Scisys says €20m of contracts mean Irish move already paying off
Dublin-listed Scisys has said the benefits of its re-domicile from the UK to Ireland ahead of Brexit are "already being reflected".
Scisys provides IT and software services to sectors including space and defence. As a UK company it risked being cut off from EU contracts as a result of Brexit, including ongoing business in EU-funded European satellite navigation programmes, Galileo and Egnos.
A Brexit contingency plan that kicked in last November included a move to be listed in Ireland. The group became the first London-listed firm to seek entry to the Irish Stock Exchange after the June 2016 Brexit vote. It incurred an exceptional charge of £700,000 (€820,700) as part of the move.
Yesterday Scisys said subsequent Galileo contract wins by its Space division were approaching €20m in value, and that adding this to an earlier €3.9m Egnos order "fully justified" the establishment of a new Irish group holding company.
"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," said chairman Mike Love.
Announcing 2018 results yesterday, Mr Love added 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.
Shares were up 0.5pc yesterday in Dublin, after the group reported adjusted operating profit of £5.1m (€6m) in the 12 months to December 31, 2018, up 16pc on the prior year.