20th Sep 2018 11:19
LONDON (Alliance News) - Software firm SCISYS PLC hiked its interim dividend Thursday after it swung to a profit amid revenue growth and a fall in one-off costs associated with a recent acquisition.
For the six months ended June, the software firm swung to a GBP975,000 pretax profit from a GBP1.7 million loss the year prior. This was after revenue rose 13% to GBP28.7 million from GBP25.3 million the year before.
Profit performance was helped by a sharp fall in exceptional costs during the period. One-off charges dropped to GBP666,000 from GBP1.6 million the year prior. This was after a sharp fall in the contingent consideration associated with its three-year earn-out agreement connected to its EUR27.8 million acquisition of ANNOVA Systems GmbH in late 2016.
"We are delighted by our continued solid operational performance and key contract renewals," SCISYS Chairman Mike Love said. "In particular, our Space division's contract win with Airbus for developing the global navigational EGNOS V3 ground segment is encouraging evidence of our ability to continue participation in EU-funded programmes."
SCISYS proposed a 0.65 pence per share interim dividend, up 10% from 0.59p per share the year prior.
"Cash flow is healthy and our balance sheet increasingly strong," Love added. "We expect our financial results to be more evenly spread over the year. The board also expects, based on current performance, to deliver further year-on-year growth for 2018."
Shares in SCISYS were 0.8% lower at 185.00 pence on Thursday.