Cash rolling in at SciSys

Buoyed by strong order intake in the final quarter of 2011, software solutions provider SciSys reckons it is likely to enjoy further growth in sales, profits and net margins in 2012.The group said it performed in line with expectations in the second half of last year, despite the board having some misgivings about market conditions at the interim stage, and full-year adjusted earnings before interest, tax and amortisation should be more or less what the market is expecting.Net operating margins improved during the year and cash inflows remained healthy. The company's balance sheet has further strengthened such that borrowings secured to fund the acquisition of its head office freehold premises during the year for £5.0m were balanced by cash deposits at the year end. Earnings are likely to continue to benefit from an overall low effective corporation tax rate and the board anticipates that it will maintain its progressive dividend policy. The group's Space and Government & Defence divisions finished 2011 on a strong footing with a number of key contract wins underpinning their prospects for 2012 and beyond. The Environment division's short term order book remains less certain, although its prospective new business pipeline, as illustrated by the recent award of contracts by the UK Met Office, enables the board to feel optimistic that the division will achieve its targets for the year. Following good performances from the Applications Support and Media Broadcast divisions in 2011, the board anticipates that these divisions will continue to perform positively and in line with expectations for 2012.