In June, SCISYS revealed that it had been hit by cost overruns at a fixedprice development project. Also, as a result of the weak euro and the subsequent consensus forecast cuts, SCISYS said it might be in breach of its UK banking covenants. Following negotiations with the group’s UK banks, the covenant issue has now been favourably resolved. This is partly due to the group’s strong balance sheet, which includes the freehold property on its Chippenham HQ. Consequently, this leaves the shares looking attractive to investors, with the stock trading below book value.


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Banking covenants position is resolved
In June, SCISYS revealed that it had been hit by cost overruns at a fixedprice development project. Also, as a result of the weak euro and the subsequent consensus forecast cuts, SCISYS said it might be in breach of its UK banking covenants. Following negotiations with the group’s UK banks, the covenant issue has now been favourably resolved. This is partly due to the group’s strong balance sheet, which includes the freehold property on its Chippenham HQ. Consequently, this leaves the shares looking attractive to investors, with the stock trading below book value.