Scisys Share Discussion Threads

[cfro] 22/9/2016 08:12

Very pleased with those results! :-)

[cfro] 21/9/2016 10:55

Hopefully that is the bottom of the move now printed.

Results tomorrow.

[aishah] 21/9/2016 10:18

Nice delayed trade for 17k shares at 85p. Looks good here imo.

[aishah] 05/9/2016 15:50

Techmarketview:

The good news for Scisys keeps rolling in this year (see Scisys – strong start to 2016 continues). Its Enterprise Solutions & Defence (ES&D) division was at the centre of an ‘annus horribilis’ for Scisys last year, when it suffered due to a problem contract (see Scisys back on form in 2016). But today, Scisys announces a new contract to add to the proof that the division is moving on and building business in new areas.

Scisys has won a contract with the Ministry of Defence (MoD)’s Defence Science & Technology Laboratory (Dstl) to deliver further research and development services. The contract, which was awarded through the MoD's Framework Agreement for Technical Support Design & Engineering, comprises an initial one-year phase of work valued at £1.2 million, with the potential for this to grow to £3 million as subsequent phases begin during the next two years. Scisys highlights that this is another win in maritime defence – an area that has become a focus recently. The company will create and demonstrate a new decision support system for the Royal Navy, enabling it to tackle increasingly complex air threats.

Of course, following issues delivering a fixed price contract last year, Scisys is keen to highlight that it already has a strong reputation for delivery of “innovate R&D” with Dstl. Now it has another opportunity to solidify that reputation.

[cfro] 05/9/2016 11:44

Opened a new position in here this morning.

[interceptor2] 05/9/2016 08:04

The drop on Friday was surprising with the low volume of transactions. Nice MOD contract announced today will strengthen sentiment, and then we have interims to look forward to later this month.

Agree with others here about the impressive cash generation which reversed a £1.0m Net position at the star of the year, to a reported Net cash position of £1.4m last month.

[mctmct] 02/9/2016 17:47

Surprising drop on low volume?

[aishah] 23/8/2016 08:39

SCISYS says it has maintained the encouraging start to the year, as reported at the AGM in June. Strong cash generation has continued, with net cash rising from £0.3m at end-April to £1.4m at end-June. Around half of group revenues are in euros, and if the euro-sterling exchange rate remains around current levels throughout FY16, SCISYS has indicated that current FY16 consensus forecasts will be significantly exceeded even after allowing for hedging impacts. We will review our forecasts following the interims in September, when we will have more information. Given the scope for upgrades, in combination with a strong balance sheet, we believe the stock looks attractive on c 12x our FY17e earnings.

[aishah] 17/8/2016 10:27

Techmarket View:
SciSys' strong start to 2016 continues

SciSys has built on its encouraging start to the year (see SciSys back on form in 2016) and does not expect any adverse consequences as a result of the UK’s EU referendum outcome in June, quite the opposite in fact.

The group conducts about half its business in euros, supplying bespoke software systems, IT-based solutions, web & mobile application development and support services to the Space, Defence, Media & Broadcast, Government & Commercial sectors. It’s therefore set to benefit from a weaker pound. According to the management team, if the euro-sterling exchange rate stays at broadly the same as its current level for the remainder of 2016, full year expectations will be “significantly exceeded” even after allowing for costs of c£0.5m incurred for currency hedging in the first half.

Importantly, trading has also remained strong resulting in buoyant cash flows in H1 and enabling SciSys to move from a £1m net debt position at the start of the year, to £1.4m net cash at the end of June. We’re pleased to see the order book is also well up on a year ago, underpinned by a sizeable pipeline of prospective new business opportunities. This bodes well for the remainder of 2016, particularly as SciSys’ full year trading performance is traditionally biased towards the second half. We’ll bring you more detail when first half results are published in September.

[aishah] 16/8/2016 10:57

finnCap has revised tp to 100p

[aishah] 16/8/2016 08:57

And here it is:
"The Board does not expect any adverse consequences as a result of June's EU referendum outcome. Indeed, if the euro-sterling exchange rate stays in a broad range around its current level for the remainder of 2016, the Board envisages that its current full year expectations will be significantly exceeded even after allowing for costs of approximately GBP0.5m incurred in the first half-year in respect of currency hedging."

Terrific cash flows too converting a net debt position into £1.4m net cash!

Would not be surprised if the likes of SCSW and Techinvest now cover SSY. MKt cap only £26m. dyor

[aishah] 12/8/2016 13:21

Directors saw value back in May when they purchsed shares at 70p. Sterling weakness will certainly be a big kicker imo.

[aishah] 10/8/2016 16:11

Moving up very nicely of late. Downing LLP crossed 10% end of July

[varies] 31/7/2016 11:26

Re-reading the report for 2015 I see that c50% of sales are to the Eurozone and that the strength of the £ against the Euro reduced SSY's profits.
This year the fall in the £ should be of substantial benefit to our profits but uncertainties about our future trading terms with the EU affect SSY more than most other companies that I have invested in.
It would obviously be sensible for both sides to continue trading much as before but I fear that discord amongst the politicians may intervene. HMG's decision to postpone its decision on Hinkley Point will make poor relations with the French government worse and they have great influence within the EU.

[aishah] 09/6/2016 15:15

SciSys back on form in 2016

SciSys is keen to show the market that its ‘blip’ is behind it. UKHotViews readers will remember that the company had an ‘annus horribilis’ in 2015 due to problems with one major fixed price development project in its Enterprise Solutions & Defence (ESD) division. Now, it seems like everything is back on track; today’s trading statement highlights an “encouraging start to 2016” in line with a similar statement back in March (see SciSys back on track after challenging FY15).

As well as existing contracts going to plan, order intake has been strong, particularly across the Space and Media & Broadcast divisions (see SciSys on the international broadcast & media circuit). Across those two sectors, contracts have been secured this year totalling £6.7m, of which £4.1m is expected to be recognised in 2016. The result is an order book, at £35.5m, which is 21% ahead of a year ago and only 5% off the order book high in December last year. Though no firm statement has been made on profitability, the Group does state it has made “excellent progress in returning to previous levels of profitability”. And importantly, the cash position improved from a net debt of £1.0m at the start of the year, to £0.3m at the end of April. SciSys followers will know that trading and cashflow is usually stronger in the second half of the year, so this bodes well.

This is all good news for SciSys. But we certainly don’t think the company is resting on its laurels. The management team continues to look for ways to grow the business both organically and via acquisition. We are particularly keen to see how it manages to transfer its technology expertise – in areas like autonomy, robotics and Earth observation – across sectors. SciSys is an Aladdin’s cave of specialist capability and maximising the potential of those treasures, as client’s embark on more complex digital transformation, could help boost growth further.

hxxp://www.techmarketview.com/ukhotviews/archive/2016/06/09/scisys-back-on-form-in-2016

[balancer] 09/6/2016 08:40

Another good announcement. I am surprised it is taking the share price so long to recover. Maybe a good half year report and increased interim dividend will get it back to 90p and to 100 by this time next year.

[aishah] 09/6/2016 08:08

That's a confident statement. Might add more.

[aishah] 10/5/2016 10:12

Added today - Been on my watchlist for a while. Nice contract win on 29th April. Directors buying yesterday - Chairman bought £29k worth. 2016 fcst pe/ of around 11 and peg of 0.03. dyor

[haroldthegreat] 24/4/2016 14:11

Very quiet on here

[welshwizarduk] 18/12/2015 07:48

Another good contract win this week. This stock will rise steadily now

[mctmct] 24/9/2015 11:19

Georgina O'Toole on TechMarketView says:

"Scisys faced a ‘perfect storm’ in H115 (to end June 2015), resulting in, in the words of Chairman, Mike Love, “very disappointing results”. At the headline level, revenues declined by 22% from £21.1m to £16.5m. Taking out the impact of the Xibis acquisition (see Scisys enters retail tech with Xibis), which contributed £0.4m over the period, the organic decline was 24%. The EBITDA loss was £1.1m, versus a £1.4m profit in H114.

The main issues facing Scisys have been previously reported (see Scisys contract trigger profit warning). The issues with a fixed price “problem contract” in the Enterprise Solutions & Defence (ESD) division meant that revenues were £1.1m down. Moreover, Scisys estimates that lost opportunities as a result of resources being diverted to sort out the contract equated to £0.3m. Adding to those issues, the company continued to suffer from the relative strength of the sterling over the weaker euro; this resulted in a negative impact on revenues of £1.6m.

Taking out the impact of these issues (which drove revenues down by a total of £3m), the revenue decline would have been a still significant, though not as dramatic, 7.6% (or 9.5% organic). The reason? As if all the above wasn’t enough, Scisys was also affected by deferred contracts across all areas of the business (ESD, Space, and Media & Broadcast). Speaking to management this morning, several of those deferred contracts have now been signed (with the BBC, with Lockheed Martin/UK MoD, and with European Space Agency/Galileo), allowing a more positive outlook for H2. Apparently the order book is also significantly higher at the end of June (compared to the end of December) and the number of prospects with good weightings also gives cause for optimism. The management team appears equally confident across all the divisions, though the euro weakness will continue to impact the Space and M&B divisions. On the problematic ESD contract, Scisys has made “constructive progress”. As a result, market guidance for the full year is for slightly reduced revenues of £35.9m and an EBITDA of £1.3m. To be able to pull things back in H2 must be testament to the underlying strength of the business."

[mctmct] 24/9/2015 09:22

Yes - if you are having a poor half year, then it would be silly not to include everything you can. That way, the second half can look like an even stronger recovery. I'm pleased that they reconfirmed "revised market expectations" for the full year. Good order flow too, so no reputational damage, it seems.

I'm long, and holding.

[adamb1978] 24/9/2015 07:50

Interims out this morning. From the initial read, the topline is really ugly as expected given the announcements / profits warning earlier this year. Silver lining is that cost base is very firmly under control and, if they meet market forecasts for revenues of £38m for the year as they seem to expect to, then furthr downside to the share rpice should be limited or temporary

[welsheagle] 06/9/2015 19:18

Thanks for the info, mctmct