LONDON (Alliance News) - Software provider Scisys PLC on Thursday said its pretax profit sunk in 2015 due to a problem contract and lower revenue, but said its order book has strengthened.
Scisys, which provides software to media, space, government and defence clients, said pretax profit for the year to the end of December fell to GBP614,000, down from GBP3.0 million in 2014.
The reason for the fall in profit was a problem fixed-price contract in its Enterprise Solutions & Defence division, which forced the group to make provisions to cover additional costs to finish the project. In addition to this, revenue declined to GBP36.1 million from GBP40.3 million, in part due to the adverse translation effect of the weak euro.
But Scisys said the situation improved in the second half of the year, reflected in contracts won with the UK Ministry of Defence and French aerospace group Thales SA.
The company closed the year with its order book at GBP37.2 million, up from GBP30.3 million at the end of 2014.
"During the second half of the year we started seeing a healthy recovery in trading with a number of significant contract wins announced at the end of 2015. We are seeing an encouraging start to 2016 and anticipate a healthy first half," said Mike Love, Scisys's chairman.
Shares in Scisys were up 2.3% to 69.55 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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