SciSys is likely to enjoy further growth in sales, profits and net margins in 2012, the company said today in a pre-close trading statement. The Chippenham-based firm, which has a major base in Bristol, is a leading developer of information and communications technology services, e-business and advanced technology solutions serving the Media Broadcast, Space, Government & Defence, Environment and Applications Support sectors
It expects to report adjusted EBITA for the year in line with market expectations together with a further improvement in net operating margins. Today's statement adds: "Significantly, cash inflows have remained healthy and the company’s balance sheet has further strengthened such that borrowings secured to fund the acquisition of the company’s head office freehold premises during the year for £5m were balanced by cash deposits at the year end. Earnings are likely to continue to benefit from an overall low effective corporation tax rate and the Board anticipates that it will maintain its progressive dividend policy."
It continues: "Investors will be aware from a number of recent announcements that SciSys secured a number of important new business gains during the last quarter of 2011. These include significant defence work alongside Lockheed Martin and a number of substantial contract wins in the Space sector.
Chairman Mike Love, concluded: “In a repeat of our experience of 2010, our interim accounts for 2011 reported favourable first half results whilst issuing a note of caution about potential challenges to be overcome during the second half. I am pleased that our full year results for 2011 are in line with expectations and that the company has been able to deliver a good performance, yet again demonstrating the underlying resilience of the SciSys business."
Dr Love, who has stepped back from day-to-day control of the company to become its non-executive chairman, added: " The recently announced board changes will ensure continuity in the progress that the business is making.” David Jones has moved up from chief operations officer to the role of group chief executive while Klaus Martin Heidrich has joined the board as COO as part of a long-term succession plan for SciSys which also has bases in Reading and three locations in Germany.
SciSys expects to report its preliminary results for the year ended December 31 on March 22. Its shares rose 1% or 0.5p in early trading to 49p.
