25 Jan 2019 07:00
The information communicated in this announcement includes inside information for the purposes of Article 7 of Regulation 596/2014
SCISYS Group PLC
("SCISYS", the "Group" or the "Company")
Pre-Close Trading Update and Notice of Results
SCISYS Group PLC ("SCISYS" - AIM: SSY; ESM: SCC), the supplier of bespoke software systems, IT-based solutions and support services to the space, media & broadcast, government, defence and commerce sectors, is pleased to announce a trading update for the year ended 31 December 2018, before entering into its close period.
Trading Update:
The Directors expect that the Company's trading results for 2018 will comfortably meet current market guidance in respect of revenues and adjusted operating profit.
The Group's order book remains strong, bolstered by a series of contract wins with an aggregate value of c£23m announced since mid-December. The closing 2018 order book was in the region of £100m (2017: £91.3m). Net cash flow for 2018 was healthy, with the year-end net debt reduced to £3.1m (2017: £5.9m) despite substantial exceptional cash costs for the execution of Brexit contingency plans and payment of a final earnout settlement relating to the December 2016 Annova acquisition.
We continue to see solid organic growth across the Group, notably in our Space and Enterprise Solutions & Defence (ESD) divisions; both saw a significant expansion in the size of their respective teams to meet demand.
Since the re-location of the Group's parent company to Ireland at the end of November, the Directors have been pleased to announce a succession of strategic orders for the Space division, including key contract wins for the EU-funded Galileo satellite navigation programme. ESD's order book was further underpinned by a significant defence sector contract win in December 2018.
Accordingly, the Directors believe that they have mitigated Brexit risks particularly affecting the Group and are on a good footing to navigate Brexit going forward. Intra-Group currency hedging arrangements will continue to mitigate exchange-rate risks.
Our Munich-based subsidiary, Annova, was re-named SCISYS Media Solutions GmbH in December 2018. A formal merger is planned with SCISYS' Media & Broadcast division in 2019, ahead of previously anticipated timescales. This will result in a combined division with main offices in both Dortmund and Munich, led by Michael Schüller, who was previously the CEO at Annova.
Mike Love, Chairman of SCISYS, said:
"We remain optimistic and confident for the Group's prospects going forward, given in particular the strength of its order book and end of year net debt position. SCISYS is well positioned to deal with Brexit and other challenges faced by the business community in 2019."
Notice of Results:
SCISYS expects to report its preliminary results for the year ended 31 December 2018 on 28 March 2019.
Investor Lunch Programme:
SCISYS will be holding investor lunches in London and Bristol for Private Client Investment Managers and Private Investors. Those wishing to attend should contact Tom Cooper on tom.cooper@walbrookpr.com, 020 7933 8780 or 0797 122 1972 for further details.
For further information please contact:
SCISYS Group PLC | +44 (0)1249 466 466 | |
Mike Love | Chairman | |
Klaus Heidrich | Chief Executive Officer | |
Chris Cheetham
| Finance Director | |
finnCap (NOMAD & AIM Broker) | +44 (0)20 7220 0500 | |
Julian Blunt/James Thompson
Andrew Burdis
| Corporate Finance
Corporate Broking | |
Walbrook PR | +44 (0)20 7933 8780 | |
Tom Cooper/Paul Vann | +44 (0)797 122 1972 | |
tom.cooper@walbrookpr.com | ||
Davy (ESM Broker) | +353 1 679 6363 | |
John Frain | john.frain@davy.ie |
About SCISYS Group:
Employing around 650 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, Thales Alenia Space, Arqiva, Vodafone, the European Space Agency, Eumetsat, the BBC, Radio France, RTL, RNLI, Pets at Home, Siemens and the National Trust. The Company's registered office is in Dublin, with UK offices in Chippenham, Bristol, Leicester and Reading and German offices in Bochum, Dortmund, 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.