|Added to my holdings today.|
|There's an overhang. Can buy in size at the moment. Once that clears we're off to the races imo. Strong fundamentals and newsflow. Good to see investors adding here. Low PSR and PEG. finnCap have 155p target.|
Also bought back in again today. Should never have sold out first time around with the benefit of hindsight.
Surprised there is no movement in the share price today but no matter results next month should make interesting reading.|
SciSys on Mission Control for GMV
SciSys has provided more evidence this morning of healthy SITS activity in the space sector, signing a mission control contract worth up to €1.9m with GMV, a privately-owned technological business group. SciSys will be responsible for the design and implementation of a mission control system to support the EUMETSAT Polar System earth-observation programme, which will provide weather-prediction data for national meteorological services during the 2020’s and 2030’s. The contract starts this year and is expected to be delivered by 2021.
Coming hot on the heels of yesterday’s news that SciSys is to support ESA’s Rover Mission to Mars (see Scisys launches into new space contract), the win demonstrates the value of SciSys’ expertise and experience in earth observation satellite systems. In this area of the market in particular, there is a lot to be said for choosing a supplier with a strong track record and re-use of proven solutions.|
|Bought back in today, I did hold before but grabbed my profits on a spike in November, yet always intended to buy back. The two contract announcements this week provided the catalyst I needed to prompt me into action. Fundamentals look rather zulu like with PEG rating at 0.02 and 0.33 plus PER looks good value at 13 and 10. They were in a net cash position before a large acquisition in November, so it will be interesting to read the statement in the results next month to see how the acquisition is performing and to see how their cash position has changed.
Chart is forming a nice consolidation now which might prove interesting once it can start to breakout.|
|Another contract win. Looks like the business is in good shape.|
Scisys launches into new space contract
It’s great to see Scisys continue its lengthy involvement in supporting some of the most fascinating projects in the space sector. The company has signed a contract for c€3.7m with Thales Alenia Space Italia S.p.A. “to perform activities relevant to the design, coding and verification of the Rover Mission Management Software Instruments Layer (MMS-IL) for the European Space Agency ExoMars RSP (Rover and Surface Platform) 2020 Mission”. The MMS-IL software, which will orchestrate the Rover instruments and deliver observations and analyses back to Earth, is crucial to the mission’s aim to launch and land a European rover on Mars by 2021.
Though some might assume that future BREXIT might impact the UK Government’s commitment to the European Space Agency, that couldn’t be further from the truth. Indeed, at the end of last year, the UK committed the equivalent of around £300m per year for ESA over the next four years. And in January, Business Secretary, Greg Clark, announced that UK space businesses were set to benefit from a £152m fund, using British expertise in satellite technology for international projects monitoring and addressing problems such as flooding, drought and deforestation. When we talk to SITS companies involved in this space, like Scisys and CGI, we sense a real excitement about opportunities in this space|
|"SCISYS PLC ("SCISYS"; AIM SSY), the supplier of bespoke software systems, IT-based solutions and support services to the media, broadcast, space, government, defence and commercial sectors, is pleased to announce that it has signed a contract for circa €3.7m with Thales Alenia Space Italia S.p.A, to perform activities relevant to the design, coding and verification of the Rover Mission Management Software Instruments Layer (MMS-IL) for the ExoMars RSP (Rover and Surface Platform) 2020 Mission.
This contract is expected to be fully completed by 2021 and underpins current market guidance."|
|Not sure, they've done it a few times, sometimes citing employee share schemes and others not.
It could be to dish out to the employees of Annova, but i'm just looking for excuses. It doesn't say they're cancelling them, just holding them in treasury.
One theory is that they expect the value of the shares to rise and are getting in on the act.
Director deals are closed 2 months before results are due, so before 31 Jan in this case, but company buybacks aren't restricted like this.
50k shares is only £55k less 0.5% stamp duty, so they'd need a major boost to the price to cover the loss in the value since it has dropped from 110p recently...|
|Can anyone confirm why the company bought back 50k shares today? Is it part of a larger buyback strategy?|
Scisys maintains orbit with Thales contract extension
UK software services firm Scisys continued its success in winning small but strategic contracts, extending its current deal with Thales Alenia Space France for another two years.
The €5.2m agreement involves updating the software used by the Galileo Ground Mission Segment (GMS) to monitor and communicate with a series of navigation satellites orbiting the earth.
Currently in talks to acquire Germany-based software editorial solutions supplier ANNOVA Systems, Scisys has been buoyed by a series of contract wins for its Enterprise Solutions and Defence (ES&D) and Media & Broadcast (B&M) divisions in the last 12 months (including the MoD, South Africa Broadcasting Corporation and a large UK radio broadcaster).
We expect to see Scisys' FY16 (which ends 30th December) to build on its positive H116 results, a welcome turnaround from FY15 when revenue declined 11% and operating profits fell to £800k from £3.2m the year before.|
|SCISYS WINS CONTRACT TO BUILD THE PAYLOAD OPERATIONS CENTRE FOR THE FRENCH-GERMAN MERLIN CLIMATE MISSION
SCISYS PLC ("SCISYS"; AIM SSY), the supplier of bespoke software systems, IT-based solutions and support services to the media, broadcast, space, government, defence and commercial sectors, is pleased to announce that it has signed a contract with Airbus DS GmbH in respect of the Payload Operations Centre (PLOC) for the MERLIN (Methane Remote Sensing LIDAR Mission) satellite's LIDAR instrument. This contract is part of the French-German MERLIN climate mission.
The contract value is EUR3.3m and covers the period from the end of 2016 until the planned launch of the MERLIN satellite in April 2021.
The contribution by SCISYS to the MERLIN mission includes hardware and software elements, as well as central functions of the Payload Operations Centre. This includes important interfaces to the overall satellite ground segment of this joint satellite mission.
Klaus Heidrich, CEO of SCISYS PLC, commented:
"I am delighted with the continued involvement of SCISYS, through its space division, in the MERLIN programme. SCISYS is recognised as a long-term partner to Airbus and the German Space Agency (DLR), and I am very pleased to strengthen our role as a valuable partner of the German national space programme. This is another great achievement for SCISYS and its space division, and further supports the group's positive outlook."|
|Edison note out:
SCISYS is acquiring Germany-based ANNOVA Systems for an estimated deal value of £15.3m. ANNOVA is a leading supplier of software-based editorial solutions to the media sector. It has a track record of generating strong revenue growth and in 2015 won a landmark contract with the BBC, which underpins financial forecasts for 12 years. ANNOVA complements SCISYS’s dira! product offering for radio broadcasters, extends the group’s capabilities into television and creates cross-selling opportunities. The deal significantly boosts earnings, aided by cheap debt financing costs, and is value enhancing on our assumptions. Consequently, we believe the stock continues to look attractive on c 10x our FY17e earnings.
Forecasts: ANNOVA incorporated
We have added ANNOVA into our existing forecasts from year end. This results in a significant boost to revenue and adjusted operating profit while interest and tax also go up. Revenue rises by 17% in FY17 and FY18, adjusted operating profits go up by 39% and 37%, while EPS rise by 27% in each year. However, the group swings into a significant net debt position: we forecast £7.8m as at 31 December 2016, which rises to £13.5m after including the c £5.6m estimated earnout liabilities, which are on a discounted basis.
Valuation: ANNOVA leverages the opportunity
The stock trades on c 0.87x our FY17e revenue forecast and c 8.2x EBITDA, which is attractive if SCISYS can successfully exploit the M&B division’s strong BBC success story to drive cross-selling opportunities within Europe and extend the product outside Europe. Our DCF model – which is based on our forecasts, a conservative weighted average cost of capital (WACC) of 10% and a 10.7% long-term margin target – values the stock at 142p, or 28% above the current level.|
Scisys ups the Broadcast & Media ante with ANNOVA
It’s taken quite some time but Scisys has found a company that appeals and is acquiring ANNOVA Systems, a German-based supplier of software editorial solutions to large and medium sized broadcasters in Northern European. It is far from an unknown quantity as the two suppliers have a set of common customers.
ANNOVA’s OpenMedia product, which enables story centric workflows for news creation and distribution on any medium, complements the dira! audio playout software Scisys takes to market through its up and coming Media & Broadcast division. The combination will broaden the Scisys portfolio and create stronger positions in Germany and across Europe, while also enabling it to access a larger part of the media and broadcast technology market.
It appears to be a positive move on all fronts because Scisys expects ANNOVA to be “strongly earnings enhancing” from 2017. For the year to December 2015 ANNOVA reported revenue of €7.5m (vs. € 6.3m) with EDIT of €1.1m (vs. €1.4m). Its EBIT of 15% exceeds the Scisys average so it is expected to improve the overall Group margin profile. The sums Scisys is paying – an initial consideration of €11.35m (£9.7m) cash with a three year earn out of up to €16.48m (£14.09m) cash or shares, for a maximum of €27.83m (£23.8m) – seems reasonable.
Media & Broadcast is an up and coming segment within Scisys that has seen rising activity over the past year, including a landmark contract with the South African Broadcasting Corp (SABC), that followed hard on the heels of a contract with a UK radio broadcaster. The contracts were small but strategic, providing next gen broadcasting reference cases to help grow the division which is c20% of the business. One of the benefits of ANNOVA is that it signed a 12-year contract with the BBC in 2015 and this will be a highly valuable reference site.|
|For transparency I did sell my holdings into the rise this morning, thought acquisition news positive as well as recent trading updates, just took advantage of the unexpected strength, but likely to be buying back at some stage.|
|Acquisition. Strongly earnings enhancing from 2017. finnCap ups target price to 155p from 120p!|
Scisys: Emerging stronger
This year is going so much better for Scisys than last year. Its 2015 ‘perfect storm’ (see Management guiding Scisys through perfect storm) now feels like a distant memory. Following a wholly positive results announcement for H1 (see Scisys bounces back in H1), the second half of the year has now gone better than was expected. Adjusted operating profit and revenues for the year to end December are now predicted to be ahead of market guidance. The sterling to euro exchange rate movements have helped but Scisys also points to additional contract wins and improved efficiency in delivering existing projects. It appears the lessons learned last year, when the company had to deal with a problem contract, are being applied and resulting in better project performance in the rest of the business. Great to see Scisys back on form.|
|I've bought a new lot of 32 Red (TTR) - still have some that I have nearly trebled on.
32 Red runs gambling platforms allowing addicted
gamblers to be parted from their money in whichever way they fancy.
So if they prefer to lose
their money playing Poker, or love losing playing Bingo, no problem.
It looks cheap and no reason why it shouldn't head back to highs of 170 plus. It's got a deal
with ITV for "I'm A Celebrity" and Ant and Dec games and there is strong rising revenue
and profits. Looks a good gamble!|
|finnCap up tp by 20% from 100 to 120p|
|Not surprised at the strong update today. Ahead of forecasts. Still very undervalued imo.|
|Lot of room here to progress imo. SSY at a 50% discount against FTSE Sector. Low PEG and PSR.|
|Yes pleased to see SSY joining in now with the overall rally, after what seemed to be a potentially significant contract win.
They did seem rather upbeat when releasing their interim results in September, said that all divisions performing to or exceeding budget, also expect to see positive impact on profitability from weaker pound in second half.|