Synectics : Interim Results 2025 Investor Presentation

‌A Leader in Advanced Security and Surveillance Solutions

Synectics plc Interim Results 2025

Synectics plc Interim Results 2025

‌Welcome

Amanda Larnder

Chief Executive Officer

Chris Pennington

Interim Finance Director

2

Agenda

• Introduction to Synectics

• Highlights

• Business Review: Synectic Systems

• Business Review: Ocular

• Financial Performance Review

• Clear Strategic Focus

• Summary and Key Takeaways

• Appendices

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Advanced Security and Surveillance Solutions

Our Purpose

Protecting what matters, where it matters most.

Our Vision

To deliver the most trusted advanced security and surveillance

solutions in the world's most critical environments.

North America

UK & Ireland

Europe

Middle East

Asia-Pacific

Synectics plc Interim Results 2025

Critical Infrastructure

• Utilities

• Custodial

• Emergency Services

• Healthcare

• Data Centres*

  Energy

• Offshore Oil & Gas

• Onshore Oil & Gas

• Refineries

• Vessels

• Renewables*

  Public Space

• Smart Cities

• Local Authorities

• Education

• Retail

  Transport

• Transport Hubs

• Mass Transit Vehicles

• Mobility Infrastructure

  2

  Distinct

  businesses

  313

  Employees worldwide

  50+

  Certified Partners and

  Authorised Resellers

  Sales and support

  7

  hubs worldwide

  Leisure & Hospitality

• Casinos

• Resorts

• Stadiums & Venues

• Heritage

  * Data Centres and Renewables represent potential areas of opportunity for Synectics, for which we are currently completing competitive market assessments.

  
  
  

  ‌4

  Synectics plc Interim Results 2025

  Highlights

  • Strong financial results for the first half, underpinned by the planned delivery of a major customer contract

    • Interim dividend increased to 2.2 pence per share (H1 2024: 2.0 pence per share)

  • Solid customer demand, including several key contract wins:

    • £2.0 million secured with West Midlands Police

    • US$2.2 million with high-profile gaming resort in South-East Asia, as well as $4.8 million contract extension

    • £1.1 million pilot with Stagecoach, the UK's largest bus and coach operator

  • Encouraging early progress of our refreshed focus to strengthen partner network and build regional presence - new senior appointments in the UAE, NAM and partner programme

  • Announcement of Paul Williams as Chief Financial Officer, who will join Synectics on 26 August 2025

    Outlook for FY 2025

  • Solid order book at 31 May 2025, for delivery across the remainder of FY 2025 and into FY 2026

  • Continued contract momentum across key sectors, underpinning confidence in FY 2025 performance

  • Trading remains comfortably in line with FY 2025 market

    expectations1

    Revenue by sector

    
    
    
    
    

    *FY 2025 market expectations are revenue of £65.0m and adjusted PBT of £5.3m before share-based payments of c.£0.5m.

    
    
    

    ‌Business Review

    Synectic Systems

    Develops and delivers its proprietary, technology-led solutions to specialist markets globally

    	H1 2025	H1 2024	Inc/(dec)
    Revenue (£m)	23.6	17.4	36%
    Underlying gross margin	47.4%	48.4%	(1) ppts
    Underlying operating profit (£m)	3.9	2.9	35%
    Underlying operating margin	16.7%	16.7%	- ppts

• Strong revenue growth, maintaining strong gross margins

  Revenue by sector H1 25 vs H1 24

  Transport Energy Public Space Critical

  Infrastructure

  Systems H1 24 Systems H1 25
  
  

  5

  Synectics plc Interim Results 2025

  Leisure & Hospitality

• Delivery of substantial proportion of major contract with a leading casino operator, in line with expectations. Additional five-year contract extension with customer, worth at least US$4.8 million

• Continued contract momentum, although slower than expected in Energy and Critical Infrastructure due to the volatile geopolitical market and cost inflation. Encouraging early engagement in renewable areas of wind and carbon capture.

• Operating margins maintained at 16.7%, reflecting investment in strategic priorities

• Progress in strategic priorities including appointment of a Director in UAE, a Business Development Director in NAM and a Head of Partner Programme, the progression of the subscription pricing model and the ERP / CRM refresh

• Technology investment in new product portfolio including AI, Synergy Web, Synergy Mobile and Transport.

  
  
  

  ‌6

  Business Review

  Synectics plc Interim Results 2025

  Ocular

  Independent security systems integrator delivering solutions to end-users in the UK and Ireland

  	H1 2025	H1 2024	Inc/(dec)
  Revenue (£m)	12.6	9.7	29%
  Underlying gross margin	26.7%	28.5%	(1.8) ppts
  Underlying operating profit (£m)	0.8	0.7	17%
  Underlying operating margin	6.1%	6.7%	(0.6) ppts

  • Revenue growth in the period driven by strong growth in transport and critical

    national infrastructure markets; gross margins remained healthy

  • Positive contract momentum:

    • £2.0 million contract win with West Midlands Police

    • New contract with Stagecoach to pilot On-Board Hub solution

    Revenue by sector H1 25 vs H1 24

  • Operating margins dipped slightly to 6.1%, reflecting investment in strategic priorities

    Transport Public Space Critical

    Infrastructure

    Ocular H1 24 Ocular H1 25
    
    

    Leisure &

    Hospitality

  • Positive progress following rebrand to Ocular, with work ongoing to refine and align go-to-market strategy with core sector focus

  • Progress in strategic priorities including strengthening of sales and business development team, increased marketing capabilities to support focused sector expertise, and progress on ERP / CRM refresh

rgy

Synectics plc Interim Results 2025

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‌Project Highlights

Transport

Delivering Next-Gen

Technology for Stagecoach

Stagecoach is piloting Ocular's On-Board Hub, an innovative, single-platform solution, designed to enhance fleet efficiency while improving both operator oversight and the passenger experience.

It leverages Synectics' cloud services and software, providing a secure, scalable environment capable of running multiple third-party applications simultaneously.

Policing

Surveillance Upgrade for West Midlands Police

Ocular is upgrading West Midlands Police's existing surveillance infrastructure with leading-edge technology through the installation of new systems, including

Synectics' flagship Synergy software, in custodial suites and police stations throughout its estate.

‌Income Statement

8

Synectics plc Interim Results 2025

• H1 results delivering further growth in revenues and profits

• H1 Group revenues of £35.5m, reflecting 36% growth in Synectic Systems and 29% growth in Ocular

• Gross profit increased by 30%; gross margin % remains strong, with reduction vs H1 2024 reflecting mix of sales

• Increase in Underlying operating profit of

  48% to £3.3m despite ongoing investment

• Operating profit margin % rose to 9.2%

• Significant growth in adjusted diluted EPS from 10.3 pence to 16.4 pence

  £000	H1 25	H1 24	Change
  Revenue	35,485	26,272	35%
  Gross profit	14,541	11,177	30%
  %	41.0%	42.5%	(1.5) ppts
  Underlying operating profit2	3,258	2,206	48%
  %	9.2%	8.4%	0.8 ppts
  Profit before tax	2,999	2,105	42%
  EPS - adjusted diluted3	16.4p	10.3p	6.1p

  1 Adjusted EBITDA represents profit before interest, tax, depreciation, amortisation, finance costs, share based payment charge and non-underlying items.

  
  
  

  2Underlying operating profit represents profit before tax, finance costs, non-underlying items and share-based payment charge of £(284)k in H1 2025 (H1 2024 £(44)k).

  3Adjusted EPS shown excluding non-underlying items and share-based payment charge

  
  
  

  Synectics plc Interim Results 2025

  9

  ‌Revenue Sectors

  Revenue by Sector H1 2024 vs H1 20254

  • Transport revenues up 28% reflecting increased activity with major UK bus operators (Ocular)

    and Berlin public transport (Systems)

  • Energy revenues down (13)% reflecting slowdown in O&G in H1; pickup anticipated in H2

  • Public Space revenues down (26)% reflecting timing of activity across multiple customers

  • Critical Infrastructure revenues up 43%, driven by Ocular, reflecting uplift in major project activity

  • L&H revenues up 137% reflecting expected activity on large casino project in H1

    
    
    

    4Revenues shown on a consolidated basis, excluding intercompany sales from Systems to Ocular

    Synectics plc Interim Results 2025

    10

    ‌Revenue & Order Book Profile

    H1 2025

H2 2024

H1 2024

H2 2023

H1 2023

• Strong growth in revenues in H1 2025, driven by L&H activity

• Stable performance in Recurring and Repeat revenues

• Order book reflects contract momentum, despite substantial unwinding of large casino contract during H1; strong underpinning of H2 revenues

  
  
  

  Synectics plc Final Results 2024

  11

  ‌Operating Profit
  
  

• Operating profit shown on an underlying basis, before non-underlying items and share-based payment charge

• Movement in total cost base reflects investment in business improvement, alongside ongoing inflationary increases

• Staff costs: salary increases, commissions, new investment, recruitment costs

• Overheads: various including software costs, ERP system, professional fees and marketing

• Depreciation/amortisation increased by £(0.3)m, reflecting recent investments in plant and software

  
  
  

• Increased investment in technology: £2.3m total R&D spend in H1 2025 (H1 2024 £1.8m), including £0.6m capitalised (H1 2024 £0.5m)

Synectics plc Interim Results 2025

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‌Net Cash

• Strong cash generation from operating activities

• Working capital inflow from reduced inventories and contract assets, offsetting lower payables

• Capex includes capitalised development spend £0.6m, plus other intangible assets £0.2m (ERP)

• Free cash inflow £3.7m (H1 2024: £3.1m)

• Adverse FX movement £(0.3)m reflects retranslation of USD cash balances across the period

• Robust balance sheet - net assets of £43.7m at end of H1 vs £41.3m at FY 2024 year-end

• Balance sheet includes £12.1m net cash and no debt

Synectics plc Interim Results 2025

‌Clear Strategic Focus

Areas of focus for FY 2025

Progress the next phase of Ocular's strategy, building on early progress to refine market

positioning and embed a more targeted, sector-led go-to-market approach

Build activity in our core markets by strengthening our business development and sales

and marketing resources, and establishing a presence in the UAE

Develop strategic partners and drive a partner-led sales model - Head of Partner Programme appointed to deliver partner strategy

Invest in new technology and product evolution to drive an expanded product portfolio, and increased intuitiveness, scalability and continued alignment with market expectations

Achieve Cyber Assurance of Physical Security Systems ('CAPSS') certification to position Synectics as a trusted provider of cyber-secure security systems and reinforcing our competitive edge in critical infrastructure sectors

Improve operational efficiency, including implementation of group-wide ERP and CRM systems to significantly improve processes and operations

Grow future recurring revenues through enhancements to our pricing model, product portfolio and development of subscription-based offerings; early positioning in a market where such models are not yet widely adopted

Implement people initiatives including our first UK-wide Employee Summit and the launch of our new internal communications platform

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Strategic pillars

Positive and inclusive culture

Develop and expand our partner network to support global market growth by reaching customers more effectively

Develop and maintain excellent customer relationships through consistently high-quality service, trust and performance

Invest in technology to drive innovation and deliver differentiated, customer-focused solutions

Expand our market presence in both core and adjacent markets, by concentrating on areas where we have proven technical and operational expertise

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Synectics plc Interim Results 2025

Summary and Key Takeaways

Strong performance in H1 2025 and with increased interim dividend of 2.2 pence per share; positive start to H2.

Solid order book with trading for the full year comfortably in line with market

expectations.

Revenue expected to be evenly weighted between H1 and H2, with continued increase in costs in H2 in relation to investment aligned to our longer-term growth priorities. The benefit of this investment is expected to begin contributing in FY 2026 with a more material impact anticipated over the medium term.

Strong cash position providing flexibility to support organic investment and pursue strategic M&A opportunities as they arise.

Clear priorities, targeted investment, and a more focused sector-led approach position

the business to drive sustainable growth over the medium term.

"

‌Synectics plc

Synectics House 3-4 Broadfield Close Sheffield, South Yorkshire S8 0XN, United Kingdom

t. [phone]

e. [e-mail]

https://www.synecticsplc.com

‌Reasons to Invest

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Synectics plc Interim Results 2025

Synectics represents a compelling investment opportunity for those seeking

a combination of ambition, innovation, and reputation operating in strong

and growing markets across the globe.

1 Specialist Markets

• Demanding markets

• Large addressable market

• Strong long-term growth drivers

• High barriers to entry

2 Innovative Technology

• Technological advancement

• Tailored solutions

• Seamless integration

• Cybersecurity capabilities

3 A Trusted Brand

• Proven brand

• Long-standing partners

• Strong customer retention

• Blue-chip customers

4 Financial Strength

• Track record

• High operational leverage

• Investment

• Strong balance sheet

Synectics plc Interim Results 2025

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‌Our People

Our people strategy focuses on finding, keeping, and growing brilliant individuals. By building a high-potential talent pipeline, fostering cross-business collaboration, and preparing leaders for growth, we aim to empower every employee to connect their role to Synectics' success.

Empowering Growth

• Launched new L&D platform & Management Development Programme

• Offered targeted coaching & mental health training

• Aligned career paths with organisational growth & strategy

  Attracting & Retaining Talent

• Introduced a seamless, supportive onboarding process

• Trained managers in interview skills & values-based recruiting

  Prioritising Well-Being

• Expanded mental health initiatives & support resources

• Rolled out an annual Well-being Calendar (#WalkthisMay, monthly lunch & learns, Mental Health First Aider training)

  Engagement & Belonging

• Net Engagement Score increased by 46 points since 2021

• Fostered a workplace where everyone feels valued and connected

• Held first UK-wide Employee Summit

• Launched new internal communications platform

Synectics plc Interim Results 2025

‌Sustainability

During 2024, we continued to make progress and completed phase 2: Develop, by analysing the materiality assessment results and creating an ESG framework. We have continued to build on this momentum and have begun work on our ESG roadmap which we plan to finalise and to commence implementation during 2025 (phase 3).

ESG Framework

This ESG Framework is being used to plan our ESG Roadmap, reflecting upcoming regulatory reporting requirements, best practice guidance and important stakeholder requirements for Synectics.

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Phase 1: Understand

Materiality assessment completed. Results analysed and condensed into our key ESG topics.

Phase 2 (i): Assess

Begin a stocktake of our current ESG processes, policies and practices.

Phase 2 (ii): Develop

Prepare an ESG framework which ensures compliance with regulations, procurement requirements and adherence to best practice.

Phase 3 (i): Implement

Develop the ESG roadmap and begin its implementation, integrating sustainability into the Group's governance, risk management and operations.

Phase 3 (ii): Targets

Identify sustainability priorities and KPIs and set appropriate targets to report against going forward.

Phase 4: Measure and Report

Establish a process for data collection and constructive reporting.

‌The Board

Bob Holt OBE

Non-Executive Chair

Bob is a highly accomplished executive with over 35 years' experience in senior leadership roles across various sectors, including Revolution Beauty, Sureserve Group Plc, and Mears Group PLC, where he guided the company through its successful IPO on AIM and played a pivotal role in establishing Mears as a market leader in its sector. Bob was awarded an OBE for his significant contributions to charity, having founded both The Footprints Foundation to support vulnerable individuals, both locally and internationally, and The Holt Trust, which provides grants to disabled and able-bodied young people under 25, helping them overcome barriers to achieving their full potential in amateur sports.

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Synectics plc Interim Results 2025

Amanda Larnder

Chief Executive Officer and Chief Financial Officer (Executive Director)

Amanda is an experienced executive with over 10 years' involvement in technology and manufacturing sectors. She was appointed as CEO in November 2024, having initially been appointed to the board on 4 July 2022 as the Group's CFO. Amanda has gained significant knowledge of the Group and the sectors in which it operates through a number of years of experience in senior finance roles within the business. Prior to being appointed to the Board of Synectics, Amanda supported the Board of Directors of various companies through either a business sale or preparation for IPO. Amanda started her career with Ernst & Young and held senior management roles specialising in listed companies. She holds a degree in International Business and Modern Languages from Aston University and is a member of the Institute of

Chartered Accountants of Scotland ('ICAS').

Dr Alison Vincent CBE

Independent Non-Executive Director

Alison is an experienced IT industry leader with recent roles, including group chief information security officer at HSBC and chief technology officer at Cisco. She is a non-executive director for SEI Investments (Europe) Ltd and Connected Places Catapult, where she is also the Chair of The Digital Twin Hub. She is a lay member of council at Southampton University and is a technical adviser to Telesoft Technologies Ltd and Arqit Ltd. She is a Fellow of the Royal Academy of Engineering, the British Computer Society and the Institution of Technology and Engineering.

Jon Kempster

Independent Non-Executive Director | Audit Committee Chair

Jon has more than 25 years' experience as a public company director. He is currently a Non-Executive Director of AIM quoted Norman Broadbent plc, Cambridge Cognition Holdings plc, Pennant International Group plc and a Director of Delta Pension Nominees Limited. Jon qualified as a chartered accountant with Price Waterhouse in 1990 and has held several board positions in both an executive and non-executive capacity, including at Wincanton plc, Frasers Group plc, Redcentric plc and more recently Ted Baker plc, DX (Group) plc.

Andrew Lockwood

Independent Non-Executive Director | Remuneration Committee

Chair

Andrew has over 30 years' experience of reshaping and growing technology, managed services and healthcare businesses, most recently as CEO of KFM, a provider of healthcare support services. Prior to joining KFM, he was MD of Capita plc's international healthcare technology and services businesses, Commercial Director for data solutions at Daisy Communications Plc, Interim Chief Executive Officer at Retalika Limited, a SaaS business, President and co-founder of Graphita Inc, and Executive Vice President and General Manager at Covad Communications in the US.

‌Leadership Team

Directors

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Synectics plc Interim Results 2025

Amanda Larnder

Chief Executive Officer

David Gavin

Director, Operations & Finance Synectic Systems

David Aindow

Business Strategy Director Synectic Systems

Clare Bryan-Wright

Group Director of HR

Synectics plc

Chris Jepson

Managing Director Ocular Integration

Synectic Systems Group Ltd. Ocular Integration Ltd.

Daniel Gold

Regional Director - NAM

Teri Ho

Head of Sales - APAC

Adrian McClenaghan

Head of Sales - EMEA

Darren Alder

Head of Oil & Gas

Mark Pennington

Commercial and Technical Director

Colin Butlin

Operations Director

Chantal Anabtawi

Sales and Business Development Director

Nicola Kolasa

Finance Director

Synectics plc Interim Results 2025

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‌Major Shareholders

Substantial shareholdings

Shareholdings in the Company of greater than 3% as advised at 18 June 2025 are as follows:

Holder	%
Whitehall Associated SA	25.29%
Interactive Investor	7.58%
Downing LLP	7.34%
Hargreaves Lansdown	6.97%
Dowgate Capital	6.80%
Quadnetics EBT	5.29%
Barclays Smart Investor	4.34%
AJ Bell	4.04%
M McHale	3.15%

The issued share capital of the Company consists of 17,794,439 ordinary shares of 20 pence each with voting rights.

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Synectics plc Interim Results 2025

Synergy Software

Surveillance At the Heart of Control Rooms

Synergy is a highly scalable, flexible and user-friendly integrated security and surveillance system.

Over 270 active installations worldwide

with 250,000 channels being managed and recorded

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Synectics plc Interim Results 2025

COEX TM Camera Stations

Protection in the Toughest Conditions

More than 10,000 COEX cameras delivered in the last 10 years

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Synectics plc Interim Results 2025

Technology Investment

We continue to invest in the latest technology and services to position the Company for further growth in each market.

AI and Analytics

Invest in further AI technology natively and with third-party AI tools, including video forensic search.

Hybrid Synergy

By combining our on-premise and cloud solution, we'll offer a modular, scalable market offering that balances operational costs with the flexibility of cloud services.

SaaS

New central, modern licensing engine for our portfolio of products. Designed to support on-premise and cloud deployment.

Transport Solutions

Continue to develop our Transport Cloud Services offering and invest in our new On-Board Hub technology.

User Experience

A management hub to be introduced that will aid complex deployments and improve the customer experience while empowering our partners.

Edge AI

The third generation of COEX 4K cameras will support advanced edge-based Video Analytics, enhancing the Synergy AI Suite.

‌Our Strategy - Core Market Sectors 25

Public Space

Target Markets

Market Drivers

• Smart Cities

• Local Authorities

• Education

• Retail

• Urbanisation

• Growing Security Threats

• Regulatory Compliance

• Infrastructure Development

• Digital Transformation

• Political environment

Synectics plc Interim Results 2025

Operating in markets where security

and surveillance are critical

Redefined sector focus to better align with current market dynamics and emerging opportunities.

Critical Infrastructure

Target Markets

Market Drivers

• Utilities • Urbanisation

• Custodial • Rising Security Threats

• Emergency Services • Regulatory Compliance

• Healthcare • Economic Growth

• Data Centres* • Technological

Advancements

Transport

Target Markets

Market Drivers

• Transport Hubs • Infrastructure Investment

• Mass Transit Vehicles • Digital Transformation

• Mobility Infrastructure • Urbanisation

  • Population Growth

  • Tourism Growth

  • Move to Net Zero

Energy

Target Markets

Market Drivers

•

•

•

•

•

Offshore Oil & Gas Onshore Oil & Gas Refineries

Vessels Renewables*

•

Expanding Energy Projects

• Global Energy Transition

• Regulatory Demands

• Environmental Concerns

• Growing Security Threats

Leisure & Hospitality

Target Markets

Market Drivers

• Casinos • Regulatory Compliance

• Resorts • Global Travel Growth

• Stadiums & Venues • Enhanced Guest Experience

• Heritage • Fraud and Theft

  • Growing Security Threats

* Data Centres and Renewables represent potential areas of opportunity for Synectics, for which we are currently completing competitive market assessments.

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Key customers include:

‌Synectics plc Interim Results 2025

‌Our Strategy

Existing market

27

Existing market, new region Potential new market

Synectics plc Interim Results 2025

Market Presence - Three to Five Year Plan

Critical Infrastructure Energy

Public Space Transport

Leisure & Hospitality

Potential new markets*

Renewables Data Centres

$670m

$160m

Serviceable

Market

Synectics share < 2%

$740m

$675m

$315m

Serviceable Market

$2.6bn

Excluding Data Centres, renewables and new UAE investment

Market Presence - progress

Strengthened global sales & BD resources New markets identified

Establishing presence in UAE

Multi-channel campaigns

Synectics share

Ocular market assessment

* Data Centres and Renewables represent potential areas of opportunity for Synectics, for which we are currently completing competitive market assessments.

North America Europe Middle East

Asia-Pacific

Synectics plc Interim Results 2025

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‌Our Strategy

Accelerating our growth

We have a refreshed strategy committing to excellence and innovation, based around our key principles of Know More. Serve Better. Innovate Always.

Underpinning this strategy are four priorities focussed on delivering ambitious organic growth to achieve sustainable increases in revenue, EBITDA and cash flow.

Develop our partner relationships to provide an effective channel to our global markets

• Broaden our global partner network

• Strengthen relationships and enhance collaboration

  • Become provider of choice

  • Establish new technology partnerships

    Focus on providing the highest quality service to

    our customers

  • Develop existing and new relationships

    • Exceed customer expectations

    • Gain deeper insights into customer challenges

      • Provide tailored solutions

      • Leverage cross-selling opportunities

        Clear focus on target sectors where Synectics possesses the highest level of skill and knowledge

        
        
        

        • Deepen expertise in key sectors and regions

        • Improve engagement with end users

        • Invest in sales and marketing

        • Explore opportunities in new and adjacent markets

          Invest in technology to position ourselves as leaders

          in technological advancements

        • Track emerging technology trends

        • Develop solutions meeting evolving customer needs

        • Build scalable and sustainable technologies that drive higher levels of recurring revenue

        • Empower our people with the tools to innovate

        • Streamline and automate processes