Pre-close Trading Update

SCISYS PLC

(SSY: AIM)

Pre-close Trading Update

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 and Environment sectors is providing a trading update for the year ended 31 December 2012 prior to entering its close period.

Trading

The Directors are pleased to report that the Company performed in line with expectations in the second half of the year and expect to report adjusted EBITA for the year consistent with market expectations, showing further improvement in net operating margins. Cash inflows have remained strong and underpin the Company's progressive dividend policy. Although its markets remain difficult, the Company anticipates reporting a healthy opening order book and new business pipeline for 2013.

The Government & Defence and Media Broadcast divisions both finished 2012 on a strong footing with a number of key contract wins underpinning their prospects for 2013 and beyond. The Environment division's short term order book remains uncertain, but there are encouraging signs of movement in the prospective business pipeline that should convert to new orders. The Applications Management division has performed in line with expectations. With a strengthening performance from the Space division in 2012, the Board anticipates that all divisions will continue to perform positively and in line with expectations for 2013.

The integration of the MakaluMedia acquisition, completed in October 2012, is going well although it will not have made a material contribution to 2012 Group profits.

The Board continues to maintain a close focus on the Company's cost base and will ensure a judicious balance between capacity and demand for resources. Additional tenants have been secured for leasing office space at market rents from 2013 at the Company headquarters building in Chippenham which will further reduce central overhead costs.

Board

SCISYS announced on 27 December 2012 the appointment of a new non-executive director. David Coghlan's experience in UK corporate affairs will be valuable to the Board. He will chair the audit committee as well as being a member of the remuneration committee.

Outlook

The Board remains cautious but believes that the business is capable of further progress in 2013. Organic revenue growth is likely to remain challenging in the UK public sector. Acquisition opportunities will continue to be monitored by the Board during the year and will be pursued where strategically appropriate.

Commenting, Chairman of SCISYS, Mike Love, said:

"Despite several challenges during the second half I am pleased that our full year results for 2012 are in line with expectations and that the Company has been able to deliver another good performance, yet again demonstrating the underlying resilience of the SCISYS business. Our key focus remains further margin growth."

Results

SCISYS expects to report its preliminary results for the year ended 31 December 2012 on 21 March 2013.

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About SCISYS:

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, and Environment sectors. SCISYS clients are predominantly blue chip and public sector organizations. Customers include Environment Agency, the Ministry of Defence, Astrium, Arqiva, Cable & Wireless Worldwide, the European Space Agency, Eumetsat, the BBC, RNLI, National Trust 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