Synectics PLC said on Tuesday that it had restored profitability restored in the second half of its financial year and narrowed its loss in the year as a whole.

The Sheffield, England-based security systems company reported a narrowed loss before tax of £595,000 for the year ended November 30. In the company’s previous financial year, it posted a loss before tax of £6.3 million.

Synectics said this was primarily as a result of cost reductions from the restructuring implemented in 2020 and a recovery of revenues in the company’s Security division.

Revenue for the year, however, fell by 2.4% to £43.6 million from £44.6 million. The company said this reflected a full financial year of Covid-19.

Chief Executive Paul Webb said: ‘The second half of the year saw the company return to profit, on a restructured cost base, delivering a significant reduction in loss. The board is confident that the company’s excellent customer relationships in attractive markets, coupled with its talented and committed teams, provide sound foundations for a strong recovery and sustained growth.’

The company recommends a final dividend of 1.5 pence per share and adds it does not intend to declare an interim dividend for the financial year ending November 30, 2022.

Shares in Synectics were down 3.1% at 109.00 pence on Tuesday afternoon in London.

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