Sheffield tech firm Synectics has made major changes at board level as the Middle East conflict and the loss of a major gaming contract hit revenues and profits slumped.
For the six months to 31st May 2026, it reported revenue of £22.2 million, compared to £35.5m in the first half of 2025, and adjusted EBITDA of £1m (H1 2025: £4.2m).
The company told the LSE in a statement: “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.”
Net cash at 31st May 2026 was £10.5m with no bank debt, it added (31st May 2025: £12.1m).
Amanda Larnder, who took over as CEO of Synectics in late 2024 following the death of long-time leader Paul Webb, said the firm was on track with its transformation plan, announced earlier this year: “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 circa £2 billion,” she said.
“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.”
In more positive news, the company has in the last financial year won a £1.5m contract with Stagecoach, the UK’s largest bus and coach operator; signed a deal to supply an in-country traffic monitoring camera system with a Southeast Asian government department, and won a contract for a £1.2m carbon capture, transport and storage project and offshore wind contract.
“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,” added Larnder.
“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.”
Following the disappointing results, however, Bob Holt OBE is to step down as non-executive chair, with Jon Kempster appointed interim chair with immediate effect. Kempster joined the board in July 2024 and has more than 25 years’ experience as a public company director.
Meanwhile Peter Kear has been appointed as senior independent non-executive director with immediate effect.
Kear co-founded Celebrus Technologies plc (formerly IS Solutions plc and D4t4 Solutions plc) in 1985. During his tenure as CEO, the business grew its market capitalisation from around £40m to £160m before he stepped down in 2022.
Andrew Lockwood will also step down as an independent non-executive director with immediate effect.
