Shares in Synectics (AIM:SNX), the AIM-listed security and surveillance technology group, fell 14% to 177p after the company said geopolitical uncertainty has led some energy sector customers to delay project and infrastructure investment decisions.
The company said the timing of certain contract awards and project activity in the energy sector is unclear, although it noted the scale and quality of the underlying opportunities remain unchanged.
Subject to energy sector activity normalising in the second half, the board expects full-year trading to be in line with market expectations of £62 million in revenue and £4.1 million in adjusted EBITDA.
Revenue and profitability will be weighted towards the second half, consistent with the historical profile of the business.
Trading in the first five months of the year ending 30 November 2026 has been broadly in line with management expectations, with strong activity elsewhere in the group.
In North American gaming, Synectics has secured contracts with several new customers, including its largest contract win to date in Canada, with its surveillance technology selected for a large-scale casino and integrated resort in Ontario.
The group has also won contracts totalling more than £1.4 million with a UK regional authority covering approximately 220 buses, focused on operational efficiency and passenger and driver safety.
Amanda Larnder, chief executive, said it was "particularly encouraging to see this momentum that we're building with new and existing customers" but that management continues to closely monitor the geopolitical backdrop given the company's energy sector exposure.