synecticsplc.com) and will be available shortly from Synectics plc, Synectics House, 3-4 Broadfield Close, Sheffield, England S8 0X.

 

END