Investment summary

On 20 January SciSys released an in-line trading update in spite of the challenging backdrop. The group has recently announced several contracts that help underpin our forecasts and its role in upgrading the British Army’s Warrior AFV is potentially significant. SciSys continues to seek ways to reuse its software and leverage its domain knowledge. It has a partnership with Google, offering geospatial technologies to corporates, and is developing a low-cost automotive power solution with partners including Tata and Raytheon. We are maintaining our EBIT forecasts and our long-term margin target continues to support a valuation north of 80p.

Last updated on 01/02/2012

Industry outlook

SciSys is specialist provider of high-value IT solutions with a focus on four vertical markets (space, government & defence, environment and media & broadcast). Its fifth division provides application support across these markets. H1 growth was led by the space and government & defence divisions. SciSys now has a more balanced portfolio, with many of the group’s public sector contracts in key priority areas where there is less scope for discretionary spending cuts and nearly half of group revenues are outside of the UK.

Last updated on 09/12/2011