24 Sep 2009 07:00
24 September 2009
SciSys plc
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009
SciSys ("SciSys" or "the Group") supplies IT services and bespoke IT systems to meet its clients' operational and business requirements. Its clients are primarily in the Space, Government and Media/Broadcast sectors and are predominantly blue chip companies, government and quasi-government organisations. Customers include the Environment Agency, the Ministry of Defence, Astrium, Arqiva, Cable & Wireless, the European Space Agency, the Metropolitan Police, the BBC, the RNLI, Deutsche Welle and the Coal Authority.
SciSys is listed on the AIM (stock code SSY).
Financial Highlights
Revenue up 5% to £20.3m (June 2008: £19.4m)
Adjusted operating profit doubled to £0.6m (June 2008: £0.3m)
Profit before tax of £0.1m (June 2008: £0.5m loss)
Adjusted basic earnings per share up 31% to 2.1p (June 2008: 1.6p)
Basic earnings per share of 0.5p (June 2008: 0.6p loss)
Group net cash at 30 June 2009 of £1.3m (30 June 2008: £1.0m net debt)
Substantial working capital headroom of £4.3m
Reintroduction of dividend payments with interim dividend declared of 0.3p per share
Operational Highlights
Underlying value of various new contract wins from established and new customers announced year to date in excess of £30m
Media and Broadcasting Division awarded major framework contract with the BBC worth £10ߛ15m between 2009- 2013
Post period end significant new client wins with the RNLI and UK Coal Authority
Mike Love, Chairman of SciSys, commenting on the results, said:
"Our results for the period confirm the progress made in our drive to return the Group to sustained profitable trading. Revenues and profits are in line with expectations. The flow of positive contract wins already announced to the market has given us a solid order book for the second half of 2009 and an excellent opening position for 2010. Our focus remains on the continued improvement in margins and the further strengthening of what is already a healthy order book position for 2010."
For further information please contact:
| SciSys plc | ||
| Mike Love | Executive Chairman | Tel : +44 (0) 1249 466 466 |
| Chris Cheetham | Financial Director | |
| Winningtons | Tom Cooper | T : +44 (0) 797 1221972 |
| Canaccord Adams | Simon Bridges Adria Da Breo Richards | T : +44 (0) 20 7050 6500 |
Executive Chairman's Statement
The headline message in our Annual Report for 2008 was that the turn around in the Group's fortunes was "On Track". In this 2009 Interim Report the Board is pleased to confirm that the Group remains on track, that results for the first six months of 2009 are in line with our expectations and that the trends within the business remain positive.
The Group has returned a profit after tax, finance costs, exceptional charges, all share based payments and the amortisation of intangible assets. We are able to report a solid net positive movement in the profits attributable to equity holders.
Adjusted operating profits for the period were up by 100% at £0.6m with revenues for the same period up by 5%. Our balance sheet remains strong with cash deposits exceeding borrowings by £1.3m as at the 30 June 2009.
Along with high levels of repeat business won from our established client base during the period, including major contract wins from the BBC and Environment Agency, there have also been post period end significant new client major contract awards with the RNLI and UK Coal Authority. The underlying value of the various new contract wins from established and new customers announced year to date is in excess of £30m. These contracts will help underpin our growth in 2010 and beyond.
For the RNLI, SciSys has been contracted to supply all of the software, hardware, installation and support services for its new fleet of lifeboats. The system will allow the crew of five to monitor and control all of the boats' functions from their seated crew stations and is based upon the Electronics Architecture product SciSys has been developing for the military for some years. The initial order, which is well in excess of £1m, is for the development and installation of the software architecture in the first five boats, although the RNLI may commission the software for additional boats over the next few years.
The initial value of the contract won with the Coal Authority for the analysis, design, development and implementation phases of a new geographic information system to replace the Authority's current Mining Reports and Surface Damage System, will be circa £5m. These phases are expected to collectively last two years and will be followed by several years of Service Management where SciSys will provide support and maintenance, technology refreshes and ongoing enhancements to the system.
SciSys remains organised around four divisions, each managed as a profit centre with its own executive team responsible for the profit and loss performance of the division.
Our Government Division has delivered the strongest performance across the period. It has made substantial positive progress in the delivery of a number of major projects to key clients including the Environment Agency, Arqiva, the Metropolitan Police and the Ministry of Defence, amongst others. In the corresponding period in 2008, progress was hindered by the need to engage a significant number of external contractors to assist in meeting delivery commitments. For 2009, we have been able to meet our delivery obligations almost entirely from our own permanent resources with corresponding positive impact on net margins. In addition to securing the RNLI and Coal Authority work, in April the Division also reported a major new project award win with the Environment Agency worth £3.5m over three years with options to extend its value over two further years. The work is to deliver the IT system for the Government's Carbon Reduction Commitment (CRC) Project. The CRC is part of the Government's initiative to tackle climate change through the introduction of a new 'cap & trade' system to encourage large distributed energy users in the public and private sectors to reduce energy usage. This is the first such system to be developed to address CRC and there is global interest in the UK's approach to use 'cap & trade' mechanisms.
Results from the Media and Broadcast Division (MBS) have continued to be held back in the first half of 2009 as the MBS Division experienced further delays in procurement decisions across its client base. However, in May it announced a major framework contract win for the provision of Audio Editing & Playout (AEP) solutions on a sole supplier basis to the BBC. It is anticipated that the value of the framework contract from 2009 to 2013 will be in the range of £10ߛ15m. Based on its dira!® product suite, MBS will be working to create one single scaleable joined-up, pan-BBC solution that integrates with other systems to deliver to the BBC a true multimedia production environment. It is intended that the AEP systems will be installed across all of the BBC's sites, both within the UK and around the rest of the world. Although this contract win underpins the forward order book for MBS for the next three years, the Division will derive most of the value from this contract in 2010 and beyond. This win is strategically important as the delivery of the AEP programme will further strengthen MBS' position as a leading provider in the media broadcast business.
The Space Division, which was reorganised during 2008 to maximise the synergies between the SpaceCom business of VCS and the SciSys UK and SciSys German space businesses, is now operating as a single international division. At the operating level, underlying margins within the Division are under some pressure following delays in the completion of some projects within the UK. This issue is attracting substantial commercial focus from senior management. Overall most major programmes are continuing on schedule and have seen a number of substantial deliveries achieved during the period.
The Division has made significant progress in positioning itself to participate in future technology programmes. The more significant announcements in the period include its participation in an on-board security technology study and a contract for the development of a new area of expertise in navigation applications and services. A consortium led by the Space Division will build the basic infrastructure and test bed for the "navitestNRW" Service Infrastructure project. The project will create an infrastructure which will allow potential developers of future navigation-based application services an opportunity to test their ideas and equipment in a highly realistic environment.
Other successes during the period include the use of the Mission Critical Operational Simulator developed by SciSys for the successful launch of the GOCE mission and the delivery of software into the SWARM and Cryosat 2 Earth Explorer satellites. Data collected from the GOCE satellite will provide a high-resolution map of the geoid and gravitational anomalies and will be used in ocean and climate studies, including sea-level changes, oceanic circulation and ice cap dynamics. The Division anticipates winning further work in this sector in the second half of the year. The SWARM and Cryosat 2 deliveries were completed on time and to budget and the working relationship with the customer has been excellent throughout.
SciSys' Support Division benefits from high levels of repeat business and has delivered another strong first half performance. It is well positioned to maintain the pattern in the second half. It secured a three year extendible contract with Transport for London (TfL) for the provision of application development, support and maintenance services for the software applications which are used in the production and printing of London's 64,000 Stop Specific Timetables, found at over 19,000 bus stops. This contract win further extends SciSys' presence in this key account and builds on the strong relationship it has with a growing number of business areas within TfL.
Going forward into 2010 the Division will see significant benefit from the RNLI, CRC and Coal Authority work. It will also potentially benefit from the AEP roll out activity working with the MBS division in supporting the BBC.
Dividend
The Directors indicated at the AGM in May 2009 that the Board was considering reintroduction of dividend payments at the interim stage, subject to continued further positive progress at the operating level. They can now confirm that an interim dividend of 0.3p per share will be paid on 18 November 2009 to shareholders on the register as at 30 October 2009. The shares are expected to go ex-dividend on 28 October 2009.
Financial Director's Statement
The total revenue for the Group was £20.3m (June 2008: £19.4m). Adjusted operating profit, before amortisation, share based payment charges and non-recurring items was £0.6m (June 2008: £0.3m) and adjusted basic earnings per share was 2.1p (June 2008: 1.6p). The statutory profit from operations was £0.1m (June 2008: loss of £1.0m). The profit before tax for the period was £0.1m (June 2008: loss £0.5m) and the basic earnings per share was 0.5p (June 2008: 0.6p loss).
I am pleased to report a return to profitability at the statutory operating, pre-tax and post-tax levels and a doubling of adjusted operating profit from the first half of 2008. All Divisions have made a contribution to the results for the period. The Government Division exhibited a particular resurgence from 2008, when its contribution was depressed due to the costs of external contractors engaged to ensure that the Division met critical project deadlines.
The amortisation charge shown on the face of the Income Statement relates to intangible assets recognised on the acquisition of VCS under IFRS and will cease at the end of 2009. The share based payment charge reflects the costs of the Group's Executive Share Ownership Plan and Enterprise Management Incentive schemes. Neither charge affected Group cashflow.
At the end of the reporting period, the Group had net cash (comprising cash and cash equivalents less overdrafts) of £2.8m (June 2008: £0.9m). Unutilised working capital facilities totalled £4.3m (June 2008: £1.7m).
UK bank facilities were renegotiated during the period. Overdraft facilities of £0.5m were converted to term debt and capacity for foreign exchange hedging cover was extended. Group debt excluding bank overdrafts at the period end was £1.5m (June 2008: £1.9m).
The resulting liquidity position was net cash of £1.3m (June 2008: £1.0m net debt). Adverse movement in exchange rates from the 2008 year end reduced the sterling value of Euro cash deposits held in Germany although the impact was mitigated by entry into Euro-sterling cylinder option contracts.
SciSys continues to benefit from the tax credit system for expenditure on Research & Development. The effective tax rate for the Group was a credit of 54% of pre-tax profit for the half year (June 2008: credit 66% of loss).
Comparative results for the six months ended 30 June 2008 have been restated to reflect accounting treatment for the disposal of CODA plc shares held in trust consistent with the presentation in the audited results for the year ended 31 December 2008. The half year accounts are presented on a basis consistent with policies to be adopted for the Annual Report and Accounts for the year ended 31 December 2009.
Outlook
We remain mindful of the uncertain market conditions which currently prevail across the software and IT services sector and continue to take a cautious view on our trading outlook. SciSys nevertheless is well positioned to meet expectations for the full year and can draw strength from the positive outlook it already has on 2010.
The Group needs to show further progress towards achieving the levels of financial performance that shareholders have historically expected. Our focus continues to be organic growth, the delivery of existing programmes, on improving net margins and on developing and strengthening our management team.
Consolidated Income Statement
| Unaudited Six months to 30 June 2009 £000 |
Restated Unaudited Six months to 30 June 2008 £000 | Audited Year ended 31 December 2008 £000 | |
| Revenue (note 2) | 20,281 | 19,422 | 38,056 |
| Net operating costs | (20,172) | (20,451) | (39,859) |
| Operating profit/(loss) | 109 | (1,029) | (1,803) |
| "Adjusted operating profit" being operating profit/(loss) before amortisation, share based payments and non-recurring items | 565 | 253 | 857 |
| Amortisation of intangible assets | (428) | (900) | (1,800) |
| Share based payments | (28) | (135) | (161) |
| Non-recurring items (note 3) | - | (247) | (699) |
| Operating profit/(loss) | 109 | (1,029) | (1,803) |
| Finance costs | (56) | (314) | (296) |
| Finance income | 32 | 853 | 935 |
| Profit/(loss) before tax | 85 | (490) | (1,164) |
| Tax credit (note 4) | 46 | 325 | 282 |
| Profit/(loss) for the period | 131 | (165) | (882) |
| All profit/(loss) for the period is attributable to equity holders of the parent | |||
| Earnings/(loss) per share (note 5) | |||
| Basic | 0.5p | (0.6)p | (3.1)p |
| Diluted | 0.4p | (0.6)p | (3.1)p |
Consolidated Statement of Comprehensive Income
| Unaudited Six months to 30 June 2009 £000 |
Unaudited Six months to 30 June 2008 £000 |
Audited Year ended 31 December 2008 £000 | |
| Profit/(loss) for the period | 131 | (165) | (882) |
| Other comprehensive income | |||
| Currency translation differences on foreign currency investments | (830) | 376 | 1,758 |
| Net change in fair value of financial asset | - | 73 | 73 |
| Net change in fair value of financial asset transferred to Income Statement | - | (671) | (671) |
| Other comprehensive income | (830) | (222) | 1,160 |
| Total comprehensive income for the period attributable to equity holders of the parent | (699) | (387) |
278 |
Consolidated Statement of changes in Equity
| For the six months ended 30 June 2009 |
|
|
|
|
|
| |
|
| Share Capital | Merger Reserve | Capital Redemption Reserve | Translation Reserve | Retained Earnings | TOTAL | |
|
| £000 | £000 | £000 | £000 | £000 | £000 | |
|
|
|
|
|
|
|
| |
| Balance as at 1 January 2009 | 7,120 | 943 | 83 | 2,173 | 4,636 | 14,955 | |
|
|
|
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|
|
| |
| Total comprehensive income for the period |
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|
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|
|
| |
| Profit | - | - | - | - | 131 | 131 | |
| Other comprehensive income |
|
|
|
|
|
| |
| Foreign currency translation | - | - | - | (830) | - | (830) | |
|
|
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|
|
|
|
| |
| Total comprehensive income for the period | - | - | - | (830) | 131 | (699) | |
|
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| |
| Transactions with owners, recorded directly in equity |
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| |
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| |
| Contributions by and distributions to owners |
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| |
| Charge for share based payments | - | - | - | - | 28 | 28 | |
| Investment in own shares | - | - | - | - | (4) | (4) | |
|
|
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|
|
|
|
| |
| Total contributions by and distributions to owners | - | - | - | - | 24 | 24 | |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
| Balance as at 30 June 2009 | 7,120 | 943 | 83 | 1,343 | 4,791 | 14,280 | |
| For the six months ended 30 June 2008 |
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|
|
|
|
| |
|
| Share Capital | Merger Reserve | Capital Redemption Reserve | Available for Resale Reserve | Translation Reserve | Retained Earnings | TOTAL |
|
| £000 | £000 | £000 | £000 | £000 | £000 | £000 |
|
|
|
|
|
|
|
|
|
| Balance as at 1 January 2008 | 7,120 | 943 | 83 | 598 | 415 | 5,334 | 14,493 |
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|
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|
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|
|
| Total comprehensive income for the period |
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|
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|
|
| Loss | - | - | - | - | - | (165) | (165) |
| Other comprehensive income |
|
|
|
|
|
|
|
| Foreign currency translation | - | - | - | - | 376 | - | 376 |
| Remeasurement of available for resale asset | - | - | - | 73 | - | - | 73 |
| Sale of investments | - | - | - | (671) | - | - | (671) |
|
|
|
|
|
|
|
|
|
| Total comprehensive income for the period | - | - | - | (598) | 376 | (165) | (387) |
|
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|
|
| Transactions with owners, recorded directly in equity |
|
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|
|
|
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|
|
| Contributions by and distributions to owners |
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|
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|
|
|
|
| Charge for share based payments | - | - | - | - | - | 62 | 62 |
| Share trust loans | - | - | - | - | - | 100 | 100 |
|
|
|
|
|
|
|
|
|
| Total contributions by and distributions to owners | - | - | - | - | - | 162 | 162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as at 30 June 2008 | 7,120 | 943 | 83 | - | 791 | 5,331 | 14,268 |
| For the year ended 31 December 2008 |
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|
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| |
|
| Share Capital | Merger Reserve | Capital Redemption Reserve | Available for Resale Reserve | Translation Reserve | Retained Earnings | TOTAL |
|
| £000 | £000 | £000 | £000 | £000 | £000 | £000 |
|
|
|
|
|
|
|
|
|
| Balance as at 1 January 2008 | 7,120 | 943 | 83 | 598 | 415 | 5,334 | 14,493 |
|
|
|
|
|
|
|
|
|
| Total comprehensive income for the period |
|
|
|
|
|
|
|
| Loss | - | - | - | - | - | (882) | (882) |
| Other comprehensive income |
|
|
|
|
|
|
|
| Foreign currency translation | - | - | - | - | 1,758 | - | 1,758 |
| Remeasurement of available for resale asset | - | - | - | 73 | - | - | 73 |
| Sale of investments | - | - | - | (671) | - | - | (671) |
|
|
|
|
|
|
|
|
|
| Total other comprehensive income | - | - | - | (598) | 1,758 | - | 1,160 |
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|
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|
|
|
| Total comprehensive income for the period | - | - | - | (598) | 1,758 | (882) | 278 |
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|
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|
|
| Transactions with owners, recorded directly in equity |
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|
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|
|
|
|
|
|
|
|
|
| Contributions by and distributions to owners |
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|
|
|
|
|
|
| Charge for share based payments | - | - | - | - | - | 88 | 88 |
| Share trust loans | - | - | - | - | - | 100 | 100 |
| Other | - | - | - | - | - | (4) | (4) |
|
|
|
|
|
|
|
|
|
| Total contributions by and distributions to owners | - | - | - | - | - | 184 | 184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Balance as at 31 December 2008 | 7,120 | 943 | 83 | - | 2,173 | 4,636 | 14,955 |
Consolidated Statement of Financial Position
| Unaudited 30 June 2009 £000 | Unaudited 30 June 2008 £000 |
Audited 31 December 2008 £000 | |
| Non-current assets | |||
| Property, plant and equipment | 3,927 | 3,807 | 4,285 |
| Goodwill | 5,603 | 5,603 | 5,603 |
| Other intangible assets | 542 | 1,841 | 1,004 |
| Deferred tax assets | - | 15 | 70 |
| 10,072 | 11,266 | 10,962 | |
| Current assets | |||
| Inventories | 368 | 439 | 316 |
| Trade and other receivables | 11,812 | 13,615 | 12,341 |
| Income tax receivable | 169 | 276 | 9 |
| Cash and cash equivalents | 3,423 | 3,113 | 4,144 |
| 15,772 | 17,443 | 16,810 | |
| Total assets | 25,844 | 28,709 | 27,772 |
| Equity | |||
| Issued share capital | 7,120 | 7,120 | 7,120 |
| Share premium | 943 | 943 | 943 |
| Retained earnings | 4,791 | 5,331 | 4,636 |
| Translation reserve | 1,343 | 791 | 2,173 |
| Other reserves | 83 | 83 | 83 |
| Equity attributable to equity holders of the parent | 14,280 | 14,268 | 14,955 |
| Current liabilities | |||
| Trade and other payables | 8,572 | 9,275 | 9,207 |
| Bank overdraft and loans | 1,182 | 3,191 | 1,696 |
| Income tax payable | - | 32 | - |
| Deferred income | 335 | 260 | 109 |
| 10,089 | 12,758 | 11,012 | |
| Non-current liabilities | |||
| Bank loans | 922 | 907 | 1,086 |
| Deferred tax | 553 | 776 | 719 |
| 1,475 | 1,683 | 1,805 | |
| Total liabilities | 11,564 | 14,441 | 12,817 |
| Total equity and liabilities | 25,844 | 28,709 | 27,772 |
Consolidated Statement of Cash Flows
| Unaudited Six months to 30 June 2009 £000 | Unaudited Six months to 30 June 2008 £000 | Audited Year ended 31 December 2008 £000 | |
| Cash flow from operating activities | |||
| Profit/(loss) before tax | 85 | (490) | (1,164) |
| Net finance costs/(income) | 24 | (539) | (639) |
| Operating profit/(loss) | 109 | (1,029) | (1,803) |
| Decrease/(increase) in trade receivables | 478 | (1,871) | (473) |
| (Decrease)/increase in trade payables | (428) | 965 | 1,046 |
| Depreciation and amortisation | 761 | 1,270 | 2,482 |
| Profit on sale of property, plant and equipment | 2 | - | - |
| Share based payments | 28 | 135 | 161 |
| Tax paid | (130) | (376) | (431) |
| Net cash flow from operating activities | 820 | (906) | 982 |
| Cash flow from investing activities | |||
| Acquisition of subsidiary | - | - | (301) |
| Disposal of CODA plc shares | - | 638 | 638 |
| Proceeds from disposal of property, plant and equipment | 8 | 50 | 144 |
| Purchase of property, plant and equipment | (353) | (246) | (654) |
| Investment in own shares | (4) | - | - |
| Interest received | 32 | 182 | 264 |
| Net cash flow from investing activities | (317) | 624 | 91 |
| Cash flows from financing activities | |||
| Interest paid | (56) | (314) | (296) |
| Disposal of own shares | - | 100 | 100 |
| New bank loan | 500 | - | - |
| Debt repayments | (26) | (624) | (1,557) |
| Net cash flow from financing activities | 418 | (838) | (1,753) |
| Net increase/(decrease) in cash and cash equivalents | 921 | (1,120) | (680) |
| Cash and cash equivalents at the start of the period | 2,508 | 1,700 | 1,700 |
| Exchange and other movements | (635) | 290 | 1,488 |
| Cash and cash equivalents at the end of the period | 2,794 | 870 | 2,508 |
| Cash and cash equivalent deposits held in non-UK based banks | 3,423 | 3,113 | 4,144 |
| Net bank overdraft with UK based banks | (629) | (2,243) | (1,636) |
| 2,794 | 870 | 2,508 |
Notes to the Unaudited Interim Report
Basis of preparation of Interim Financial Information & Statement of Compliance
SciSys plc (the "Company") is a UK company incorporated in England & Wales. The consolidated half year financial statements of the Company for the six months to 30 June 2009 comprise the Company and its subsidiaries (together referred to as the "Group"). The Group reports its financial results in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.
This interim results announcement is prepared in accordance with the IFRS accounting policies expected to be applied by the Group at 31 December 2009. These policies are unchanged from those set out by the Group in its consolidated financial statements for the year ended 31 December 2008 and available on the Group's website at www.scisys.co.uk. As permitted, this interim report has been prepared in accordance with the AIM rules and not in accordance with IAS 34 'Interim Financial Reporting' and is therefore not fully compliant with IFRS. The following accounting standards have been adopted for the first time in this report: IFRS 8 - Operating Segments and IAS 1 (Revised) - Presentation of Financial Statements (2007). Two further new standards, IAS 23 - Borrowing Costs and IFRS 2 (Revised) - Share Based Payments, had no impact on the financial results nor on their presentation.
The interim financial information for the six months ended 30 June 2009 is unaudited and does not include all of the information required to constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. It should therefore be read in conjunction with the audited financial statements for the year ended 31 December 2008. These published accounts have been reported on by the Group's auditors and have been delivered to the Registrar of Companies. The report of the auditors was (1) unqualified; (2) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (3) did not contain a statement under sections 237(2) or (3) of the Companies Act 1985.
The preparation of these consolidated half year financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these consolidated half year financial statements, the significant judgements made by management in applying the Group's accounting policies and the key areas of estimation were the same as those that applied to the consolidated financial statements for the year ended 31 December 2008.
The Interim Report was approved by the Directors on 16 September 2009.
2. Segmental analysis
The Group operates in one segment, that of providing IT services to large corporations and public sector organisations. Internal management reports analyse results by operating division as set out in the following table. No distinction is drawn between different geographical territories of operation.
| Information about reportable segments | |||||
| External revenues | Space | Govern-ment | Media & Broadcast | Support | Total |
| £000 | £000 | £000 | £000 | £000 | |
| For the six months ended 30 June 2009 | |||||
| External revenue for reportable segments | 7,761 | 7,192 | 3,661 | 1,487 | 20,101 |
| Other external revenue | 180 | ||||
| Consolidated revenue | 20,281 | ||||
| For the six months ended 30 June 2008 | |||||
| External revenue for reportable segments | 8,738 | 5,549 | 3,135 | 1,612 | 19,034 |
| Other external revenue | 388 | ||||
| Consolidated revenue | 19,422 | ||||
| For the year ended 31 December 2008 | |||||
| External revenue for reportable segments | 16,739 | 11,081 | 6,757 | 3,153 | 37,730 |
| Other external revenue | 326 | ||||
| Consolidated revenue | 38,056 |
| Profit/(loss) before tax | Space | Govern-ment | Media & Broadcast | Support | Total |
| £000 | £000 | £000 | £000 | £000 | |
| For the six months ended 30 June 2009 | |||||
| Reportable segment contribution | 1,120 | 1,872 | 550 | 246 | 3,788 |
| Central overheads | (3,679) | ||||
| Finance costs | (56) | ||||
| Finance income | 32 | ||||
| Profit before income tax | 85 | ||||
| For the six months ended 30 June 2008 | |||||
| Reportable segment contribution | 2,061 | 469 | 724 | 476 | 3,730 |
| Central overheads | (4,759) | ||||
| Finance costs | (314) | ||||
| Finance income | 853 | ||||
| Loss before income tax | (490) | ||||
| For the year ended 31 December 2008 | |||||
| Reportable segment contribution | 2,870 | 1,058 | 1,635 | 690 | 6,253 |
| Central overheads | (8,056) | ||||
| Finance costs | (296) | ||||
| Finance income | 935 | ||||
| Loss before income tax | (1,164) | ||||
| Group assets | Space | Govern-ment | Media & Broadcast | Support | Total |
| £000 | £000 | £000 | £000 | £000 | |
| As at 30 June 2009 | |||||
| Reportable segment - non-current assets | 2,223 | - | 3,380 | - | 5,603 |
| Reportable segment - current assets | 5,276 | 3,317 | 987 | 503 | 10,083 |
| 7,499 | 3,317 | 4,367 | 503 | 15,686 | |
| Other - non-current assets | 4,469 | ||||
| Other - current assets | 5,689 | ||||
| Total assets | 25,844 | ||||
| As at 30 June 2008 | |||||
| Reportable segment - non-current assets | 2,223 | - | 3,380 | - | 5,603 |
| Reportable segment - current assets | 5,217 | 4,665 | 1,923 | 540 | 12,345 |
| 7,440 | 4,665 | 5,303 | 540 | 17,948 | |
| Other - non-current assets | 5,663 | ||||
| Other - current assets | 5,098 | ||||
| Total assets | 28,709 | ||||
| As at 31 December 2008 | |||||
| Reportable segment - non-current assets | 2,223 | - | 3,380 | - | 5,603 |
| Reportable segment - current assets | 4,878 | 3,911 | 2,110 | 744 | 11,643 |
| 7,101 | 3,911 | 5,490 | 744 | 17,246 | |
| Other - non-current assets | 5,359 | ||||
| Other - current assets | 5,167 | ||||
| Total assets | 27,772 |
| Group liabilities | Space | Govern-ment | Media & Broadcast | Support | Total |
| £000 | £000 | £000 | £000 | £000 | |
| As at 30 June 2009 | |||||
| Reportable segment - current liabilities | 1,631 | 433 | 487 | 684 | 3,235 |
| Other - non-current liabilities | 1,475 | ||||
| Other - current liabilities | 6,854 | ||||
| Total liabilities | 11,564 | ||||
| As at 30 June 2008 | |||||
| Reportable segment - current liabilities | 1,137 | 285 | 1,047 | 470 | 2,939 |
| Other - non-current liabilities | 1,683 | ||||
| Other - current liabilities | 9,819 | ||||
| Total liabilities | 14,441 | ||||
| As at 31 December 2008 | |||||
| Reportable segment - current liabilities | 907 | 272 | 1,289 | 629 | 3,097 |
| Other - non-current liabilities | 1,805 | ||||
| Other - current liabilities | 7,915 | ||||
| Total liabilities | 12,817 | ||||
3. Non-recurring items
| Unaudited Six months to 30 June 2009 £000 | Unaudited Six months to 30 June 2008 £000 | Audited Year ended 31 December 2008 £000 | |
| Restructuring costs | - | 247 | 699 |
Restructuring costs comprise severance payments to employees who left the Group on grounds of redundancy under a programme commenced in September 2007 to align operating costs with projected revenues, together with directly attributable professional advisors fees and external consultancy costs for short term strengthening of the management team
4. Taxation
| Unaudited Six months to 30 June 2009 £000 | Unaudited Six months to 30 June 2008 £000 | Audited Year ended 31 December 2008 £000 | |
| Current tax (credit)/charge | (10) | (135) | 100 |
| Deferred tax credit | (36) | (190) | (382) |
| Total | (46) | (325) | (282) |
The credit for taxation for the six months ended 30 June 2009 reflects the anticipated effective rate for the period.
5. Earnings per share
The calculation of the Group basic and diluted earnings per ordinary share is based on the following data:
| Unaudited Six months to 30 June 2009 £000 | Unaudited Six months to 30 June 2008 £000 | Audited Year ended 31 December 2008 £000 | |
| Profit/(loss) attributable to shareholders | 131 | (165) | (882) |
| Number of shares | '000 | '000 | '000 |
| Basic weighted average number of shares | 28,394 | 27,837 | 28,124 |
| Diluted weighted average number of shares | 29,719 | 28,848 | 29,460 |
The weighted average number of shares for the calculation of basic earnings per share excludes own shares held in treasury and in the SciSys No1 Employee Share Trust which have been awarded under the Executive Share Ownership Plan.
The weighted average number of shares for the calculation of diluted earnings per share includes own shares held in treasury and in the SciSys No1 Employee Share Trust which have been awarded under the Executive Share Ownership Plan and outstanding options during the period granted under the Enterprise Management Incentive Scheme and Company Share Option Plan. To the extent to which these result in a lower loss per share, they are excluded from the calculation of diluted earnings per share. 6. Adjusted earnings per share
| Unaudited Six months to 30 June 2009 £000 | Unaudited Six months to 30 June 2008 £000 | Audited Year ended 31 December 2008 £000 | |
| Basic | 2.1p | 1.6p | 3.9p |
| Diluted | 2.0p | 1.5p | 3.8p |
In order to present a measure of earnings per share which is more representative of the Group's underlying operating performance, earnings are adjusted to be net of the costs shown in the highlighted box on the face of the Income Statement and of the finance income deriving from realisation of the available for sale reserve.
The calculation of the Group adjusted basic and diluted earnings per ordinary share is based on the number of shares in Note 5 and the following earnings data:
| Unaudited Six months to 30 June 2009 £000 | Unaudited Six months to 30 June 2008 £000 | Audited Year ended 31 December 2008 £000 | |
| Profit/(loss) attributable to shareholders | 131 | (165) | (882) |
| Adjusted for: | |||
| Amortisation of intangible assets | 428 | 900 | 1,800 |
| Share based payments | 28 | 135 | 161 |
| Non-recurring items (note 3) | - | 247 | 699 |
| Realisation of available for resale reserve | - | (671) | (671) |
| Adjusted earnings | 587 | 446 | 1,107 |
The weighted average number of shares for the calculation of basic adjusted earnings per share excludes own shares held in treasury and in the SciSys No1 Employee Share Trust which have been awarded under the Executive Share Ownership Plan.
The weighted average number of shares for the calculation of diluted adjusted earnings per share includes own shares held in treasury and in the SciSys No1 Employee Share Trust which have been awarded under the Executive Share Ownership Plan and outstanding options during the period granted under the Enterprise Management Incentive Scheme and Company Share Option Plan. To the extent to which these result in a lower loss per share, they are excluded from the calculation of diluted adjusted earnings per share.
7. Dividends
No dividends were paid in respect of 2008. The Board is recommending payment of an interim dividend for 2009 of 0.3p per share.
Interim Report
The Interim Report will be posted to shareholders shortly and copies will be available from SciSys plc's Registered Office at Methuen Park, Chippenham, Wiltshire, SN14 0GB. It will also be available on the SciSys website at www.scisys.co.uk.