AGM Statement

24 May 2007 07:02

SciSys PLC24 May 2007 SciSys plc TRADING STATEMENT SciSys plc (stock code: SSY) - the specialist supplier of IT services hasreleased the following trading statement today ahead of its AGM. At the time of reporting its preliminary results for 2006 in March, the Companyindicated that it was planning for steady organic growth in 2007 but highlightedthat delays to one of the large programmes on which it was working had led toyear end figures slightly below market expectation. As SciSys approaches thehalf-year point, the Directors have concluded that these delays have alsoimpacted the results for the first half of this year. The programme is nowdelivering in line with management expectations. In addition, management has made a provision against an anticipated cost overrunon another large programme. As a result of management action, this programme isforecast to perform in line with our expectations for the second half of theyear. These setbacks are disappointing as the underlying business remains strong withhigh utilisation and strong order book and prospects. In particular, work withthe Environment Agency on the Integrated Regulation programme is acceleratingand the Company has been selected as preferred supplier to Arqiva for asubstantial contract under the national TV Digital Switchover programme. TheBoard therefore expects results for the second half of the year to remain inline with expectations, but cannot yet be confident of recovering the shortfallin profit incurred in the first half of the year. The Board remains committed to investing in growing the Company's IntellectualProperty assets, seeking new customers and identifying potential acquisitions asmeans of improving margins and driving longer term sales growth. Given the Company's strong order book and balance sheet, the depth and qualityof its prospect list, the success of recent deliveries and strength of customerrelationships the Directors look forward to further profitable growth as theCompany progresses its current strategy. For further information please contact: SciSys Plc Mark Hampson, CEO T: +44 (0) 1249 466 466 Chris Cheetham, FD This information is provided by RNS The company news service from the London Stock Exchange