The Marina Bay Sands casino in Singapore is one of the largest and most profitable in the world. It is the size of four football fields and has around 500 gaming tables and 1,600 slot machines. But Singapore’s gambling laws are strict. Every card game, every roll of the dice, every spin of the roulette wheel must be recorded, and if there is any kind of problem, the games must be stopped.
With so much at stake, Marina Bay Sands cannot afford to make mistakes. Synectics, a small technology company based in Sheffield, assures that this is not the case. Synectics specializes in high-end security and surveillance systems, designed to keep people and places safe.
The shares cost £1.80 and should increase in value as the company’s technology is globally recognized and chief executive Paul Webb has a clear plan for growth.
Casinos need high-quality systems to ensure that customers respect the rules and that staff are honest. Synectics can also help clubs make big spenders feel welcome, using facial recognition technology to alert managers when regular customers come in.
But Webb’s equipment is used in many other fields. Energy companies must monitor oil and gas fields at all times to ensure they are running smoothly. The sites can be dangerous and the equipment must be exceptionally durable.
On a roll: Casinos need high-quality surveillance to ensure customers respect the rules and staff are honest
Synectics cameras can withstand extreme conditions, from burning deserts to frozen seas, and their technology continuously transmits information to control rooms thousands of kilometers away.
The group’s kit is also used at facilities that convert gas to liquid and at ports, such as Milford Haven in Wales, where that liquefied gas is delivered in tankers that can be more than 300 yards long and carry their cargo at -162 C. (-260°F).
Synectics has built a reputation in both gaming and energy, with clients ranging from Wynn Las Vegas in the US to Saudi Aramco in the Middle East. But the company started out offering surveillance systems for public spaces and continues to provide that service, used by more than 100 towns and cities across the UK, including two-thirds of London boroughs and the City of London Police.
Train operators, airports and bus companies use Synectics systems, National Grid is a recent customer and hospitals are also turning to Webb’s business to ensure patients and staff are safe. The company may operate in many fields, but one clear line runs through all its work: the ability to offer tailor-made security products that are reliable, resistant and adaptable to the needs of each client.
These are not surveillance cameras available on the market, but rather very sophisticated systems that include hundreds of interconnected devices capable of providing detailed data and information in real time and after the event. Despite the undoubted quality of the Synectics team, the company has suffered in recent times. Casinos were forced to close for months during the Covid pandemic and oil and gas activity slowed as prices fell after 2014.
Now, casinos are back in business and energy companies are in growth mode, following the Russian invasion of Ukraine.
Results for the year to November 2023 will be published later this month, but a trading update from the end of last year was encouraging. Webb expects the figures to exceed forecasts and has already racked up almost £30m in orders by 2024.
Brokers expect a 21 per cent rise in 2023 revenue to £47.5 million, with profits almost tripling from £1 million to £2.8 million. Webb is also keen to reward shareholders with decent dividends, so a 50 per cent rise is planned for this year to 3p, rising to 4.5p in 2024.
Midas Verdict: UK tech companies tend to be overshadowed by their Silicon Valley peers, but companies like Synectics are proof that we too can punch above our weight in this fast-growing field. At £1.80, Synectics is a business worth supporting.
Traded in: AIM Heart: SNX Contact: synecticsplc.com or 0114 2802828