IT services provider SCISYS has been given a one year extension to a European Space Agency contract.
SCISYS is providing a flight dynamics operations engineering service to the operations centre in Germany. This will generate €5m in 2014, which is around 10% of the forecast revenues of £44.3m.At the end of 2013, the order book was worth around £33.7m at the end of January.
In 2013, revenues improved from £39.5m to £42.6m with the growth coming from the space systems division. Underlying profit improved from £2.45m to £3m, although this includes exceptional charges of £1.19m, up from £328,000, relating to restructuring costs. The restructuring enabled the combined enterprise solutions division to report a higher profit despite a dip in revenues. The media and broadcasting division was hit by delayed orders.
House broker finnCap forecasts an improvement in profit to £3.2m, although a higher tax charge will leave earnings per share unchanged at 8.8p a share.
At 92p a share, SCISYS is valued at £26.8m. The shares are trading on just over 10 times prospective 2014 earnings. The prospective dividend yield is 1.7% - based on 1.6p a share dividend.
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