Synectics Posts Strong FY25 Results with 22% Revenue Growth and Unveils Strategic Transformation Plan

The order book at year-end was £26.5 million, down from £38.5 million. Management says the drop mainly reflects completion of the big gaming contract, with some additional timing delays in oil and gas approvals. Worth noting: one customer represented £14.3 million of FY25 revenue, a reminder of concentration risk when large projects land in the P&L and then roll off the order book.

The transformation plan: building a scalable, product-led Synectics

FY25 wasn’t just about delivery; it also set the stage for how Synectics intends to grow more predictably. The company is leaning into a product-led, partner-enabled model guided by five priorities: People, Product, Partner-led growth, market Presence, and Productivity.

What’s changing and why it matters

• Product simplification: by end-FY26, average installation time for the Synergy platform is targeted to drop from up to 20 days to 4.5 days. That should make deployments faster, cheaper, and far easier for partners to scale.
• Hardware re-engineering: the COEX camera range is being redesigned to cut costs and prepare a next-gen line for evolving energy-market needs.
• Partner ecosystem: an expanded global systems integrator programme launched in FY25; the technology partner network is in its early stages. The aim is to sell and deliver more through partners rather than growing headcount at the same rate.
• Commercial discipline: clearer sector focus, stronger account planning, and a new customer success function to feed real-world insight into the roadmap.
• Security credentials: Synergy is in the final stages of NPSA’s Cyber Assurance process, with SIRA certification in the UAE close – both helpful when bidding for highly regulated work.

If the plan delivers, Synectics should see higher software mix, more recurring revenue, faster delivery, and better operating leverage – all supportive of margin resilience over time.

Outlook: an investment year in FY26, then acceleration

Management sets clear expectations: FY26 will be a “disciplined transition” year. Revenue is expected to be around 10% lower than FY25, because the big gaming contract does not repeat. EBITDA margins are expected to be mid-single-digit as Synectics invests about £3.3 million of cash in transformation initiatives (around £0.8 million of that hits adjusted EBITDA).

From FY27, the company expects double-digit revenue growth and EBITDA above normalised FY25 levels (once the one-off contract is excluded), with further acceleration in both revenue and margins in FY28 as the strategy beds in.

My take: quality progress, with near-term lumps and bumps

What I like

• Cash-rich, debt-free balance sheet provides firepower to invest and keep paying a growing dividend.
• Strong execution evidenced by on-time delivery of a complex, mission-critical gaming project and a multi-year extension with the same customer.
• Clear, quantified transformation levers (notably Synergy deployment time) that should improve scalability and margins.
• Good traction in growth areas – transport upgrades, critical infrastructure, renewables foothold, and a growing Middle East presence.

What to watch

• Order book decline and customer concentration underline the risk of earnings volatility when large projects roll off.
• Energy market timing remains choppy; several oil and gas projects slipped into 2026.
• Margin pressure at Ocular from lower-margin projects shows the importance of mix and execution.
• Execution risk: the shift to a partner-led, product-centric model needs sustained delivery to hit the FY27-FY28 targets.

Net-net, these results show a business with competitive tech, improving commercial discipline and a stronger financial base. FY26 will likely look softer on the top line and margins by design, but if the deployment, partner and product initiatives hit their marks, Synectics should come out of the transition with better visibility, higher-quality earnings and more scalable growth.

Divisional and sector snapshots

	Synectic Systems	Ocular
Revenue	£43.4 million (+21%)	£26.4 million (+24%)
Adjusted EBITDA	£9.1 million (21.1% margin)	£2.3 million (8.6% margin)
Gross margin	50.3%	27.7%

Sector revenue (Group)	FY25
Leisure & Hospitality	£25.0 million
Transport	£15.5 million
Critical Infrastructure	£9.8 million
Energy	£11.1 million
Public Space	£6.8 million

Bottom line

Strong FY25 delivery, record cash and a bigger dividend set a solid platform. Expect a dip in FY26 as investment ramps up and last year’s one-off contract drops out, but the roadmap points to double-digit growth and stronger EBITDA from FY27. For investors comfortable with a transition year, Synectics looks to be moving in the right direction.