Scisys' (SSY) shares slid nearly 13 per cent after the computer systems and services specialist admitted that a squeeze on customer budgets had led to slippage in some contracts. Trading in the second half should benefit from the start-up of some of these, but to reflect such delays broker FinnCap has trimmed its full-year pre-tax profits forecasts to £2.9m, giving EPS of 7.6p. That is still well up on last year's profits of £2.4m and EPS of 6.7p.
Despite the delays, Scisys still managed to increase sales by 9 per cent, while adjusted operating profits were flat at £1.3m. And in a move to restructure the cost base, management has reorganised the operating divisions, with government and defence, environment and applications management rolled into one unit called enterprise solutions and defence (ESD). This will allow greater flexibility in applying resources to different projects. Pre-tax profits in ESD rose by 43 per cent to £2.04m, with work continuing on the Warrior armoured vehicle upgrade, while an order to equip two further lifeboats was secured from the RNLI.
Profits were up from £1.1m to £1.7m in the space division, with the MakaluMedia business acquired in October last year now fully integrated. However, media and broadcast struggled as customer deferrals pushed some sales opportunities into 2014 and beyond, and profits halved to £1m.
| SCISYS (SSY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 72p | MARKET VALUE: | £21m | |
| TOUCH: | 72-73p | 12-MONTH HIGH: | 83p | LOW: 56p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 65p* | NET DEBT: | 11% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 19.6 | 0.93 | 2.40 | 0.40 |
| 2013 | 21.4 | 0.75 | 2.10 | 0.40 |
| % change | +9 | -20 | -13 | - |
Ex-div: 16 Oct Payment: 14 Nov *Includes intangible assets of £7.2m, or 25p a share | ||||
