16 Aug 2016 07:00
SCISYS PLC
("SCISYS" or "the Group")
SCISYS trading update
SCISYS, the supplier of bespoke software systems, IT-based solutions, web and mobile application development, and support services to the Space, Defence, Media & Broadcast, Government and Commercial sectors is pleased to provide the following trading update ahead of releasing its interim results on 22 September 2016.
SCISYS can report that it has maintained the encouraging start to the year reported at the AGM on 9 June. This favourable trading picture is reflected in buoyant cash flows for the period. These transformed a £1.0m net debt position at the start of 2016 into £1.4m net cash at 30 June. The Group's order book has remained strong, well ahead of the equivalent position in June 2015, and is underpinned by a sizeable pipeline of prospective new business opportunities.
The Board does not expect any adverse consequences as a result of June's EU referendum outcome. Indeed, if the euro-sterling exchange rate stays in a broad range around its current level for the remainder of 2016, the Board envisages that its current full year expectations will be significantly exceeded even after allowing for costs of approximately £0.5m incurred in the first half-year in respect of currency hedging. As in previous years, the Group's full year trading performance is expected to show a bias towards the second half of the year.
Approximately half of the Group's business is conducted in euros. SCISYS mitigates its exposure to exchange rate movements by entering into hedging contracts to convert forecast surplus euros into sterling at fixed forward rates. Such contracts are revalued quarterly on a mark-to-market basis. Following the Brexit referendum vote the value of the pound fell sharply against the euro. This resulted in an adverse revaluation at 30 June of the Company's 2016 and 2017 hedging contracts and will create a £0.5m charge in the income statement for the first half of the year.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information please contact:
SCISYS PLC | +44 (0)1249 466 466 | |
Mike Love | Chairman | |
Klaus Heidrich | Chief Executive Officer | |
Chris Cheetham | Finance Director | |
finnCap (NOMAD & Broker) | +44 (0)20 7220 0500 | |
Julian Blunt | Corporate Finance | |
Mia Gardner | Corporate Broking | |
WalbrookPR Tom Cooper/Paul Vann | +44 (0) 20 7933 8780 +44 (0)797 122 1972 tom.cooper@walbrookpr.com |
About SCISYS:
Employing nearly 450 staff, SCISYS group is a leading developer of Information and Communications Technology services, e-Business, web and mobile applications 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, AON, Halfords, Interflora and the National Trust. The Company has UK offices in Chippenham, Bristol, Leicester and Reading and two offices located in Germany. More information is available at www.scisys.co.uk
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