Scisys Share Discussion Threads

[mctmct] 04/9/2015 11:01

Good news about the banking covenants today, and a "trading in line" update. That means that the reviews of other FP contracts haven't uncovered any further major concerns.

We should climb back to 80p from here.

[paulturner006] 02/7/2015 18:02

What happened to sp?More buys yet price dropped?

[paulturner006] 26/6/2015 19:46

I know I have noticed a lack of stock. Curious. Any thoughts why? Thought it was a little oversold despite the bad news. Hopefully on way back. Would have thought prior to results above £1 - hopefully lessons have been learned and the company will continue to, mainly, thrive.

[mctmct] 24/6/2015 14:56

A 300,000 purchase reported today.

[mctmct] 24/6/2015 11:50

Barclays managed to get me another 10k at 60p - which moved the offer to 62p! There seems to be little stock arount - yet thousands changed hands yesterday ...

[mctmct] 24/6/2015 11:14

Can anyone here post the L2 orderbook details? The MMs don't seem to be making a market :-(

[bally101] 23/6/2015 23:26

Hoping for a rise back up !

[paulturner006] 23/6/2015 20:51

Due a rerate?

[mctmct] 23/6/2015 16:00

ADFN shows a lot of SSY shares changing hands today.

[smithie6] 04/6/2015 17:16

...fixed price contracts including design/ development...

Never cost what you predict...you dont know what problems will occur till do the project.

[bigwig] 04/6/2015 12:34

They will have undoubtedly learned a lot about the perils of fixed price contracts!I feel sorry for the management team, it reads to me that they are acutely embarrassed by this and see it as a one off but they clearly had to announce something to the market, which as ever has reacted badly, particularly when the company has such a low market cap and shares are not that frequently traded. I had a look at who the major shareholders are this morning and am I correct that Microgen still have a stake of 3.3%? They took a look at them back in 2008.
I feel this company seems overall pretty solid. They need to give some more assurance though - mentioning banking covenants is a red rag to a bull!
The price seems to have stabilised for now.

[prita] 04/6/2015 11:12

If they would have quantified the contract issue, even as a worse case scenario, investors or potential investors can judge how much the company is worth to them. But now it's pure guess work so we're left to come to our own conclusions which inevitably will be quite negative.

[adamb1978] 04/6/2015 11:10

So £1.9m PAT would be about 6.5p EPS and therefore this is on a PE of about 9x if that figure is right

I was considering selling however will hold. Reasons being:

- management's track record of growing the business over the long term
- FX problems will eventually abate
- the issue in the warning is about one contract, albeit one major contract, rather than something more fundamental
- whlst they might breach their covenants, they say the bank is supportive and their net debt is about zero
- yield is around 3% and wouldnt appear to be at threat

[rivaldo] 04/6/2015 08:57

Not a holder, but FYI WH Ireland have heavily reduced their PBT forecast to just £0.3m this year.

Interestingly they've also slashed next year's PBT forecast to £2.4m, so I suppose about £1.9m PAT.

[rmillaree] 04/6/2015 08:41

Are they not able to give some quantification as to how big the issue may be - Eg. no more than £1.5 mill per year this year and next.

Should we fair to them if they can't plan for eventualities like this with real important issues like banking covenants - a Supportive bank might adjust the covenants - by saying the bank is Supportive at this time is absolute meaningless twaddle as the haven't breached anything yet and the future breach will be at a different time when the bank will likely screw them into the ground given a chance.

Having said that if the bank remains supportive over the next 12 months (shame they didn't say they hoped that would likely be the case) and the problems are restricted to one chunky non recurring item less than 2-3 mil then this may look likely a great buying opportunity - welcome to the market at work - Faith in management at 8.10 am today = Nil. (isn't the market like a bunch of football Fans?)

Note i do fully understand that in their line of business failure is not an option so in some respects the circumstances here could be of the unknown unknown nature that can strike any business the main thing is they don't annoy their end customer too much - the trick is having Spot on hand to plan for that eventuality. (Is spot available for hire? - If not the Hartlepool Monkey Mascot turned Mayor may be)

[bigwig] 04/6/2015 08:33

just joining this thread - I agree it is overdone, trying to buy but can't, maybe it needs to settle down as you say. Starting to pick up a bit.

[supreme mo] 04/6/2015 08:33

A very honest statement - reassuring to see they havent tried to tart it up like many companies do. It seems on face of it to be overdone looking at price action... sometimes in businesses these one off hits do occur. Looking at past record of mgment i would stick with them..

[theprovosts] 04/6/2015 08:30

Drop it 50% but dont let anyone buy. pfft.

[balbains324] 04/6/2015 08:27

Definately overdone. I'm going to get in and tuck into the ISA as soon as the price settles

[adamb1978] 04/6/2015 08:25

My reason about management's ability above is shown by PBT record since 2009 which goes:
1.6
2.0
2.2
2.4
3.0
3.2

Thats a pretty decent record of delivering profits. One issue which I've had is turnover growth is lumpy but "revenues for vanity, profity for sanity" or however the expression goes.

I do wonder whether this falls is overdone as a result of the covenant comments. They have net cash after all

[adamb1978] 04/6/2015 08:21

prita
to be fair to them, they say that this is caused by one major contract so its quite possible that its some since the results in late March. I also think that the management of SSY is pretty decent and have delivered results

[prita] 04/6/2015 08:14

Savage reaction. But deserved? Management reported only 8 weeks ago that everything was inline and now this??!! Investors let down big time. Shameful. Even at these levels, taken off my watchlist becasue managment cannot be trusted.

[adamb1978] 04/6/2015 08:11

Fall to 40p appears a tad drastic. Even if EPS more than halves to 4p, its on a PE of 8x. I guess the banking covenant comment is the killer, even though they say that the banks are supportive

[macarre] 04/6/2015 07:56

Yes, I was monitoring too; not a holder. Will have to come back some time from now.