AGM Statement

12 Jun 2008 07:00



SciSys plc

TRADING STATEMENT 

SciSys plc, AIM stock code: SSY, ('SciSys' or the 'Company') - the specialist supplier of IT services has released the following trading statement today ahead of its AGM. 

At the time of reporting its preliminary results for 2007, the Company indicated that remedial action had been taken to address underperformance in the business, that it was progressing on a more stable footing and that early indicators for 2008 appeared encouraging. 

As SciSys approaches the half-year point, the Directors are able to confirm this and that the problems affecting previous periods have now been substantially overcome. The projects against which the Company made provisions have been brought back under control and arrangements have been made with the clients involved to protect SciSys' position going forward. Management controls have been revised and strengthened in the business and processes improved to minimise the risk of any recurrence.

The underlying business has remained strong with high utilisation, a good order book and a strong flow of repeat business from established clients. The company continues to make good progress on major programmes with a number of key projects having progressed into their customer acceptance phases.  The VCS business acquired in September 2007 continues to contribute strongly to Group earnings. It has recently won a multi-million Euro contract with Deutsche Welle, a leading German broadcaster, to provide an integrated studio system. It is well placed to win further significant contracts for 2008 and 2009. The Group's other divisions have had similar business development success. Thales Alenia Space has awarded the Space division a multi-million Euro contract for the Galileo Network Monitoring Facility project. The Government division is to develop an integrated Penalty Fares and Prosecution Management system for London Underground (part of Transport for London). In addition, SciSys will assist Mid and South Bedfordshire District Councils to harmonise their business processes and systems in readiness for the councils' merger and transition to unitary status. 

The Company is moving back to the levels of consistent and sustainable financial performance that shareholders have historically expected and the Board currently believes that half year results will be consistent with market expectations for the full year. 

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