IT software and services provider SciSys will have a poor 2007 but it is laying the foundations for a much better 2008.
Revenues dipped from £13.2m to £10.3m in the six months to June 2007 and the loss on continuing operations increased from £143,000 to £1.33m. Despite this, it is paying an interim dividend of 0.55p a share.
Large contracts were delayed and other programmes suffered cost overruns. It also lost a contract to a “bargain basement price”. All the main divisions generated lower turnover in the period.
SciSys has made £1m of annualised cost savings but these won’t show through until 2008. New purchase VCS will make a contribution of just over three months trading in 2007 but it will be next year when it has a significant effect.
VCS will help to boost the group’s space business and take it into higher margin areas. The acquisition also takes SciSys into the higher growth broadcast market. It supplies play out systems that are used to schedule programming – they were originally designed for the space market.
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