SCISYS Group 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 its unaudited Preliminary Results for the 12 months to 31 December 2018.
Financial and Operational Highlights:
- Adjusted operating profit up 16% to £5.1m (2017: £4.4m restated).
- Revenues up 10% to £58.4m (2017: £53.2m restated), of which the component relating to professional fees increased by 16% to £55.7m (2017: £47.9m restated).
- Record order book of £98.6m (2017: £88.2m restated).
- Net debt reduced to £3.1m (2017: £5.9m) despite exceptional cash outflows.
- Final dividend up 10% at 1.73 pence per share (2017: 1.57p) subject to AGM approval.
- Exceptional charges and amortisation arising on the acquisition of Annova in 2016 contributed to statutory operating profit of £2.5m (2017: £4.5m restated) and basic EPS of 4.9p (2017: 10.8p).
- Adjusted basic earnings per share increased to 13.1p (2017: 9.3p).
- Reported results for 2017 restated to reflect retrospective implementation of 2018’s new revenue recognition accounting standard, IFRS 15.
- Brexit contingency plans executed in November to protect ongoing business in EU-funded European satellite navigation programmes, Galileo and EGNOS.
- Subsequent Galileo contract wins by Space division approaching €20m in value, adding to earlier €3.9m EGNOS order, fully justified establishment of a new Irish Group holding company
- M&B division renewed a long-term BBC maintenance contract extension by at least 7 years and secured 6 new customers from the ARD group of German broadcasters.
- Early termination of Annova ring-fencing arrangements agreed with former owners to close out the earnout period and operate as a single Media Solutions division with M&B from 1 January 2019.
- BBC’s flagship TV news programmes now running live on Annova’s OpenMedia software.
- New customers added to OpenMedia client list, including German Hessischer Rundfunk and French L’Equipe 24.
- ESD division won a £2.4m defence-sector contract and extended its footprint in the transport and logistics domain with a c£2m subcontract win on Transport for London’s Future Bus Systems.
- Company Secretary, Natasha Laird, appointed to the board as Legal Director.
Commenting on the results and prospects, Mike Love, Chairman of SCISYS GROUP PLC said:
“I have little doubt that we would not be reporting such a positive picture in respect of revenue growth and future prospects had we not moved early and established a robust strategy to address the political uncertainties that were a serious threat to our space business. The re-domiciliation of the group to Dublin was a complex and expensive exercise but the benefits are already being reflected in our record opening order book and our optimism across all divisions for 2019 and beyond. All of this is underpinned by healthy operational cash flows that have resulted in a substantial reduction in net debt and an uplift in the recommended final dividend.”