4 Sep 2015 07:00
SCISYS PLC
(SSY: AIM)
Update regarding banking position
In the trading update issued on 4 June 2015 SCISYS indicated that, while its balance sheet remained strong and was underpinned by solid freehold property assets, the Group may breach certain of its UK banking covenants at 30 June 2015, when these were tested in mid-August. Since that announcement the Company has been in constructive consultation with its UK banks and is now delighted to be able to announce a successful outcome to this process.
The covenants tested in August relate to a loan from the Group's principal UK bankers to part-fund the acquisition of Xibis Limited in December 2014. The relevant bank has waived the 30 June 2015 breaches and has agreed revised covenant thresholds for the second half of 2015 and 2016, providing the Group with sufficient headroom to support trading in line with the Board's current expectations.
The Group's other UK bank, which provided loan finance for SCISYS' acquisition of the freehold of its Chippenham headquarters in May 2011, has confirmed that, subject to achievement of no less than £0.5m EBITDA in the year to 31 December 2015, it will issue a Letter of Waiver when its covenants are tested on the publication of the Consolidated Group audited accounts for the year then ending. The Board remains comfortable with current market guidance for the year to 31 December 2015 and foresees no issue in meeting the minimum EBITDA threshold stipulated.
Mike Love, Chairman of SCISYS, commented:
"The Board is pleased that its UK banks have confirmed their position and continue to be very supportive of the business."
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 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 organizations. Customers include 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 and Reading and two offices located in Germany. More information is available at www.scisys.co.uk