LONDON (Alliance News) - Scisys PLC Thursday showed increased revenues but lower profit in the half year ended June 30 and started a restructuring in anticipation of a mixed second half.
The IT services company posted revenues of GBP21.4 million, up from GBP19.6 million in the previous year. The company had a pretax profit of GBP749,000, down from GBP934,000. Its recent acquisition MakaluMedia was performing in line with expectations, it said, although its media and broadcast division had been hurt by sales opportunities being delayed into 2014.
The company declared a dividend of 0.4 pence, in line with 2012.
Although the company had a solid start of the year, it cautioned that since the half year end its performance had been mixed with some contracts slipping into 2014 and beyond. As a result the company has undertaken some restructuring to match its current outlook, it said. The company's order book at the end of July was GBP21.5 million, it said, which was within its acceptable range although below last year.
"The group has produced a creditable first half set of results in the face of a market that remains stubbornly challenging," Chairman Mike Love said. "The group remains subject to the vagaries of public-sector procurement and consequently we are not always in control of the timing of commencement of contracted projects which has caused slippage, though the board has taken swift action to mitigate the impact of this and continues to monitor progress carefully."
Shares were trading down 12% at 72.75 pence Thursday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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