Source - RNS
RNS Number : 4883K
SCISYS PLC
22 September 2016
 

The information communicated in this announcement includes inside information for the purposes of Article 7 of Regulation 596/2014 (MAR).

 

 

SCISYS PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

SCISYS PLC, AIM stock code: SSY, ('SCISYS', the 'Group' or the 'Company') - the supplier of bespoke software systems and IT based solutions for its clients' core business processes is pleased to announce its Interim Results for the six months ended 30 June 2016.

 

Financial and Operational Highlights:

 

· Operating profit at £1.1m (2015: loss of £1.1m).

· Revenue up 35% to £22.2m (2015: £16.5m).

· Strong closing half year order book of £35m (2015: £28m).

· Net funds of £1.4m (2015: net debt £1.9m).

· Interim dividend reinstated at 0.53 pence per share.

· Basic earnings per share at 2.8 pence (2015: loss per share of 4.9 pence).

· The South African Broadcasting Corporation buys dira! from M&B division.

· ESD provides support to Vodafone for the UK national 105 phone line service.

· Space division secures over £3.2m of new contracts, mainly from existing programmes. 

 

Mike Love, Chairman of SCISYS, commenting on the results, said:

 

"We are pleased with this bounce back to profitability and healthy organic growth in revenues at the half-year mark.  At this point in time we fully anticipate that we can achieve the uplift in full year market expectations as announced in our trading update in August."

 

For further information please contact: 

SCISYS PLC


+44 (0)1249 466 466

Mike Love

Chairman


Klaus Heidrich

Chief Executive Officer


Chris Cheetham

Finance Director


finnCap (NOMAD & Broker)


+44 (0)20 7220 0500

Julian Blunt

Corporate Finance


Mia Gardner

Corporate Broking


WalbrookPR

Tom Cooper/Paul Vann


+44 (0) 20 7933 8780

+44 (0)797 122 1972

[email protected]

 

About SCISYS:

Employing nearly 450 staff, SCISYS group is a leading developer of Information and Communications Technology services, e-Business, web and mobile applications and advanced technology solutions. The Company operates in a broad spectrum of market sectors including Media & Broadcast, Space, Government and Defence and Commercial sectors. SCISYS clients are predominantly blue chip and public sector organizations. Customers include the Environment Agency, the Ministry of Defence, Airbus Defence & Space, Arqiva, Vodafone, the European Space Agency, Eumetsat, the BBC, RNLI, AON, Interflora and the National Trust. The Company has UK offices in Chippenham, Bristol, Leicester and Reading and two offices located in Germany. More information is available at www.scisys.co.uk

 

 

Introduction

SCISYS is reporting strong results for the first half of 2016.  Although revenues are at a record level, profitability during the first half has been hit by hedging losses as a result of wide currency fluctuations. However we expect significant benefit to be derived from the weaker pound for the remainder of the year if the euro-sterling exchange rate remains at current levels.

 

Our order book remains robust and at the end of June was £35m (2015: £28m), which is marginally behind our record opening order book for 2016 and 25% higher than June 2015.   

 

This trading performance is reflected by a further strengthening of the Group's cash position. 

 

Key financials

The Group's revenue totalled £22.2m (2015: £16.5m), a record historic first-half level, including £8.6m from ESD, £9.6m from Space, £3.5m from M&B and £0.4m from Xibis. In the six months ended 30 June 2016, the Group's operating profit was £1.1m (2015: loss of £1.1m).  Basic earnings per share for the period recovered to 2.8 pence (2015: loss per share of 4.9 pence).  A fuller explanation is available in the Finance review section.

 

Operating Review

Introduction

All divisions have performed well during the first half of 2016.  Contracts were delivered on time and within budget and helped to improve our cash position.  Major new contracts were won and added to our strong order book. There are strong prospects for future contract wins in all divisions during the second half, some of which have materialised already.

 

We do not expect any adverse operational consequences as a result of June's EU referendum outcome impacting any divisional opportunities in the short to medium term.

 

Enterprise Solutions & Defence (ESD) division

ESD has had an excellent first half year and has impressively substantiated the earlier signs of recovery.  Based on the very strong order book at the beginning of the year and significant recurring revenues from well-established customers the Division has delivered revenues of £8.6m, 79% up on the first half of 2015.

 

Current projects are all in a healthy state, on plan in terms of cost and time to deliver, and have helped to achieve a very good contribution margin of 29%.

 

The 105 national power-cut phone line service provided by Vodafone for the Energy Networks Association (ENA) went live in April. SCISYS delivered the call routing component of the service, similar to the 101 and 111 systems previously supplied by SCISYS.  Callers dialling the 105 number are put through to their local electricity network operator to report or receive information about power cuts and to report damage to electricity power lines and substations.

 

In September another significant contract was secured with the UK Ministry of Defence (MOD) to deliver further research and software development services to the Defence Science and Technology Laboratory (Dstl). The project extends SCISYS' reach into the area of tactical combat systems in surface warships as it will create and demonstrate a new decision support system for use by the Royal Navy.

 

Based on the strong order book and the successful delivery the Division is well positioned to end the year on a similarly strong footing.

 


Six months ended 30 June 2016

£'000

Six months ended 30 June 2015

£'000

Year ended

31 December 2015

£'000

Revenue

8,598

4,809

12,202

Contribution value

2,526

(378)

1,745

Contribution margin

29%

(8%)

14%

 

Space division

During the first half of the year our Space division has secured over £3.2m of new contracts, mainly from existing programmes; these include the European satellite-navigation system, Galileo, and the European Space Agency's (ESA) rover mission to Mars, ExoMars. 

 

With the launch of the first of two ExoMars missions, Europe is now on the way to Mars. This historic step was also supported by SCISYS Flight Dynamics experts working in the Flight Control Team of ExoMars at ESOC in Darmstadt.

 

Consequently, the Space division has been able to increase its revenues during the first half year to £9.6m, 22% ahead of the comparative period in 2015. Divisional contribution benefitted even more and moved the divisional contribution margin to 20%.

 

There are considerable bid opportunities with ESA, Eumetsat and also from German national and bilateral programmes that, if won, will secure revenues for the Space division for several years.

 

Significant progress has been made with SCISYS's proprietary PLENITER product which provides reusable functional modules to operate complete satellite missions. In a post period event OneWeb, a new internet telecommunications enterprise which is preparing to build, deploy and operate the World's biggest satellite constellation to provide global internet access for all, has chosen PLENITER to plan its mission of several hundred satellites.

 

As an ongoing commitment to innovation in space, SCISYS and PLENITER have become partners of the PTScientists and their "Mission to the Moon" in the frame of the Google Lunar-X-Price competition.


Six months ended 30 June 2016

£'000

Six months ended 30 June 2015

£'000

Year ended

31 December 2015

£'000

 

Revenue

9,601

7,868

16,432

Contribution value

1,917

1,215

3,283

Contribution margin

20%

15%

20%

 

Media & Broadcast (M&B) division

M&B secured its first win in South Africa in April.  A €2m contract for South Africa Broadcasting Corporation demonstrates dira!'s international reputation hard won over many years with state broadcasters in Europe. This was the second major win during the period, adding to a £2m contract with a major UK radio broadcaster won in February.

 

Although won well into the first 6 months of 2016, both contracts, together with the robust repeat business and smaller wins from the existing client base, have helped to deliver a healthy performance for the first half year. With its strengthened order book position the outlook for MBS during the second half year is encouraging.

 


Six months ended 30 June 2016

£'000

Six months ended 30 June 2015

£'000

Year ended

31 December 2015

£'000

 

Revenue

3,503

3,128

6,355

Contribution value

959

948

2,011

Contribution margin

27%

30%

32%

 

Xibis Limited

Xibis has broken even during the first half but has sufficient wins and quality near prospects that can be delivered during the second half to meet its expected budgeted full year profit and revenue targets.

 

£000

Six months ended 30 June 2016

Six months ended 30 June 2015

Year ended

31 December 2015

 

Revenue

359

398

901

Contribution value

5

(64)

27

Contribution margin

1%

(16)%

3%

Finance review

Results for the half year to June 2016 demonstrate that SCISYS has bounced back from last year's setbacks and built on the recovery witnessed in the second half of 2015.

 

Total revenues were up 35% to £22.2m (2015: £16.5m) and the professional fees' component increased by 40% to £18.4m (2015: £13.1m). Despite absorbing a foreign exchange expense of £0.5m that relates to future periods the Group generated an operating profit of £1.1m (2015: £1.1m loss). Basic earnings per share for the period were 2.8p (2015: 4.9p loss per share).

 

The average euro-sterling exchange rate for the period was €1.28/£, which represents an 8% uplift from the comparative 2015 value of €1.38/£. This movement boosted revenues to a record historic first-half level.

 

Approximately half of the Group's business is conducted in euros. SCISYS mitigates its exposure to exchange rate movements by entering into hedging contracts to convert forecast surplus euros into sterling at fixed forward rates. Such contracts are revalued quarterly on a mark-to-market basis. Following June's referendum vote for the UK to leave the EU the value of the pound fell sharply against the euro. This gave rise to an adverse revaluation at 30 June of the Company's remaining 2016 and 2017 hedging contracts and resulted in a £0.5m charge in the income statement for the first half of the year.

 

While currency hedging contracts restrict losses when spot rates move adversely, potential gains from favourable fluctuations are also limited and the Company realised a loss of £0.2m on trades that matured in the period.

 

The uplift in trading performance was reflected in buoyant cash flows. At the end of the reporting period, the Group had bank deposits (comprising cash and cash equivalents less overdrafts) of £5.6m (30 June 2015: £3.0m). Unutilised working capital facilities totalled £4.6m (30 June 2015: £3.1m). Group debt excluding bank overdrafts at the period end was £4.2m (30 June 2015: £4.9m). The resulting net cash was £1.4m, £2.4m higher than the 2015 year-end position of £1.0m net debt (30 June 2015: £1.9m net debt).

 

The effective tax rate for the period of 15% reflects the anticipated rate for 2016 as a whole. Tax rates between the first halves of 2015 and 2016 are not comparable due to last year's losses. SCISYS continues to benefit from the tax-credit system for UK expenditure on Research & Development. Credits are received in the form of cash rebates from HM Revenue & Customs, and this serves to offset the relatively high corporate tax rates experienced by our German business.

 

The half-year accounts are presented on a basis consistent with policies to be adopted for the Annual Report & Accounts for the year ending 31 December 2016.

 

 

 

Dividend

Our final dividend for full year to 31 December 2015 was 1.78 pence per share and put us back on track in our stated strategy of progressive dividend growth of around 10% per annum.  I can now confirm that an interim dividend of 0.53 pence per share will be paid on 10 November 2016 to shareholders on the register as at 14 October 2016.  The shares are expected to go ex-dividend on 13 October 2016.  

 

Outlook 

We are pleased with this bounce back to profitability and healthy organic growth in revenues at the half-year mark.  At this point in time we fully anticipate that we can achieve the uplift in full year market expectations as announced in our trading update in August.

 

Given the strength of our short term pipeline we expect the top line momentum achieved during the first six months to continue for the rest of the year. Our closing order book position and recent contract wins provide a solid foundation for the second half of the year.   All divisions are performing to or are exceeding budget. As has been seen in previous years, we anticipate a stronger trading performance in the latter half of the year, and continued organic growth well in line with our medium-term objectives. We also expect to see positive impacts on profitability from the weaker pound if this continues for the second half. 

 

We continue to look for opportunities to acquire companies where there is a good market, product and cultural fit.

 

Based on current performance on projects and order pipeline, the Directors remain fully confident in the future prospects of the Group. 

 

Chairman

Mike Love

 



 

Consolidated Income Statement

 


Unaudited

Unaudited

Audited


6 months to
30 June
2016

6 months to 30 June      2015

Year ended 31 December 2015


£'000

£'000

£'000

Revenue (note 2)

22,223

16,524

36,106

Operating costs

(21,165)

(17,654)

(35,299)

Share of results of associates

13

3

Operating profit/(loss)

1,071

(1,130)

810

"Adjusted operating profit" being operating profit before share based payments, exceptional charges and amortisation arising on business combinations 

1,090

(1,108)

821

Share based payments

(19)

(22)

(11)

Operating profit/(loss)

1,071

(1,130)

810

Finance costs

(99)

(97)

(198)

Finance income

1

1

2

Profit/(loss) before tax

973

(1,226)

614

Tax charge

(146)

(189)

(241)

Profit/(loss)for the period attributable to equity holders of the parent

827

(1,415)

373





Earnings/(loss) per share (note 5)




Basic

2.8p

(4.9)p

1.3p

Diluted

2.7p

(4.6)p

1.2p





 

 

Consolidated Statement of Comprehensive Income

 


Unaudited

Unaudited

Audited


6 months to
30 June
2016

6 months to 30 June      2015

Year ended 31 December 2015


£'000

£'000

£'000

Profit/(loss) for the period

827

(1,415)

373

Other comprehensive income/(expense) not recycling through the Income Statement




Currency translation differences on foreign currency investments

826

(708)

(431)

Total comprehensive income/(expense) for the period attributable to equity holders of the parent

1,653

(2,123)

(58)

 



 

Consolidated Statement of Changes in Equity

 

For the six months ended

Share Capital

Share Premium

Merger Reserve

Capital Redemp-tion Reserve

Trans-lation Reserve

Retained Earnings

Total

30 June 2016 (unaudited)

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance as at 1 January 2016

7,272

143

943

83

416

11,199

20,056

Total comprehensive income for the period








Profit in the period

827

827

Other comprehensive income








Foreign currency translation

826

826

Total comprehensive income for the period

826

827

1,653

Transactions with owners, recorded directly in equity








Contributions by and distributions to owners








Share based payments

19

19

Total contributions by and distributions to owners

19

19

Balance as at 30 June 2016

7,272

143

943

83

1,242

12,045

21,728

















 

For the six months ended

Share Capital

Share Premium

Merger Reserve

Capital Redemp-tion Reserve

Trans-lation Reserve

Retained Earnings

Total

30 June 2015 (unaudited)

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance as at 1 January 2015

7,272

143

943

83

847

11,169

20,457

Total comprehensive income for the period








Loss in the period

(1,415)

(1,415)

Other comprehensive income








Foreign currency translation

(708)

(708)

Total comprehensive income for the period

(708)

(1,415)

(2,123)

Transactions with owners, recorded directly in equity








Contributions by and distributions to owners








Share based payments

22

22

Treasury shares

(25)

(25)

Exercise of share options

5

5

Total contributions by and distributions to owners

2

2

Balance as at 30 June 2015

7,272

143

943

83

139

9,756

18,336

 



 

Consolidated Statement of Changes in Equity continued

 

For the year ended

Share Capital

Share Premium

Merger Reserve

Capital Redemp-tion Reserve

Trans-lation Reserve

Retained Earnings

Total

31 December 2015 (audited)

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance as at 1 January 2015

7,272

143

943

83

847

11,169

20,457

Total comprehensive income for the period








Profit in the period

373

373

Other comprehensive income








Foreign currency translation

(431)

(431)

Total comprehensive income for the period

(431)

373

(58)

Transactions with owners, recorded directly in equity








Contributions by and distributions to owners








Dividends paid

(340)

(340)

Share based payments

11

11

Treasury shares

(25)

(25)

Exercise of share options

11

11

Total contributions by and distributions to owners

(343)

(343)

Balance as at 31 December 2015

7,272

143

943

83

416

11,199

20,056



 

Consolidated Statement of Financial Position

 


Unaudited

Unaudited

Audited


30 June 2016

30 June    2015


£'000

£'000

£'000

Non-current assets




Property, plant and equipment

8,885

8,514

8,635

Goodwill

7,894

7,717

7,763

Other intangible assets

70

87

68

Interests in associates

84

62

Deferred tax assets

29

20

25


16,962

16,338

16,553

Current assets




Inventories

331

354

211

Trade and other receivables

13,781

12,243

12,299

Corporation tax receivable

775

629

977

Cash and cash equivalents

5,617

4,206

4,352


20,504

17,432

17,839

Total assets

37,466

33,770

34,392

Equity




Issued share capital

7,272

7,272

7,272

Share premium account

143

143

143

Merger reserve

943

943

943

Retained earnings

12,045

9,756

11,199

Translation reserve

1,242

139

416

Other reserves

83

83

83

Equity attributable to equity holders of the parent

21,728

18,336

20,056

Current liabilities




Trade and other payables

10,359

8,463

7,848

Bank overdrafts and loans

804

3,876

3,304

Corporation tax payable

446

497

738

Deferred income

307

145

113


11,916

12,981

12,003

Non-current liabilities




Bank loans

3,416

2,202

2,007

Deferred tax

406

251

326


3,822

2,453

2,333

Total liabilities

15,738

15,434

14,336

Total equity and liabilities

37,466

33,770

34,392





 

 



 

Consolidated Statement of Cash Flows

 


Unaudited

Unaudited

Audited


6 months to
30 June
2016

6 months to
30 June
2015

Year ended
31 December
2015


£'000

£'000

£'000

Cash flow from operating activities




Profit/(loss) before tax

973

(1,226)

614

Net finance costs

98

96

196

Operating profit/(loss)

1,071

(1,130)

810

(Increase)/decrease in trade receivables

(1,604)

58

149

Increase/(decrease) in trade payables

2,706

527

(127)

Depreciation and amortisation

352

371

730

Share of profit of associate

(13)

(3)

Share based payments

19

22

11

Tax payments

(303)

(432)

(583)

Net cash flow from operating activities

2,228

(584)

987

Cash flow from investing activities




Acquisition of subsidiary

(830)

(830)

Acquisition of investment in an associate

(59)

Proceeds from disposal of property, plant and equipment

48

Purchase of plant, property and equipment

(284)

(260)

(667)

Exercise of share options

5

11

Interest  received

1

1

2

Net cash flow from investing activities

(283)

(1,084)

(1,495)

Cash flows from financing activities




Dividends paid

(340)

Interest paid

(99)

(97)

(198)

Investment in own shares

(25)

(25)

Debt repayments

(516)

(377)

(779)

Net cash flow from financing activities

(615)

(499)

(1,342)

Net increase/(decrease) in cash and cash equivalents

1,330

(2,167)

(1,850)

Cash and cash equivalents at the start of the period

3,625

5,798

5,798

Exchange and other movements

662

(584)

(323)

Cash and cash equivalents at the end of the period

5,617

3,047

3,625

Cash and cash equivalent deposits held in non-UK based banks

3,370

3,801

4,136

Net bank deposit/(overdraft) with UK based banks

2,247

(754)

(511)


5,617

3,047

3,625





 



 

Notes to the Unaudited Interim Report

For the six months to 30 June 2016

 

1

Basis of preparation of Interim Financial Information & Statement of Compliance

 

SCISYS PLC (the "Company") is a UK company incorporated in England & Wales. The entities consolidated in the half year financial statements of the Company for the six months to 30 June 2016 comprise the Company and its subsidiaries (together referred to as the "Group"). The Group reports its financial results in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU").

 

This interim results announcement is prepared in accordance with the IFRS accounting policies expected to be applied by the Group at 31 December 2016.  These policies are unchanged from those set out by the Group in its consolidated financial statements for the year ended 31 December 2015 and available on the Group's website at www.scisys.co.uk. As permitted, this interim report has been prepared in accordance with the AIM rules and not in accordance with IAS 34 'Interim Financial Reporting' and is therefore not fully compliant with IFRS.  There are no new standards or interpretations endorsed by the EU during 2016 that impact on the financial results or presentation. 

 

The interim financial information for the six months ended 30 June 2016 is unaudited and does not include all of the information required to constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. It should therefore be read in conjunction with the audited financial statements for the year ended 31 December 2015. These published accounts have been reported on by the Group's auditors and have been delivered to the Registrar of Companies. The report of the auditors was (1) unqualified; (2) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (3) did not contain a statement under section 498 (2) or (3)  of the Companies Act 2006.

 

The preparation of these consolidated half year financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense.  Actual results may differ from these estimates.  In preparing these consolidated half year financial statements, the significant judgements made by management in applying the Group's accounting policies and the key areas of estimation were the same as those that applied to the consolidated financial statements for the year ended 31 December 2015.

 

The Interim Report was approved by the Directors on 21 September 2016.



2

Segmental analysis

 

The management structure and reporting of financial information to the chief operating decision maker (the Board) is the basis used to define operating segments.

 

The Group provides IT services to commercial and public sector organisations through the following four divisions:

                Space

                Enterprise Solutions & Defence (ESD)

                Media & Broadcast (M&B)

                Xibis

 

Divisional results, assets and liabilities represent items directly attributable to a division.  Unallocated expenses comprise central overheads and corporate expenses.  Assets and liabilities which are allocated to operating divisions comprise trade receivables, amounts recoverable on contracts, inventories and payments received on account.

 



 

 

2

Segmental analysis continued







Information about reportable segments








Space

ESD

M&B

Xibis

Total


External revenues

£'000

£'000

£'000

£'000

£'000


6 months ended 30 June 2016 (unaudited)







Professional fees revenue

7,831

6,836

3,416

311

18,394


Other revenue

1,770

1,762

87

48

3,667


External revenue for reportable segments

9,601

8,598

3,503

359

22,061


Other external revenue





162


Consolidated revenue





22,223


6 months ended 30 June 2015 (unaudited)







Professional fees revenue

6,046

3,653

3,044

353

13,096


Other revenue

1,822

1,156

84

45

3,107


External revenue for reportable segments

7,868

4,809

3,128

398

16,203


Other external revenue





321


Consolidated revenue





16,524


Year ended 31 December 2015 (audited)







Professional fees revenue

12,898

9,920

6,179

805

29,802


Other revenue

3,534

2,282

176

96

6,088


External revenue for reportable segments

16,432

12,202

6,355

901

35,890


Other external revenue





216


Consolidated revenue





36,106

 



 

 

2

Segmental analysis continued







Information about reportable segments








Space

ESD

M&B

Xibis

Total


Profit/(loss) before tax

£'000

£'000

£'000

£'000

£'000


6 months ended 30 June 2016 (unaudited)







Reportable segment contribution

1,885

2,526

958

5

5,374


Other contribution

32

1

33


Contribution

1,917

2,526

959

5

5,407


Central overheads





(4,336)


EBITA





1,071


Finance costs





(99)


Finance income





1


Profit before tax





973


6 months ended 30 June 2015 (unaudited)







Reportable segment contribution

1,266

(378)

946

(64)

1,770


Other contribution

(51)

2

(49)


Contribution

1,215

(378)

948

(64)

1,721


Central overheads





(2,851)


EBITA





(1,130)


Finance costs





(97)


Finance income





1


Loss before tax





(1,226)


Year ended 31 December 2015 (audited)







Reportable segment contribution

3,366

1,745

2,004

27

7,142


Other contribution

(83)

7

(76)


Contribution

3,283

1,745

2,011

27

7,066


Central overheads





(6,256)


EBITA





810


Finance costs





(198)


Finance income





2


Profit before tax





614








 



 

 

2

Segmental analysis continued







Information about reportable segments continued








Space

ESD

M&B

Xibis

Total


Group assets

£'000

£'000

£'000

£'000

£'000


As at 30 June 2016 (unaudited)







Reportable segment - non-current assets

3,424

3,380

1,090

7,894


Reportable segment - current assets

6,950

4,609

1,416

172

13,147



10,374

4,609

4,796

1,262

21,041


Other - non-current assets





9,068


Other - current assets





7,357


Total assets





37,466


As at 30 June 2015 (unaudited)







Reportable segment - non-current assets

3,248

3,380

1,089

7,717


Reportable segment - current assets

5,092

5,244

967

110

11,413



8,340

5,244

4,347

1,199

19,130


Other - non-current assets





8,621


Other - current assets





6,019


Total assets





33,770


As at 31 December 2015 (audited)







Reportable segment - non-current assets

3,293

3,380

1,090

7,763


Reportable segment - current assets

6,013

4,658

800

204

11,675



9,306

4,658

4,180

1,294

19,438


Other - non-current assets





8,790


Other - current assets





6,164


Total assets





34,392










Space

ESD

M&B

Xibis

Total


Group liabilities

£'000

£'000

£'000

£'000

£'000


As at 30 June 2016 (unaudited)







Reportable segment - current liabilities

699

966

418

22

2,105


Other - non-current liabilities





3,822


Other - current liabilities





9,811


Total liabilities





15,738


As at 30 June 2015 (unaudited)







Reportable segment - current liabilities

219

2,567

8

14

2,808


Other - non-current liabilities





2,453


Other - current liabilities





10,173


Total liabilities





15,434


As at 31 December 2015 (audited)







Reportable segment - current liabilities

278

1,315

29

22

1,644


Other - non-current liabilities





2,333


Other - current liabilities





10,359


Total liabilities





14,336

 



 

 

2

Segmental analysis continued






Information about reportable segments continued







UK

Rest of Europe

Other

Total


Geographical split

£'000

£'000

£'000

£'000


6 months ended 30 June 2016 (unaudited)






Revenue from external customers by location of customers

10,956

10,917

350

22,223


As at 30 June 2016






Non-current assets:






Intangible assets

1,090

6,874

7,964


Tangible assets

5,975

2,910

8,885


Interests in associates

84

84


Deferred tax assets

29

29


6 months ended 30 June 2015 (unaudited)






Revenue from external customers by location of customers

7,222

8,978

324

16,524


As at 30 June 2015






Non-current assets:






Intangible assets

1,090

6,714

7,804


Tangible assets

6,024

2,490

8,514


Deferred tax assets

20

20


Year ended 31 December 2015 (audited)






Revenue from external customers by location of customers

17,878

17,671

557

36,106


As at 31 December 2015






Non-current assets:






Intangible assets

1,090

6,741

7,831


Tangible assets

6,004

2,631

8,635


Interests in associates

62

62


Deferred tax assets

25

25

 

3

Taxation






Unaudited

Unaudited

Audited



6 months to
30 June
2016

6 months to 30 June      2015

Year ended 31 December 2015



£'000

£'000

£'000


Current tax charge

109

326

321


Deferred tax charge/(credit)

37

(137)

(80)


Total tax charge

146

189

241

 

 

 

 

4

 

 

The charge for taxation for the six months ended 30 June 2016 reflects an effective rate for the period consistent with the anticipated rate for the full year.

 

Impairment of goodwill

 

Goodwill is tested for impairment every half year based on management's estimation of the value in use of the cash generating units (CGUs) to which the goodwill has been allocated.  The value in use calculation is dependent upon management's estimate of future cashflows expected to arise from the CGU and a suitable discount rate.

 

Management has considered the estimates of cashflows and applicable discount rates and has concluded that no impairment is necessary at 30 June 2016.

 



 

 

5

Earnings/(loss) per share

 

The calculation of the Group basic and diluted earnings per ordinary share is based on the following data:

 



Unaudited

Unaudited

Audited



6 months to
30 June
2016

6 months to 30 June      2015

Year ended 31 December 2015



£'000

£'000

£'000


Profit/(loss) attributable to shareholders

827

(1,415)

373


Number of shares

'000

'000

'000


Basic weighted average number of shares

29,043

29,075

29,086


Diluted weighted average number of shares

31,016

30,828

31,082

 

The weighted average number of shares for the calculation of basic earnings per share excludes own shares held in treasury.

 

The weighted average number of shares for the calculation of diluted earnings per share includes own shares held in treasury together with EMI, CSOP and unapproved share options outstanding during the period.

 

6

Adjusted Earnings/(loss) per Share






Unaudited

Unaudited

Audited



6 months to
30 June
2016

6 months to 30 June      2015

Year ended 31 December 2015


Basic

2.9p

(4.8)p

1.3p


Diluted

2.7p

(4.5)p

1.2p

 


In order to present a measure of earnings per share which is more representative of the Group's underlying operating performance, earnings are adjusted to be net of the costs shown in the highlighted box on the face of the Income Statement.

 

The calculation of the Group adjusted basic and diluted earnings per ordinary share is based on the number of shares in Note 5 and the following earnings data:

 



Unaudited

Unaudited

Audited



6 months to
30 June
2016

6 months to 30 June      2015

Year ended 31 December 2015



£'000

£'000

£'000


Profit/(loss) attributable to shareholders

827

(1,415)

373







Adjusted for:





Share based payments

19

22

11


Adjusted earnings

846

(1,393)

384

 

 

 

 

The weighted average number of shares for the calculation of basic earnings per share excludes own shares held in treasury.

 

The weighted average number of shares for the calculation of diluted earnings per share includes own shares held in treasury together with EMI, CSOP and unapproved share options outstanding during the period.

 

7

Dividends

 

For year ending 31 December 2015, the Company paid a final dividend of 1.78 pence per share in July 2016.  The Board is recommending payment of an interim dividend for 2016 of 0.53 pence per share, to be paid on 10 November 2016 to shareholders on the register as at 14 October 2016.

 

Interim Report

 

The Interim Report will be posted to shareholders shortly and for those shareholders who have elected to receive communications electronically it will be available to view on the SCISYS website at www.scisys.co.uk.  Copies will also be available at SCISYS PLC's Registered Office at Methuen Park, Chippenham, Wiltshire, SN14 0GB.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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