Synectics

Website: Synectics
Index: AIM
EPIC: SNX
Supersector: Industrial Goods and Services
Sector: Support Services
Subsector: Business Support Services
Market Cap: £28.93M
Payout Frequency: Semi-Annual

Next Synectics Dividend

Synectics next goes ex-dividend on 30/04/2026. This will be the Final dividend for 2026.

The dividend per share amount is 2.8000p (GBP) and the payment date is 29/05/2026.

Headline Dividend Details

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.

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 (167.5p) = 2.81%

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

Number of Shares:

Payment	Paid	Amount
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