IT services specialist
Indeed, four of the group's five divisions enjoyed significant growth - the exception being the environment unit where revenue fell from £4.44m to £2.47m, mainly as a result of its exposure to the UK public sector. And work continues on new projects such as Inferis, a new corporate mining information management system. Other parts of the business, notably the government and defence side, continued to win more work and contract wins from new and existing customers topped £20m. In the space division, meanwhile, all work on the Galileo satellite navigation system was completed successfully, resulting in significant follow-on contracts to take Galileo to full operational capability.
Last year's net cash balance was turned into a net debt of £2.4m, reflecting the purchase of the group's headquarters for £5m. This will save an estimated £0.5m a year in costs and opens up the possibility of renting out excess space.
Canaccord Genuity expects full-year pre-tax profit of £2.1m, giving EPS of 4.68p (£2m and 3.4p for 2010).
|ORD PRICE:||43p||MARKET VALUE:||£12.5m|
|TOUCH:||41-44p||12-MONTH HIGH:||57p||LOW: 37p|
|DIVIDEND YIELD:||2.6%||PE RATIO:||12|
|NET ASSET VALUE:||55p*||NET DEBT:||15%|
|Half-year to 30 Jun||Turnover (£m)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
*Includes intangible assets of £5.8m or 20p a share
SciSys is performing well, boasts a diverse revenue stream and has a solid order book - yet the shares trade on just nine times expected earnings. Long-term good value.
Last IC View: Good value, 52p 29 March 2011