26 January 2011 – trading statement

A trading update from recent tip SciSys justifies our enthusiasm for the share. The company performed better than expected in the second half of 2010 despite difficult market conditions. As a result it expects to report adjusted EBITA for the year ahead of market expectations. Net cash was £4.8m at the end of 2010. Earnings are likely to benefit from a low effective corporation tax rate on an ongoing basis and the progressive dividend policy looks set to continue. We retain our BUY rating ahead of results on 29 March.