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  • BY: Andrew Hore |
  • POSTED: 09/10/2011 |

IT services provider SciSys was boosted by a strong recovery in its space division in the first half of 2011. 

All of the company’s divisions, with the exception of environment, made progress in the first half and they are all making money. Revenues improved by 5% to £22m

Space had the smallest revenue growth in the first half but improved margins meant that the profit growth was much higher. The UK business swung from loss to profit. There is a strong order book for this business.

The media broadcast business is developing new geographic markets and this should help it to continue to grow.

The government and defence division is ahead of budget, despite cut backs in government spending, and there are a number of large contracts that could potentially be won. Support revenues continue to grow. 

Delays in spending on contracts have hit the environment division. SciSys wants to maintain capacity but it will use staff in this division in other areas.

There was net debt of £1.4m at the end of June 2011. That was after the company spent £5m on its Chippenham head office. That will help to costs by £500,000 a year with very little loss in terms of interest. Edison expects a much smaller net debt figure at the end of 2011.

The interim dividend was increased by 9% to 0.36p a share and the total dividend should improve from 1.1p a share to 1.2p a share.

SciSys is cautious about the second half. Edison forecasts a full year profit of £2.2m, up from £2m in 2010.  At 44p a share, SciSys is valued at £12.8m. The shares are trading on seven times 2011 prospective earnings.

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