26th Jan 2010 07:00
Embargo until 7am on 26 JANUARY 2010
SCISYS PLC
(SSY: AIM)
Pre-close Trading Update and Outsource Agreement
SciSys plc (AIM : SSY), ('SciSys' or the 'Company') - the supplier of bespoke software systems, IT based solutions and support services to the Media Broadcast, Space, Government & Defence, Environment and Applications Support sectors is providing a trading update for the year ending 31 December 2009 prior to entering its close period.
Trading
The Board is pleased to report that the business has performed well against difficult market conditionsduring 2009 and as a result it expects to report revenues and EBITA for the year at the top end of market expectations. The Company's balance sheet has further strengthened with net cash of circa £2.4m at the end of 2009. SciSys' earnings per share is likely to continue to benefit from a positive impact of a low effective corporation tax rate.
Outlook
The Company continues to trade well and entered into FY2010 with a strong order book across all business sectors and a continuing healthy pipeline of prospects.
Despite the current strength of trading the Board prefers to take a cautious view on the overall trading outlook for SciSys as it expects the uncertain market conditions in the public sector to continue until the post election spending reviews have been completed.
It anticipates that its Applications Support, Space and Media Broadcast businesses will be relatively unaffected by the reviews and believes that the depth of long term orders in its other businesses will act as a healthy buffer against the anticipated spending pressures.
Outsource Agreement
On the 13th November 2009 Capgemini announced that it had been chosen to provide the outsourcing of IT services for a major public sector organisation under a new seven year IT service contract.
( http://www.uk.capgemini.com/services/news-events/pr2047 )
SciSys has been working closely with Capgemini for the last 18 months after agreeing a 'Tier One Partner' status within the Capgemini consortium and is now proud to announce that its Applications Support Division is part of the winning team.
Chairman Mike Love commented:
""SciSys is excited to be working as part of the winning team on what has been viewed as one of the largest current opportunities in the public sector. We look forward to working closely together and to building a long term working relationship with Capgemini. We already provide applications support services to the end customer with a value of circa £1m per annum. The consortium's success will allow us to sustain and build on those revenues over the next few years."
Results
SciSys will report its preliminary results for the year ended 31 December 2009 on 25 March 2010.
For further information please contact:
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SciSys plc
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Mike Love
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Executive Chairman
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Tel : +44 (0) 1249 466 466
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Winningtons
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Tom Cooper
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Tel : +44 (0) 797 1221972
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Canaccord Adams
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Simon Bridges
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Tel : +44 (0) 20 7050 6500
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About SciSys plc
Employing nearly 450 staff, SciSys is a leading developer of Information and Communications Technology services, e-Business and advanced technology solutions. The Company operates in a broad spectrum of market sectors including Media Broadcast, Space, Government & Defence, Environment and Applications Support sectors. SciSys clients are predominantly blue chip and public sector organizations. Customers include Environment Agency, the Ministry of Defence, Astrium, Arqiva, Cable & Wireless, the European Space Agency, Eumetsat, the BBC, the National Archives and Transport for London. The company has UK offices in Chippenham, Bristol and Reading and three offices located in Germany. More information is available at www.scisys.co.uk.
Related Shares:
SSY.L