31 May 2012 07:00
Embargoed until 7am 31 May 2012
SCISYS PLC
TRADING STATEMENT
SCISYS PLC, AIM stock code: 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 Application Support sectorsis pleased to release the following trading statement ahead of its AGM to be held at 12.00 noon today.
SCISYSopened the year with a comfortable order book position of £26.7m and order intake for 2012 to date is in line with expectations. The order book further improved to stand at £28.8m by the end of March, a growth of 8% across the period. This excludes any material benefit from SCISYS' expected participation in the Warrior Armoured Fighting Vehicle upgrade programme later in the year.
While its trading outlook remains positive, the Company recognises that the UK Government's spending squeeze continues to make the outlook for potential UK public sector projects and programmes somewhat uncertain. Nevertheless, with 45% of its business derived from outside the UK and with a broad spread of customers in other markets, SCISYS remains confident that it is sufficiently resilient to withstand any adverse conditions in the UK public sector. Hedging contracts are in place to protect its euro earnings from significant deterioration in the €/£ exchange rate.
SCISYS remains cash generative and, despite having taken on debt to part-fund the £5.0 million purchase of its Chippenham headquarters in May 2011, the Company is now well placed to consider acquisition opportunities. The Directors are pleased to report that the Company granted a 10 year lease on part of its surplus office space in Chippenham in February, which will generate income in line with market rents.
The previously reported slow start to trading in 2012 had been foreseen in the Company's internal budgets, which projected a more vigorous performance in the second half of the year, underpinned by the strong pipeline of prospective new business. However, trading in the first half of the year is proving more buoyant than had been originally budgeted, due to a combination of contract wins, operating efficiencies and deferred costs. Whilst management still forecasts an asymmetrical trading profile, the degree of imbalance between H1 and H2 is now anticipated to be less pronounced than had been expected earlier and the Board is increasingly confident of meeting expectations for the full year.
Given the Company's strong balance sheet, and subject to continued satisfactory trading, it is the Directors' intention to continue with the progressive dividend policy introduced in 2009.
Contacts:
SCISYS PLC | ||
Mike Love David Jones | Chairman Chief Executive Officer | Tel : +44 (0) 1249 466 466 |
Winningtons | Tom Cooper | Tel : +44 (0) 797 1221972 |
Canaccord Genuity | Simon Bridges Cameron Duncan | Tel : +44 (0) 20 7523 8000
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About SCISYS PLC
Employing nearly 430 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 two offices located in Germany. More information is available at www.scisys.co.uk.