Simbr
09 Jun 2016
Trading Update "Through the second half of last year the SCISYS business and management demonstrated a rapid recovery from the problem contract revealed in H1. Today’s AGM trading update shows that recovery continues through H1 of 2016 and, looking back exactly a year on from the issue, we have been impressed with the resilience and strength of the underlying business as it returns to former levels of profitability. Based on the FY 2016 performance to date, a strong order book, and an encouraging pipeline of new business opportunities, the management team is confident that SCISYS is well on track to meet our full-year market expectations of £37m of sales and £3.3m adj. EBITDA." scraped from Research Tree this morning, it's by finnCap
Simbrad
09 Jun 2016
"Through the second half of last year the SCISYS business and management demonstrated a rapid recovery from the problem contract revealed in H1. Today’s AGM trading update shows that recovery continues through H1 of 2016 and, looking back exactly a year on from the issue, we have been impressed with the resilience and strength of the underlying business as it returns to former levels of profitability. Based on the FY 2016 performance to date, a strong order book, and an encouraging pipeline of new business opportunities, the management team is confident that SCISYS is well on track to meet our full-year market expectations of £37m of sales and £3.3m adj. EBITDA." scraped from Research Tree this morning, it's by finnCap
Go Dink
08 Jun 2015
Re: FAO Go Dink: Profit Warning You're absolutely correct! Shares are recovering quite nicely.I sold at 55p so have missed out on about £80 to £90 so far.
Blanketstacker
04 Jun 2015
Re: FAO Go Dink: Profit Warning Well, I pretty much got that one wrong again! Having said that, I was lucky enough to get a few in the 40s this morning, so all is not lost. I am now averaging in the 60s. I will continue to hold for a while yet. My reasoning is thus:The company reamins profitable, and has considerable real assets.The yield is now very respectable, if maintained.At this price a takeover is a real possibility.A while back I had a brief exchange of e-mails with the chairman, Mike Love, and was very impressed by his efficiency, honesty, empathy and genuine concern for how his businesses are run.The mention of banking covenants is a REAL worry, but at least this is in the open, and the assets are there to encourage lenders to continue in their support.Good luck to us all, patient and impatient!
idontwanttolose
04 Jun 2015
FAO Go Dink: Profit Warning If I had 1200 shares in SSY worth £672.00 less the selling fee I would be on the phone and ask the company which covenant with the Bank was likely to be broken before I sold my shares.They have already recovered 16p per share from when I submitted my last post.Why the heck the RNS did not contain numbers I do not know.. you may well ask them that question as well.As always DYOR
Go Dink
04 Jun 2015
Re: Profit Warning Hoping for a bit of a bounce before the end of the day to reduce my loss (-48%!).But having read some articles I will be selling all my holding (only about 1200 shares) later this afternoon; definitely before 3PM.
Playa035
04 Jun 2015
Suspect Further Bad News Yes, this looks bad. Probably if past history is anything to go by the situation will get worse before it gets better. Bad news comes in Threes and we have now had Two.Certainly difficult now to have any confidence in how SciSys is run.Many better opportunities out there in the Market.
Go Dink
04 Jun 2015
Re: Profit Warning Held off selling this morning. Waiting for the dust to settle before deciding what to do.DYOR but I am holding for now.
idontwanttolose
04 Jun 2015
Profit Warning When the truth is completely out and the figures shown to the possible hit to profits I would consider buying the shares (as a risky punt with the possibility of a takeover)The really worrying statement:The Group remains profitable but nevertheless may breach certain of its UK banking covenants at 30 June 2015, when these are tested in mid-August. SCISYS PLC(SSY: AIM) Trading update SCISYS PLC (the "Group" or the "Company"
, the supplier of bespoke software systems, IT-based solutions, web and mobile application development and support services to the Media & Broadcast, Space, Government, Defence and Commercial sectors, is providing the following update on trading. SCISYS is experiencing difficulties in one major fixed price development project in its Enterprise Solutions and Defence (ESD) division. Having recently entered into the system integration phase it is now clear that the size and complexity of the project has been underestimated and the Company will have to make provisions in 2015 for the anticipated additional cost to complete. While trading elsewhere in ESD and in the SCISYS Space and Media & Broadcast divisions is progressing in line with plans, the Board now believes that trading in the other parts of the business will not fully compensate for the provisions necessary to complete this problem project and meet current guidance. In addition the Company continues to suffer from the strength of sterling over the weaker euro, which is having a negative impact on consolidated top line growth and the translation of profits denominated in euros. The Board now believes that these two issues will lead to a substantial short fall in profits for 2015 compared to the guidance issued in March.Over the five years from 2010 to 2014 SCISYS grew its operating profit from £1.7 million to £3.2 million and continues to be a strong niche player in providing system solutions that are critical to its customers' businesses. Its balance sheet remains strong and is underpinned by solid freehold property assets. The Group remains profitable but nevertheless may breach certain of its UK banking covenants at 30 June 2015, when these are tested in mid-August. The Company has consulted with its principal UK bank which remains supportive at this time.The Board believes that the Group's stated strategy remains valid and that further growth in profits and margins can be resumed once the problems with this one project have been resolved but that the timescales to meet its stated targets will need to be revised. Mike Love, Chairman of SCISYS, commented:"The Board views a profits warning as deeply regrettable and wholly disappointing given the strong and robust results achieved in the preceding five years. Some of the factors behind this update in performance have been within the Company's control, but the exchange rate issue is not. "We believe in general that our review processes and project controls across the Group are robust and that this failure in estimation and breakdown in controls is an isolated incident among many current successful projects."SCISYS remains fundamentally strong and confident in its long term ambitions."
mnamna
22 May 2015
Re: Decent long term spot? Lots of patience required?They did well to increase profits on reduced revenue last year but they can't repeat this trick indefinitely.Unless SSY can unlock some decent growth it's not going anywhere. The business is characterised by lumpy contracts. Without decent growth there is always the risk that one of it's niche markets falls over and we get a profit warning. I only have a small investment while I wait to see which way this will go, and am happily settled in for a long wait if necessary,cheers
Welsheagle
21 May 2015
Re: Decent long term spot? The good fundamentals will eventually lead to gains - patience required.
Blanketstacker
21 May 2015
Decent long term spot? I have been keeping an eye here for a while, waiting for some sort of fall, but it has not happened. I am now wondering if this could be a decent investment as it stands.The figures seem sound
ER = 9.2PEG = 0.74ROCE = 18%Yield = c2%Div cover = x4Price to book = 1.2No debtThe company, which provides IT services across Europe from bases in Britain and Germany, has a stated aim of growing sales to £60m by 2018 by both acquisition and organic growth. It seems to be on track to do this.The last statement saw profits up on reduced revenue, despite the now obligatory mention of 'currency headwinds'. To help with this hedging is now in place. Management seem very competent and with a good eye to shareholder value.Two indicators of possible undervaluation here are the director buys in the 90s last year,and the relatively recent increase in holding by Downing.Does anyone have an opinion please?
