RNS Number:2897L
CODASciSys PLC
20 May 2003


                                CODASciSys plc

                              TRADING STATEMENT


CODASciSys plc (stock code: CSY) - the Chippenham based specialist supplier of
IT services and CODA financial solutions - is issuing this update on current
trading ahead of its AGM tomorrow.

At the time of reporting the preliminary results for 2002 in March, the Company
indicated that for 2003 it would plan for  modest growth consistent with the
immediate past trends.  As it approaches the half-year point, the Directors have
concluded that results for the full year are likely to be below current market
expectations.  However, the  impact upon the projected Earnings per Share should
be partially mitigated by a lower tax charge than current market estimates. The
Group has continued to enjoy strong operating cash flows.

Market conditions continue to be difficult and trading patterns across the
CODASciSys Group remain varied with good progress within the CODA business (61%
of Group turnover in 2002) but mixed results within the SciSys Division (39% of
Group turnover in 2002).

Trading within the SciSys Division is producing a varied picture. The Space &
Defence business is performing well, and the Commerce & Industry business
results are in line with expectations.  However the Government & Utilities
business is suffering from a significant shortfall in order intake and  as a
result  has been loss making. While it had been anticipated that the pattern of
order intake would improve in the second half, it is now considered that the
level of that improvement will be below our previous expectations, and in the
current market conditions it is not possible to predict when this trend is
likely to reverse.

As a consequence, the Directors are taking action to ensure the cost base is
brought into line with the underlying level of revenues projected within the
Government & Utilities business. This action primarily relates to head count
reductions of approximately 30 people (3.5% of the Group total), at a one-off
charge of approximately  #1.0m,  giving rise to annualised cost savings of
around #1.5m.

The CODA Division continues to perform well and is in line with expectations:

  * The number of new name accounts won to date this year by both CODA and
    SquareSum is particularly pleasing.
  * The SquareSum business, which was acquired at the beginning of the year,
    has been successfully integrated in the period, leading to the achievement
    of the cost savings anticipated at the time of the acquisition.
  * The value of deferred licences as at 30 June 2003 is not expected to be
    materially different to the position as at 31 December 2002.

Whilst it is acknowledged that market conditions remain uncertain, the Directors
consider that following the above action, the Government & Utilities business
should return to profit and, going forward, the Group as a whole should achieve
growth consistent with recent trends.




FOR FURTHER INFORMATION, PLEASE CONTACT :

Mike Love, Group CEO, CODASciSys                                  01249-466466

Richard Anning, Group Marketing Manager, CODASciSys               01249-466466

Barrie Newton, Rowan Dartington                                   0117-933-0011

Richard Darby / Isabel Petre, Buchanan Communications             0207-466-5000




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