SSY.L Regulatory News (SSY)

Embargo until 7am on 20 JANUARY 2012

SCISYS PLC

(SSY: AIM)

Pre-close Trading Update

SciSys plc (AIM : SSY), ('SciSys' or the 'Company') - the supplier of bespoke software systems, IT based solutions and support services to the Media Broadcast, Space, Government & Defence, Environment and Applications Support sectors is providing a trading update for the year ending 31 December 2011 prior to entering its close period.

Trading

The Board is pleased to report that the Company performed in line with expectations in the second half of the year despite the on-going uncertain and difficult market conditions. It expects to report adjusted EBITA for the year consistent with market expectations and to report a further improvement in net operating margins. Significantly, cash inflows have remained healthy and the Company's balance sheet has further strengthened such that borrowings secured to fund the acquisition of the Company's 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.

Order Book

The Board is also pleased to report a comfortable opening order book position for 2012. Investors will be aware from a number of recent announcements that SciSys secured a number of important new business gains during the last quarter of 2011. These include significant defence work alongside Lockheed Martin and a number of substantial contract wins in the Space sector.

The 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; both are also entering 2012 with healthy opening order books. The Board maintains its close scrutiny of the Company's cost base and will continue to ensure a judicious balance between capacity and demand for resources.

Outlook

Overall, SciSys is encouraged at the progress made in the last quarter of 2011 on order intake. This leads the Board to believe that the business is likely to enjoy further growth in sales, profits and net margins in 2012. Foreign currency hedging arrangements are in place to protect the Company from any unexpected rapid appreciation of Sterling against the Euro.

Commenting, Chairman of SciSys, Mike Love, said:

"In a repeat of our experience of 2010, our interim accounts for 2011 reported favourable first half results whilst issuing a note of caution about potential challenges to be overcome during the second half. I am pleased that our full year results for 2011 are in line with expectations and that the Company has been able to deliver a good performance, yet again demonstrating the underlying resilience of the SciSys business. The recently announced Board changes will ensure continuity in the progress that the business is making."

Results

SciSys expects to report its preliminary results for the year ended 31 December 2011 on 22 March 2012.

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About SciSys plc

Employing nearly 450 staff, SciSys is a leading developer of Information and Communications Technology services, e-Business and advanced technology solutions. The Company operates in a broad spectrum of market sectors including Media Broadcast, Space, Government & Defence, Environment and Applications Support sectors. SciSys clients are predominantly blue chip and public sector organizations. Customers include Environment Agency, the Ministry of Defence, Astrium, Arqiva, Cable & Wireless, the European Space Agency, Eumetsat, the BBC, the National Archives and Transport for London. The Company has UK offices in Chippenham, Bristol and Reading and three offices located in Germany. More information is available at www.scisys.co.uk.