SciSys on track for growth

SciSys met expectations for first half trading and has maintained a solid order book throughout the period despite challenging conditions in many of its key markets. In an ‘in line’ trading update this morning the company made no change to current guidance for the year. Consensus forecasts suggest 7% revenue growth and a fourfold increase in PBT to £2.2m. If it achieves that, it would be a very respectable performance for a supplier to the cash-strapped UK government & defence markets - both markets which we expect to remain in negative territory in 2011. Of course SciSys does have the advantage of a broader customer base than some rivals (other key sectors are media, space, environment and application support) and deriving over half its revenue outside the UK. Nevertheless there is a hint of justifiable caution in the statement as SciSys “remains alert to the broader economic uncertainty”.