After a ‘tough but successful’ first half of 2011 (see here) SciSys, the AIM-listed SITS supplier to the government, space, and broadcast & media sectors, met expectations in the second half despite ‘on-going uncertain and difficult market conditions’. Adjusted EBITDA for the year will meet market expectations (last year it achieved 4.0% adjusted EBITDA) and it also expects to show an improvement in net operating margins (last year was a modest 1.4%). Cash inflow has apparently also remained ‘healthy’, which helped it pay off the freehold on its head office for £5m.
Looking ahead, chairman Mike Love said Scisys made ‘progress’ on new orders in the last quarter of 2011, and now has a ‘comfortable’ order book for 2012. So he is confident that there will be further growth in sales, profits and net margins in 2012. Backing this optimism up is the £2.5m subcontract from Lockheed Martin for the MoD’s Future Deployable GEOINT (FDG) system announced in December (see here), and other ‘substantial wins’ in the space sector.