Synectics
Website:
Synectics
Index:
AIM
EPIC: SNX
Supersector:
Industrial Goods and Services
Sector:
Support Services
Subsector:
Business Support Services
Market Cap:
£34.93M
Payout Frequency: Semi-Annual
Synectics Dividend Analysis and Summary
Headline Dividend Details
- Final dividend: 2.8p per share (FY24: 2.5p)
- Total FY25 dividend: 5.0p per share (up 11.1% vs 4.5p)
- Ex-dividend date: 30/04/2026
- Record date: 01/05/2026
- Payment date: 29/05/2026
- Subject to shareholder approval at the AGM on 20/05/2026
- Board reiterates a progressive dividend policy
Coverage and Cash Support
- Adjusted diluted EPS: 28.0p; total dividend 5.0p ? c. 5.6x cover.
- Basic EPS: 22.0p ? c. 4.4x cover.
- Year-end cash: £14.1m with no bank debt; undrawn overdraft facility of £3m (renewal in process).
- FY25 free cash inflow: £7.7m; cash cost of proposed final dividend c. £0.48m ? ample cash coverage.
Dividend Sustainability and Growth Outlook
- Near term: FY26 is a “transitional investment” year; revenue expected ~10% lower and mid-single-digit EBITDA margin. Despite softer earnings, the low payout ratio and strong net cash support dividend sustainability.
- Medium term: Management guides to double-digit revenue growth in FY27 with EBITDA above normalised FY25 (ex the one-off gaming contract) and further margin acceleration by FY28. Strategy shift toward higher-margin software/recurring revenue and partner-led deployments should enhance dividend capacity over time.
- Policy: Explicit commitment to a progressive dividend maintained; FY25 total dividend up 11.1% signals confidence, though FY26 growth may be modest as investments are absorbed.
Capital Allocation and Support
- Investment planned in FY26 of c. £3.3m cash for strategic initiatives (part expensed, part non-underlying/capex), plus premises investment for Ocular ahead of a December 2026 lease expiry.
- Exploring selective bolt-on acquisitions aligned to strategy; current balance sheet provides flexibility without jeopardising the dividend at present payout levels.
- Ongoing ERP implementation and transformation costs are being managed; FY25 still delivered strong cash generation.
Structural Changes / Policy Signals
- No demergers, M&A completions, or share consolidations announced.
- Business model pivot to a product-led, partner-enabled approach with simplified deployment and an expanded SI partner programme—expected to increase scalability and recurring revenue visibility, supportive for future dividends.
Key Risks and Flags for Dividend Stability
- FY26 earnings dip: Guidance for lower revenue and margins during the transition could compress near-term cover, though starting cover is high.
- Order book/contract concentration: Order book fell to £26.5m (from £38.5m) after completing a major gaming contract; one customer contributed >10% of revenue (£14.3m)—replacement timing is a watchpoint.
- End-market cyclicality: Exposure to gaming, oil & gas (some projects deferred to 2026) and critical infrastructure introduces approval/timing risks.
- Execution risk: Transformation and ERP rollout could create disruption/cost overruns if not tightly managed.
- FX/tax mix: International footprint and variable tax rates can affect earnings, though dividend is in GBP.
Read more
Synectics Annual Dividend Yield - 2.35%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/04/2025 |
16/05/2025 |
Final |
2.50p |
GBX |
| 24/07/2025 |
22/08/2025 |
Interim |
2.20p |
GBX |
Total (Annual Dividends Per Share):
4.70p
Dividend Yield =
Annual Dividends Per Share (4.70p)
÷ Share Price (200p)
= 2.35%
Synectics Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 30/04/2026 |
29/05/2026 |
Final |
2.8000p |
GBX |
| 24/07/2025 |
22/08/2025 |
Interim |
2.20p |
GBX |
| 24/04/2025 |
16/05/2025 |
Final |
2.50p |
GBX |
| 25/07/2024 |
23/08/2024 |
Interim |
2.00p |
GBX |
| 11/04/2024 |
03/05/2024 |
Final |
3.00p |
GBX |
| 06/04/2023 |
05/05/2023 |
Final |
2.00p |
GBX |
| 07/04/2022 |
06/05/2022 |
Final |
1.50p |
GBX |
| 02/04/2020 |
07/05/2020 |
Final |
3.50p |
GBX |
| 22/08/2019 |
20/09/2019 |
Interim |
1.30p |
GBX |
| 04/04/2019 |
07/05/2019 |
Final |
3.50p |
GBX |
| 16/08/2018 |
14/09/2018 |
Interim |
1.20p |
GBX |
| 29/03/2018 |
04/05/2018 |
Final |
3.00p |
GBX |
| 17/08/2017 |
15/09/2017 |
Interim |
1.00p |
GBX |
| 30/03/2017 |
05/05/2017 |
Final |
2.00p |
GBX |
| 24/03/2016 |
06/05/2016 |
Final |
1.00p |
GBX |
| 26/03/2014 |
07/05/2014 |
Final |
5.50p |
GBX |
| 21/08/2013 |
20/09/2013 |
Interim |
3.00p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
2.000 |
3.000 |
GBX |
5.000 |
150.000 |
| 2023 |
|
2.000 |
GBX |
2.000 |
33.330 |
| 2022 |
|
1.500 |
GBX |
1.500 |
-57.140 |
| 2020 |
|
3.500 |
GBX |
3.500 |
-27.080 |
| 2019 |
1.300 |
3.500 |
GBX |
4.800 |
300.000 |
| 2018 |
1.200 |
|
GBX |
1.200 |
-70.000 |
| 2017 |
1.000 |
3.000 |
GBX |
4.000 |
100.000 |
| 2016 |
|
2.000 |
GBX |
2.000 |
100.000 |
| 2015 |
|
1.000 |
GBX |
1.000 |
-88.230 |
| 2013 |
3.000 |
5.500 |
GBX |
8.500 |
|
Synectics Dividend Calculator
Synectics Dividend Growth
| Dividend Growth (1Y) |
-40.43%
|
| Dividend CAGR (5Y) |
13.3%
|
| Years of Growth |
–
|
| Payout Ratio |
21.59%
|
| Buyback Yield |
1.91%
|
| Shareholder Yield |
4.35%
|
| P/E Ratio (TTM) | 9.4 |
|---|
| Forward P/E | 22.73 |
|---|
| P/FCF | 4 |
|---|
| Earnings Yield | 10.61% |
|---|
| FCF Yield | 24.99% |
|---|
| ROE | 8.71% |
|---|
| ROCE | 11.98% |
|---|
| Profit Margin | 5.44% |
|---|
| Operating Margin | 8.25% |
|---|
| Gross Margin | 42.84% |
|---|