SCISYS PLC Pre-Close Trading update and Notice of Results (5959C)

TIDMSSY

RNS Number : 5959C

SCISYS PLC

23 January 2018

SCISYS PLC

("SCISYS", the "Group" or the "Company")

Pre-Close Trading update

And Notice of Results

SCISYS PLC (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 a trading update for the year ended 31 December 2017 prior to entering into its close period.

Trading

The Directors expect the Company's trading results will comfortably meet current market guidance, both in respect of revenues and adjusted operating profit.

The Company's overall order book is at record levels and strong across all sectors, bolstered by our EUR18m contract win with OHB System AG to deliver the ground-station control and communications infrastructure for the German national satellite-communications mission, Heinrich Hertz. The Directors are pleased to note that the strong organic growth enjoyed at the end of 2017 is continuing into 2018. The Group's cash flow is particularly healthy, with the net debt position as at 31 December 2017 better than expected, at GBP5.9m.

The Group's integration with ANNOVA is progressing steadily. As we enter our final ring-fencing year with ANNOVA, we see cross selling and synergies between ANNOVA and our Media & Broadcast (M&B) division continue to bear fruit, as evidenced by contract wins with both MDR and RTL, respectively. MDR is a German public broadcaster and has been a customer for M&B since 1994; RTL France has been a long-standing customer with ANNOVA and is a large commercial customer for M&B and their first in France.

We have started a programme to align ANNOVA's internal processes with SCISYS' high standards. ANNOVA completed a key milestone for its long-term supply contract with the BBC, for the supply of its OpenMedia software as announced on 9 August 2017.

The Group has in place intra-group currency-hedging arrangements to mitigate the risk of exchange-rate fluctuations and does not anticipate any major impact from exchange-rate movements in 2018. As previously announced, SCISYS continues to explore a range of Brexit contingency plans and options to protect shareholder value.

Commenting, Mike Love, Chairman of the Company, said:

"The positive news flow across the year on new business wins was crowned by the announcement in late October of the the award of the contract to deliver the ground station control and communications infrastructure for Heinrich Hertz directly to OHB System AG, for the first time as prime contractor for the entire ground infrastructure. Further contract wins across the Group in the last quarter of 2017 mean that we are entering 2018 with positive momentum across all divisions."

Notice of Results

SCISYS expects to report its preliminary results for the year ended 31 December 2017 on 27 March 2018.

Investor Lunch Programme

SCISYS will be holding investor lunches in London and Bristol for Private Client Investment Managers and Private Investors. Those wishing to attend should contact Tom Cooper on [e-mail], 020 7933 8780 or 0797 122 1972 for further details.

For further information please contact:

 
                                             [phone] 
 SCISYS PLC                                   466 
------------------------------------------  -------------------------- 
     Mike Love          Chairman 
---------------------  -------------------  -------------------------- 
     Klaus Heidrich     Chief Executive 
                         Officer 
---------------------  -------------------  -------------------------- 
     Chris Cheetham     Finance Director 
---------------------  -------------------  -------------------------- 
 finnCap (NOMAD 
  & Broker)                                  [phone] 
------------------------------------------  -------------------------- 
     Julian Blunt       Corporate Finance 
---------------------  -------------------  -------------------------- 
 Walbrook PR                                 [phone] 
------------------------------------------  -------------------------- 
     Tom Cooper/Paul 
      Vann                                   [phone] 
------------------------------------------  -------------------------- 
                                             [e-mail] 
 -----------------------------------------  -------------------------- 
 

About SCISYS:

Employing around 500 staff, SCISYS group is a leading developer of Information and Communications Technology services, e-Business, web and mobile applications, editorial newsroom and advanced technology solutions. The Company operates in a broad spectrum of market sectors including Media & Broadcast, Space, Government and Defence and Commercial sectors. SCISYS clients are predominantly blue chip and public sector organisations. Customers include the Environment Agency, the Ministry of Defence, Airbus Defence & Space, Arqiva, Vodafone, the European Space Agency, Eumetsat, the BBC, RNLI, Interflora and the National Trust. The Company has UK offices in Chippenham, Bristol, Leicester and Reading and German offices located in Bochum, Dortmund, Darmstadt and Munich. More information is available at www.scisys.co.uk.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 23, 2018 02:00 ET (07:00 GMT)