Gain to date: 14% Orig­i­nal en­try point: By at 110.5p, 6 April 2017

SIX MONTHS AGO in­vestors were be­ing spooked by re­ports that Brexit could scup­per Euro­pean Space Agency (ESA) work for SciSys (SSY:AIM).

How wrong that now looks in the face of the re­cent €18m deal to sup­ply ground sta­tion con­trol and com­mu­ni­ca­tions tech­nol­ogy on an ESA satel­lites mis­sion.

Fi­nally the mar­ket ap­pears to be wak­ing up to the pos­i­tive re-rat­ing po­ten­tial here. For ex­am­ple, at the cur­rent 124.5p the com­pany trades on an en­ter­prise value to earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion (EBITDA) of 7.5-times, about half the gov­ern­ment soft­ware peer group av­er­age, ac­cord­ing to an­a­lysts.

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