Specilaist software developer SciSys today signalled confidence in the future by raising its annual dividend 10% on the back of a rise in pre-tax profits from £1.57m to £2m in 2011.
The company, which has a major base in Bristol and its head office in Chippenham, develops information and communications technology services, e-business and advanced technology solutions serving the environment and utilities sectors. Customers and partners range from the European Space Agency to Cable & Wireless Worldwide, the BBC and the Ministry of Defence.
Chief executive David Jones said 2011 had been another successful year with professional fees up 11%. Total revenues dropped slightly (from £43.5m to £42.8m) as the lower margin revenue associated with project subcontracts and licences dropped. But, he added, operating margins rose to 6% demonstrating real progress in achieving the SciSys strategic objective of achieving operating margins of 7% by the end of 2013.
He said: "I believe we have delivered a very creditable performance for the year in the face of very challenging market conditions and economic uncertainty. SciSys has delivered an adjusted operating profit before tax of £2.4m, a 14% improvement on 2010.
"Significantly, cash inflows have remained healthy and the company's balance sheet has further strengthened such that borrowings secured to fund the acquisition of the company's head office freehold premises in May 2011 for £5m were balanced by cash deposits at the year end."
Chairman Dr Mike Love, who stepped back to the role of non-executive chairman during 2011, said: "Despite all the challenges faced during 2011, both economic and political, I am very pleased that the group was able to produce such good results.
"Our opening order book, some of which stretches out to 2013 and beyond, is strong, and by balancing opportunities for new business across five diverse markets we are in a reasonable position to counteract the risk of any further downturn in any particular market sub-sectors."
He said that going into 2012 SciSys has a wider and more diversified client base adding that the group, which has a German arm, derives 50% of its revenues from outside the UK. It also has foreign currency hedging arrangements in place to guard against any unexpected rapid appreciation of the pound against the euro.
He said: "We remain confident that the group will make good progress during the year in line with our stated strategies, although a slower start to 2012 compared with 2011 leads us to remain cautious about what may lie ahead for the remainder of the year."
