SCISYS Group PLC Pre-Close Trading Update and Notice of Results (0497O)
25 January 2019 - 6:00PM
UK Regulatory
TIDMSSY
RNS Number : 0497O
SCISYS Group PLC
25 January 2019
The information communicated in this announcement includes
inside information for the purposes of Article 7 of Regulation
596/2014
SCISYS Group PLC
("SCISYS", the "Group" or the "Company")
Pre-Close Trading Update and Notice of Results
SCISYS Group PLC ("SCISYS" - AIM: SSY; ESM: SCC), the supplier
of bespoke software systems, IT-based solutions and support
services to the space, media & broadcast, government, defence
and commerce sectors, is pleased to announce a trading update for
the year ended 31 December 2018, before entering into its close
period.
Trading Update:
The Directors expect that the Company's trading results for 2018
will comfortably meet current market guidance in respect of
revenues and adjusted operating profit.
The Group's order book remains strong, bolstered by a series of
contract wins with an aggregate value of cGBP23m announced since
mid-December. The closing 2018 order book was in the region of
GBP100m (2017: GBP91.3m). Net cash flow for 2018 was healthy, with
the year-end net debt reduced to GBP3.1m (2017: GBP5.9m) despite
substantial exceptional cash costs for the execution of Brexit
contingency plans and payment of a final earnout settlement
relating to the December 2016 Annova acquisition.
We continue to see solid organic growth across the Group,
notably in our Space and Enterprise Solutions & Defence (ESD)
divisions; both saw a significant expansion in the size of their
respective teams to meet demand.
Since the re-location of the Group's parent company to Ireland
at the end of November, the Directors have been pleased to announce
a succession of strategic orders for the Space division, including
key contract wins for the EU-funded Galileo satellite navigation
programme. ESD's order book was further underpinned by a
significant defence sector contract win in December 2018.
Accordingly, the Directors believe that they have mitigated
Brexit risks particularly affecting the Group and are on a good
footing to navigate Brexit going forward. Intra-Group currency
hedging arrangements will continue to mitigate exchange-rate
risks.
Our Munich-based subsidiary, Annova, was re-named SCISYS Media
Solutions GmbH in December 2018. A formal merger is planned with
SCISYS' Media & Broadcast division in 2019, ahead of previously
anticipated timescales. This will result in a combined division
with main offices in both Dortmund and Munich, led by Michael
Schüller, who was previously the CEO at Annova.
Mike Love, Chairman of SCISYS, said:
"We remain optimistic and confident for the Group's prospects
going forward, given in particular the strength of its order book
and end of year net debt position. SCISYS is well positioned to
deal with Brexit and other challenges faced by the business
community in 2019."
Notice of Results:
SCISYS expects to report its preliminary results for the year
ended 31 December 2018 on 28 March 2019.
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
tom.cooper@walbrookpr.com, 020 7933 8780 or 0797 122 1972 for
further details.
For further information please contact:
SCISYS Group PLC +44 (0)1249 466 466
Mike Love Chairman
-------------------- --------------------------
Klaus Heidrich Chief Executive
Officer
-------------------- --------------------------
Chris Cheetham Finance Director
-------------------- --------------------------
finnCap
(NOMAD & AIM Broker) +44 (0)20 7220 0500
--------------------------
Julian Blunt/James Corporate Finance
Thompson
Andrew Burdis Corporate Broking
-------------------- --------------------------
Walbrook PR +44 (0)20 7933 8780
--------------------------
Tom Cooper/Paul Vann +44 (0)797 122 1972
--------------------------
tom.cooper@walbrookpr.com
----------------------------------------------- --------------------------
Davy (ESM Broker) +353 1 679 6363
--------------------------
John Frain john.frain@davy.ie
--------------------------
About SCISYS Group:
Employing around 650 staff, SCISYS Group is a leading developer
of information and communications technology services, e-business,
web and mobile applications, editorial newsroom solutions 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, Thales Alenia Space, Arqiva, Vodafone, the
European Space Agency, Eumetsat, the BBC, Radio France, RTL, RNLI,
Pets at Home, Siemens and the National Trust. The Company's
registered office is in Dublin, with UK offices in Chippenham,
Bristol, Leicester and Reading and German offices in Bochum,
Dortmund, Darmstadt and Munich. More information is available at
www.scisys.co.uk.
This announcement has been released by Natasha Laird, Company
Secretary, on behalf of the Company.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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