The shares have increased by a third in value over the past year

SCISYS (SSY:AIM) 187.5p

Gain to date: 34.4%

Original entry point: Buy at 139.5p, 19 April 2018


IT systems and services supplier SciSys (SSY:AIM) should be applauded for the sensible way it has handled ongoing Brexit uncertainty.

With substantial business across Europe, not least in the media industry and with the European Space Agency (ESA), its decision to re-domicile to Ireland while keeping its UK offices and, importantly, its UK stock market listing, seems to have pleased all parties.

It also led to the release of a log-jam of ESA contracts that had been on the backburner, handing the company and its investors a welcome New Year boost. Full year 2018 results were typically reliable and robust without being spectacular, which is just what shareholders want.

It’s been two strong years for the share price since we pointed out the company’s more aggressive growth ambitions in April 2017. Since then the
stock has rallied 70% from 110.5p yet it remains far from expensive.

SciSys is currently trading on 13.4 times 2019 earnings forecasts. If we assume a modest rating enhancement to a forward PE ratio of 15 by year end, it would imply a 228p share price based on existing forecasts.


SHARES SAYS: Keep buying.

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