"Buying German newsroom software supplier Annova late last year topped off a great 2016 for AIM-listed LSE:SSY:Scisys. It was a bold move and one that rightly buried the contract slip-up a year earlier deep into the history books. Up over 50% in ..."
"LSE:SSY:Scisys had a major hiccup last year that wiped out over a third of its value. Management told us this was a one-off. We believed them, and took encouragement in director share-buying in the spring.That faith was repaid, and the Â£33 ..."
"Finding good companies when they suffer a temporary blip is an investor's dream. It's why backing Scisys was a smart move, writes Lee Wild.LSE:SSY:Scisys is a fighter. Knocked off course last year by a miss-priced contract, the AIM-listed ..."
"Let's be honest: it's been a difficult year for LSE:SSY:Scisys. The likeable high-tech IT systems firm warned 12 months ago it had under-priced a major contract and profits would suffer. They did, compounded by the translation effect of a strong ..."
"Through the second half of last year the SCISYS business and management demonstrated a rapid recovery from the problem contract revealed in H1. Todays 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
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.
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
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 (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."
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:
PER = 9.2
PEG = 0.74
ROCE = 18%
Yield = c2%
Div cover = x4
Price to book = 1.2
The 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.
(post on if you agree)
Read full longer post:
It is estimated that over 90% of AIM stocks are INFECTED by short-sellers !
Many highly popular stocks are going down even on GOOD NEWS !
# IF you were a short-seller, BLUFFING, (basically manipulating a shares' price) about a company's overvalued share price, you might not want to *draw attention to yourself since you could get accused of stock manipulation. So you would hope (OR PLAN FOR) others to get involved and to present SEEMINGLY GOOD REASONS to short the stock.
You would want to put AS MUCH FEAR INTO 'LONGS' as possible and would use high volume short trading as well as buying to drive the share price down as low as you can and as long as you can. You really want the longs to fold and to get out of the game. If you are consistently seeing sellers overwhelming buyers driving a share price down as a stock seems to be going up, I can assure you it's probably shorts' selling, since longs are totally motivated to sell their shares at the highest possible selling price. #
IT is easier to tank a share price, rather than make it go UP, by short-selling.
RUINOUS to genuine investors.
They may be able to buy in cheap BUT what's the good, if the stock never really recovers?
AND when they have got you all hooked on the 'lovely' new all-time LOW.....They'll SHORT IT AGAIN !
# ChalieHarper - posted on iii
IF a fund owns a large share holding in a firm and is long.... whilst waiting for its end game to materialise, it loans out any number of its shares to a shorter...the shorter then manipulate the share price down making £X amount when short ended.... the shorter then gives the loaned shares back and splits the proceeds 50/50.
They both make cash, probably during a time when not much is happening with the sp. IT's a WIN-WIN for them but BAD news for the pi's who as usual may have sold at a loss because the cash has to come from somewhere. #
I'm struggling to understand why SSY would want to do this. Arguably it's immaterial, since it's only £100k, and they had nearly £4m cash in the bank at the end of the year. However, from reading posts made on other BB's, the consensus is that buybacks are rarely in the best interests of the shareholder.
SCISYS PLC ('SCISYS' or the 'Company'; AIM: SSY) - the supplier of bespoke software systems, IT based solutions and support services to the Media & Broadcast, Space, Government, Defence and Environment sectors - is pleased to announce that it has signed a one year extension to its contract with the European Space Agency (ESA) to provide a Flight Dynamics Operations Engineering Service to the European Space Operations Centre ("ESOC") in Darmstadt, Germany, with CGI Germany GmbH & Co. KG as a subcontractor.The contract is worth in excess of 5M, the value of which will be recognised in the 2014 financial year, and was contemplated in existing market guidance.
SCISYS engineers and flight dynamics experts are providing a service to the earth observation, science and astronomy missions operated by ESOC. The service encompasses attitude and orbit determination, command generation, mission analysis and planning, as well as software development, procedure generation and test and validation. These activities are core to spacecraft operations and are performed alongside European Space industry partners.
Dr. Horst Wulf, Divisional Director of Space for SCISYS, said:
"The extension to this contract cements the long-term partnership we have with ESA, where SCISYS has provided continuous support in this domain for more than two decades. Flight Dynamics and the related guidance, navigation and control area is a core capability within SCISYS, which feeds into our end-to-end ground segment offering."
Dr Mike Love, Chairman of SCISYS said:
"We are delighted that ESA has extended its contract with SCISYS, which demonstrates our highly capable and competent engineers are adding value to an important and loyal customer of ours. The teaming with CGI also continues the trusted cooperation between the companies that has been established over many years in our Darmstadt business."
I have to admit I was unnerved when Jamesthetrain announced his exit from this share last week. Interestingly, the IC published their own update on the following day, which highlights a £1.2m restructuring cost in 2013 that suppressed a better performance for the year.
SCISYS PLC ('SCISYS' or the 'Company'), the supplier of bespoke software systems, IT based solutions and support services to the Media & Broadcast, Space, Government and Defence sectors, announces a trading update for the year ended 31 December 2013 prior to entering its close period.
The Directors are pleased to report underlying results for 2013 in line with September's market guidance. Healthy order intake in the fourth quarter enables the Company to enter 2014 with a solid opening order book and an encouraging new business pipeline to underpin expectations for the year. The balance sheet remains strong.
The Enterprise Solutions & Defence (ESD) division traded with increasing confidence in the second half of 2013, securing several new contract wins in the final quarter. The Space division's performance echoed that of ESD and the improvement in order intake towards the year end provides a solid foundation for the prospects of ESD and Space for 2014 and beyond. Deferred procurement activity amongst its existing and prospective customer base continued to have an adverse impact on the order intake of the Media & Broadcast division.
The financial benefit of the restructuring actions taken during the second half year, focused on aligning the Company's cost base with changes in its operating markets, will be felt fully in 2014.
SCISYS announced on 20 December 2013 that Klaus Heidrich would take over from David Jones as Chief Executive Officer on 1 January 2014. This change was part of the Group's previously announced succession planning process. David Jones remains as an Executive Director and Deputy Chairman.
The Board believes that SCISYS can deliver further profitable progress in 2014. Acquisition opportunities will continue to be monitored by the Board during the year and will be pursued where strategically appropriate.
Commenting, Chairman of SCISYS, Mike Love, said:
"Despite several challenges during the second half I am pleased to report that our full year results for 2013 will be in line with expectations and that the Company has been able to deliver another performance which emphasises the resilience of the Group as a whole."
SCISYS expects to report its preliminary results for the year ended 31 December 2013 on 26 March 2014.
SCISYS PLC (AIM: SSY) the supplier of bespoke ICT software systems, IT based business solutions and support services to the Media & Broadcast, Space, Government & Defence and Environment sectors is pleased to announce that its Media & Broadcast division has received an order under its framework agreement with the BBC for the replacement of the dira! radio production and playout system used on all radio channels at BBC Scotland.
The current dira! systems as supplied by SCISYS will be replaced across Scotland (Glasgow Pacific Quay, Edinburgh and, at a later stage, in 9 regional sites) with dira! Next Generation windows-based systems. Additionally the BBC will receive an extra system for validation and training purposes.
It is expected that the project value will exceed £1million in total, commencing immediately and is scheduled for completion during 2015.
David Jones, CEO of SCISYS, commented "This is a key contract win for SCISYS and underlines the strength of the relationship established between SCISYS and the BBC. It provides further long term revenue visibility and gives further comfort on our progress towards meeting market expectations for the current financial year."
good results and full of positivity re immediate and medium term.
also like the add-ons to the core business to come re sub rental income and bolt on's.
there has been a good boost since the chart break out at 54p
i dont expect any fireworks and a 2-3 year hold riding the growth in aerospace in UK.
eps probably capable to be closer to 10p in 2/3 years
and maybe they can justify 10t P/E but certainly think 8t as a minimum
so that gives me target price of between 80p-100p in 2/3 year time (12-15% p.a. + 2% divi)
I'm very happy with today's Trading Update and see that Edison write of their client,
"SCISYS expects to report FY12 adjusted EBITA in line with market expectations and record a further improvement in operating margins. While the group order book is healthy, the UK public sector remains challenging, hence we have eased back our FY13 forecasts. However, FY13 will benefit from a full contribution from the recently acquired MakaluMedia (MM) and we expect more news on the groupâs involvement in the Warrior upgrade project. Given our maintained long-term margin target of 7.9%, our discounted cash flow values the stock at c 90p"
SCISYS PLC (AIM : SSY), ('SCISYS' or the 'Company') - the supplier of bespoke software systems, IT based solutions and support services to the Media Broadcast, Space, Government & Defence and Environment sectors is providing a trading update for the year ended 31 December 2012 prior to entering its close period.
The Directors are pleased to report that the Company performed in line with expectations in the second half of the year and expect to report adjusted EBITA for the year consistent with market expectations, showing further improvement in net operating margins. Cash inflows have remained strong and underpin the Company's progressive dividend policy. Although its markets remain difficult, the Company anticipates reporting a healthy opening order book and new business pipeline for 2013.
The Government & Defence and Media Broadcast divisions both finished 2012 on a strong footing with a number of key contract wins underpinning their prospects for 2013 and beyond. The Environment division's short term order book remains uncertain, but there are encouraging signs of movement in the prospective business pipeline that should convert to new orders. The Applications Management division has performed in line with expectations. With a strengthening performance from the Space division in 2012, the Board anticipates that all divisions will continue to perform positively and in line with expectations for 2013.
The integration of the MakaluMedia acquisition, completed in October 2012, is going well although it will not have made a material contribution to 2012 Group profits.
The Board continues to maintain a close focus on the Company's cost base and will ensure a judicious balance between capacity and demand for resources. Additional tenants have been secured for leasing office space at market rents from 2013 at the Company headquarters building in Chippenham which will further reduce central overhead costs.
SCISYS announced on 27 December 2012 the appointment of a new non-executive director. David Coghlan's experience in UK corporate affairs will be valuable to the Board. He will chair the audit committee as well as being a member of the remuneration committee.
The Board remains cautious but believes that the business is capable of further progress in 2013. Organic revenue growth is likely to remain challenging in the UK public sector. Acquisition opportunities will continue to be monitored by the Board during the year and will be pursued where strategically appropriate.
Commenting, Chairman of SCISYS, Mike Love, said:
"Despite several challenges during the second half I am pleased that our full year results for 2012 are in line with expectations and that the Company has been able to deliver another good performance, yet again demonstrating the underlying resilience of the SCISYS business. Our key focus remains further margin growth."
SCISYS expects to report its preliminary results for the year ended 31 December 2012 on 21 March 2013.
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