SSY.L Regulatory News (SSY)

8 June 2017

EMBARGOED 07.00

SCISYS PLC

(SSY: AIM)

SCISYS PLC ("SCISYS"), the supplier of bespoke software systems, IT-based solutions and support services to the Media & Broadcast, Space, Government, Defence and Commercial sectors, is pleased to release the following trading statement which will be read out at its AGM to be held at 12.00 noon today:

SCISYS can report that it has made a promising start to 2017, with particularly encouraging order intake and cash flow.

Integration into the Group of Munich-based ANNOVA Systems ("ANNOVA"), which was acquired in December 2016, is progressing steadily. The value and timing of the first earn out consideration payment is contingent on ANNOVA's achievement of a key commercial milestone that is scheduled for the third quarter of this year.

Having announced in February that it had won €5.6m of contracts to deliver mission management and control software for two European space programmes, our Space division is confident about further extending its strong footprint in the Galileo satellite navigation programme. In April our Enterprise Solutions & Defence division was successful in securing one of the seven coveted places on the Metropolitan Police Solution Provider Framework, giving the division access to a share of contracts worth an estimated £30m p.a. over a four year term. The Media & Broadcast division has won a new contract for BBC Wales valued at £1.1m over two to three years and signed up its first French customer, RTL, in May for the first phase of a potential three-phase project. ANNOVA has also expanded its customer base since the acquisition announcement, adding a significant new commercial broadcaster in the UK, together with new customers in the Czech Republic, Austria and Canada to its order book.

Cash generation for the year to date has been strong, helped by the receipt of overdue payments from the Ministry of Defence and a tax credit from HMRC that was deferred from 2016. The year-end net debt figure of £10.2m had reduced to £7.8m by the end of April.

Based on the performance to date, a strong order book and an encouraging pipeline of opportunities for new business, the Directors are confident that full year revenues and profits are comfortably on track to meet current guidance. In keeping with the pattern over the past five years which will be further emphasised by ANNOVA's trading pattern, we anticipate that the second half-year financial performance will be substantially stronger than the first half.

Boosted by the sales success, the Group order book at the end of March was 4% ahead of the year end position at £67.1m. Of this figure, £37.8m is deliverable after 2017. Only committed purchase orders contribute to the reported order book - framework contracts are not reflected in the figures.

Investor lunch programme

SCISYS will be holding Investor Lunches for Private Client Investment Managers and Private Investors in London on 18 July and Bristol on 19 July. Those wishing to attend should contact Tom Cooper on tom.cooper@walbrookpr.com or 020 7933 8780 or 0797 122 1972 for further details.

For further information please contact:

About SCISYS:

Employing around 500 staff, SCISYS group is a leading developer of information and communications technology services, e-business, web and mobile applications, editorial newsroom solutions and advanced technology solutions. The Company operates in a broad spectrum of market sectors, including Media & Broadcast, Space, Government and Defence and Commercial sectors. SCISYS clients are predominantly blue-chip and public-sector organisations. Customers include the Environment Agency, the Ministry of Defence, Airbus Defence & Space, Arqiva, Vodafone, the European Space Agency, EUMETSAT, the BBC, RNLI, Interflora and the National Trust. The Company has UK offices in Chippenham, Bristol, Leicester and Reading and German offices in Bochum, Darmstadt and Munich. More information is available at www.scisys.co.uk.

This announcement has been released by Natasha Laird, Company Secretary, on behalf of the Company.