Synectics (AIM:SNX) shares fell 12% to 195p on Tuesday after the surveillance and security group posted sharply higher full-year earnings but warned FY26 revenue would drop as a major one-off gaming deployment rolls out of the comparison.
Revenue rose 22% to £68.1m in the year to 30 November 2025, and adjusted EBITDA climbed 36% to £8.5m, aided by the delivery of a large South-East Asia gaming project that contributed around £12m of revenue.
Net cash ended the year at a record £14.1m with no bank debt, while the order book closed at £26.5m after completion of that non-recurring contract. The board proposed a 2.8p final dividend, taking the full-year payout to 5.0p.
By division, Synectic Systems revenue increased 21% to £43.4m, with leisure and hospitality a standout, while Ocular Integration revenue rose 24% to £26.4m as transport and infrastructure demand strengthened.
Looking ahead, management said FY26 would be a “transitional investment year” as Synectics invests in a more scalable, product-led and partner-enabled model. The company expects FY26 revenue to be around 10% lower than FY25, with mid-single-digit EBITDA margins, before returning to double-digit revenue growth in FY27.