IT systems and services provider SciSys is back on a firm footing and ready to take advantage of any upturn.
Revenues grew 49% to £38.1m in 2008, helped by a full year contribution by VCS, which was acquired in September 2007. Like-for-like revenue growth was 23%. Stripping out amortisation and exceptional charges, a loss of £1.38m was turned into a profit of £1.5m.
A net debt position was turned into net cash of £1.36m by the end of 2008.
SciSys has strong positions in the space and broadcast markets and is also heavily involved in the government market. The main improvement last year came from the space division. The broadcast business has held up well because the customer base is mainly public sector broadcasters.
There has not been any real acceleration in government business as yet. There are positive signs but management is remaining cautious. There is a possibility that government IT budgets could be squeezed.
At the beginning of 2009 the order book was worth £25.9m and £18.3m of that should be recognised in the first half of 2009. Other contracts should be firmed up over the coming weeks. Analysts expect full year revenues to be around £40m.
At 31p a share, SciSys is valued at £8.83m.
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