Scisys profits hit by difficult project _ insider media ltd

Chippenham-headquartered software company SCISYS has reported a drop in pre-tax profit after experiencing difficulties in a key project. However, the business reported improved trading towards the end of the year following new contract wins. According to its unaudited preliminary results for the year ended 31 December 2015, pre-tax profit fell to £614,000 from £3m in 2014. Revenue also dipped to £36.1m, from £40.4m, on a constant currency basis. The company said the results had been affected by one major fixed-price development project and that the issues with this had been resolved


during the year. New contracts were secured during the period, including £4m to develop a customs compliance management information system for the UK Ministry of Defence and an EU-funded agreement with Thales Alenia Space France valued at more than €5m (£3.9m) for the Galileo Ground Mission Segment. The company’s 2016 opening order book stands at £37.2m compared to £30.3m the year before.

Mike Love, chairman of SCISYS, said: “SCISYS advised investors in June 2015 that it was experiencing difficulties in one major fixed price development project in its enterprise solutions and defence division. “We made provisions at that juncture for the anticipated additional costs to complete the project and issued revised market guidance for the then anticipated full year’s trading performance. “In the interim the issues with the problem project have been fully resolved and concluded in a manner satisfactory to both the company and the customer. “During the second half of the year we started seeing a healthy recovery in trading with a number of significant contract wins announced at the end of 2015. We are seeing an encouraging start to 2016 and anticipate a healthy first half. However, the volatile sterling/euro exchange rate remains a factor.” SCISYS employs about 450 staff and operates across the media and broadcast, space, government and defence and commercial sectors.

Chippenham-headquartered software company SCISYS has reported a drop in pre-tax profit after experiencing difficulties in a key project. However, the business reported improved trading towards the end of the year following new contract wins. According to its unaudited preliminary results for the year ended 31 December 2015, pre-tax profit fell to £614,000 from £3m in 2014. Revenue also dipped to £36.1m, from £40.4m, on a constant currency basis. The company said the results had been affected by one major fixed-price development project and that the issues with this had been resolved during the year. New contracts were secured during the period, including £4m to develop a customs compliance management information system for the UK Ministry of Defence and an EU-funded agreement with Thales Alenia Space France valued at more than €5m (£3.9m) for the Galileo Ground Mission Segment. The company’s 2016 opening order book stands at £37.2m compared to £30.3m the year before.

Mike Love, chairman of SCISYS, said: “SCISYS advised investors in June 2015 that it was experiencing difficulties in one major fixed price development project in its enterprise solutions and defence division. “We made provisions at that juncture for the anticipated additional costs to complete the project and issued revised market guidance for the then anticipated full year’s trading performance. “In the interim the issues with the problem project have been fully resolved and concluded in a manner satisfactory to both the company and the customer. “During the second half of the year we started seeing a healthy recovery in trading with a number of significant contract wins announced at the end of 2015. We are seeing an encouraging start to 2016 and anticipate a healthy first half. However, the volatile sterling/euro exchange rate remains a factor.

” SCISYS employs about 450 staff and operates across the media and broadcast, space, government and defence and commercial sectors. Chippenham-headquartered software company SCISYS has reported a drop in pre-tax profit after experiencing difficulties in a key project. However, the business reported improved trading towards the end of the year following new contract wins. According to its unaudited preliminary results for the year ended 31 December 2015, pre-tax profit fell to £614,000 from £3m in 2014. Revenue also dipped to £36.1m, from £40.4m, on a constant currency basis.

The company said the results had been affected by one major fixed-price development project and that the issues with this had been resolved during the year. New contracts were secured during the period, including £4m to develop a customs compliance management information system for the UK Ministry of Defence and an EU-funded agreement with Thales Alenia Space France valued at more than €5m (£3.9m) for the Galileo Ground Mission Segment. The company’s 2016 opening order book stands at £37.2m compared to £30.3m the year before. Mike Love, chairman of SCISYS, said: “SCISYS advised investors in June 2015 that it was experiencing difficulties in one major fixed price development project in its enterprise solutions and defence division. “We made provisions at that juncture for the anticipated additional costs to complete the project and issued revised market guidance for the then anticipated full year’s trading performance. “In the interim the issues with the problem project have been fully resolved and concluded in a manner satisfactory to both the company and the customer.

“During the second half of the year we started seeing a healthy recovery in trading with a number of significant contract wins announced at the end of 2015. We are seeing an encouraging start to 2016 and anticipate a healthy first half. However, the volatile sterling/euro exchange rate remains a factor.” SCISYS employs about 450 staff and operates across the media and broadcast, space, government and defence and commercial sectors.

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