Wednesday 24 April 2019

Benefits of re-domiciling to Dublin 'already being reflected' – Scisys

Galileo is a European satellite navigation system. Photo: ©GSA
Galileo is a European satellite navigation system. Photo: ©GSA
Ellie Donnelly

Ellie Donnelly

Dublin-listed software business Scisys has said the benefits of re-domiciling the group to Dublin are "already being reflected."

Scisys provides IT and software services across a number of sectors including media, space, and defence.

In November last year the company was admitted to trading in Dublin, becoming the first London-listed company to seek entry to the Irish Stock Exchange after the June 2016 Brexit vote.

Announcing its 2018 results today, group chairman Mike Love said that while the re-domicile process was a "complex and expensive" exercise, "the benefits are already being reflected in our record opening order book and our optimism across all divisions for 2019 and beyond."

"All of this is underpinned by healthy operational cash flows that have resulted in a substantial reduction in net debt and an uplift in the recommended final dividend," he added.

Scisys reported adjusted operating profit of £5.1m (€6m) in the 12 months to 31 December 2018, up 16pc on the prior year.

Revenues increased 10pc to £58.4m (€68m), while the group had a record order book of £98.6m.

In January this year the company secured a €5m contract with GMV in Spain for the continuation and further enhancement of three elements in the Galileo ground control segment. Galileo is Europe's own global navigation satellite system, providing a global positioning service which is under civilian control.

The group had put in place Brexit contingency plans, including the move to Ireland, in November to protect ongoing business in EU-funded European satellite navigation programmes, Galileo and EGNOS.

"I have little doubt that we would not be reporting such a positive picture in respect of revenue growth and future prospects had we not moved early and established a robust strategy to address the political uncertainties that were a serious threat to our space business," Mr Love said.

Online Editors

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