Interim results for the six months ended 30 June 2017
SCISYS PLC ("SCISYS"), the supplier of bespoke software systems, IT-based solutions and support services to the space, media & broadcast, government, defence and commercial sectors is pleased to announce its interim results for the half year to 30 June 2017. The Directors anticipate that SCISYS will deliver full-year results at the upper end of current guidance, a view supported by the 30 June 2017 order-book value of £64m and buoyed by recent contract wins.
Financial and Operational Highlights:
· Adjusted operating profit up 18% to £1.3m (2016: £1.1m).
· Revenues up 23% to £27.2m (2016: £22.2m).
· Record half-year order book of £64m (2016: £35m).
· Net debt reduced from £10.2m at 31 December 2016 to £9.0m (30 June 2016: net funds £1.4m).
· Interim dividend up 11% at 0.59 pence per share (2016: 0.53p).
· Post-period end, December 2016 acquisition, ANNOVA, achieved major project milestone on flagship BBC contract, triggering payment of first earn out instalment in September.
· ANNOVA's success exceeded expectations reflected in 2017 opening balance sheet, resulting in exceptional charge of £1.8m for revalued contingent consideration.
· Exceptional charges and amortisation arising on ANNOVA acquisition produced statutory operating loss of £1.3m (2016: £1.1m profit) and basic LPS of 4.9p (2016: EPS 2.8p).
· Adjusted basic earnings per share reduced to 1.4p (2016: 2.8p) due to the impact of tax on exceptional charges.
· ANNOVA secured a succession of key contract wins with existing and new customers, including Canadian broadcaster, Corus TV.
· M&B division gained its first French customer with RTL contract win and South African Broadcasting Corporation project entered large roll-out phase.
· ESD division secured one of seven coveted places on key Metropolitan Police Service framework.
· Space division delivered 26% increase in first half-year contribution.
Mike Love, Chairman of SCISYS, commenting on the results, said:
"We are very pleased and buoyed by a solid operational performance and key contract wins across the Group resulting in our record order book. We are particularly pleased by the robust performance of ANNOVA; it is already evident that this acquired business is delivering significant strategic benefit to the Group. At this point in time we anticipate that we will deliver full-year results at the upper end of current guidance."