Scisys hails 'impressive' start to the year

Software company Scisys hailed an "impressive start" to 2018 on Thursday as it pointed to a record opening order book, notable new contracts and strong cash flow.

Scisys said that in addition to the landmark €3.9m order announced in April with Airbus Defence & Space, its space division has further extended its footprint in the EU's Galileo satellite navigation programme.

Meanwhile, since securing an enhanced service contact for the BBC in February, the company’s media and broadcast division has added six new German broadcasters to its customer base for rollout of its weConnect gateway functionality to exchange media content within the ARD group of public broadcasters.

The company's enterprise solutions and defence division has extended its support agreements with Vodafone to 2020 and Capgemini to 2021, for the 111 non-emergency NHS number and the Environment Agency applications, respectively. In addition, the division continues to expand its activities providing on-site consultancy teams to key customers in both the commercial and defence/security arenas, increasing the number of staff deployed by 95% in the last 12 months.

Scisys said cash generation remains strong, with net down to £1.9m from by the end of May from a closing position of £5.9m in 2017.

"Cash flow has been improved further by a shift in the mix of business away from traditional fixed-price contracts with deferred invoicing milestones towards monthly-billed, on-site contract work in ESD and large space assignments that attract advance payments.

"In view of the group's buoyant order book, an impressive pipeline of new business prospects and continued strong cash conversion, the directors are confident that Scisys well placed to deliver year-on-year progress during 2018 and beyond."

At 1550 BST, the shares were up 12% to 159.50p.