LONDON (Alliance News) - Software company Scisys PLC raised its total dividend Wednesday despite seeing pretax profit decline, as higher revenue was offset by restructuring costs in 2013.
The company raised its total dividend for 2013 by 11% to 1.46 pence from 1.32 pence in 2012.
Scisys said its goal is to achieve double digit margins by the end of 2018, underpinned by stronger top line growth.
Pretax profit dropped to GBP1.5 million from GBP2.0 million. Revenue rose to GBP42.6 million from GBP39.1 million but was offset by higher operating costs, a GBP283,000 amortisation of intangible assets, and an exceptional charge of GBP1.2 million in restructuring costs.
The company amalgamated its environment and applications management divisions with its government and defence division to form a new enterprise solutions and defence division.
Scisys said that the new division performed well in the second half. Its space division also performed well, but its media and broadcast division missed expectations due to delays in receiving orders.
The company saw an up-lift in contract conversions in the last quarter of 2014, which it said had continued into the start of the new year. Although Scisys remained cautious in its outlook for 2014, it said its visible short term prospects lead it to expect further progress during the year. Its aim will continue to be driving profit growth, both organically and via acquisitions.
Shares in Scisys were trading up 4.0% at 80.60 pence Wednesday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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