REG - SysGroup PLC - Trading Update and Notice of Results

SysGroupAnnouncement

19/04/2022 07:00

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RNS Number : 4924I  SysGroup PLC  19 April 2022

19 April 2022

 

SysGroup plc

("SysGroup" or the "Group")

 

Trading Update

Notice of Results

 

Full year Adjusted EBITDA in line with expectations

 

SysGroup plc (AIM:SYS), the multi award-winning managed IT services, cyber
security and cloud hosting provider, is pleased to provide a trading update
for the period ended 31 March 2022, together with a notice of results.

 

Group trading performance

 

Despite the external challenges faced throughout our industry over the last 2
years, the Group expects to report Adjusted EBITDA(1) of £2.8m for the period
ended 31 March 2022 which is in line with market expectations.

 

This is despite the expected decline in revenue compared to the prior period,
as customers continued to defer spending on enhanced IT projects. The Adjusted
EBITDA performance reflects the underlying strength of our business with
strong operational management and the full year benefit of acquisition
synergies, supported further by the quality of our managed services revenues
and sustainable margins.

 

Further, it is pleasing to note that the Group has maintained its track record
of solid cash generation, ending the financial year with £3.0m of net cash
which is ahead of market expectation.

 

Outlook

 

Encouragingly, during the latter part of H2 FY22, we have started to see
enhanced trading conditions with both new and existing clients. Whilst not yet
at pre-pandemic levels, customers are once again starting to feel confident to
commit to spending on enhancements to their essential IT services. Coupled
with the acquisition of Truststream, which has added further capabilities to
our managed security service offering, the Group is well positioned to deepen
it existing client relationships and is looking forward to the future.

 

Notice of results

 

SysGroup expects to publish its full year results for the period ended 31
March 2022 on 20 June 2022.

 

Adam Binks, Chief Executive Officer, commented:

 

"This is a very robust performance given the headwinds faced for a prolonged
period of time. Our business has proved to be resilient which reflects both
the quality of our offering and the core nature of the services that we
provide.

 

The strong EBITDA performance and cash generation demonstrate the operational
strength and financial discipline of the Group and investments in prior
periods mean that we are ready to scale as conditions improve. We will do so
both organically and through further earnings enhancing M&A, as evidenced
by the post year end acquisition of Truststream Security Solutions.

 

We have started to see the first green shoots of recovery in customer spending
and look forward to the future with confidence."

 

Notes

1.  Adjusted EBITDA is earnings before interest, taxation, depreciation,
amortisation of intangible assets, exceptional items and share based payments.

 

 

 For further information please contact:

 SysGroup plc                              Tel: 0151 559 1777

 Adam Binks, Chief Executive Officer

 Martin Audcent, Chief Financial Officer

 Zeus (Nominated Adviser and Broker)       Tel: 0161 831 1512

 Dan Bate

 James Edis
 Alma PR (Financial PR)

 Josh Royston                              Tel: 07780 901 979

 Matthew Young

 

 

About SysGroup

SysGroup is a leading provider of managed IT services, cloud hosting, cyber
security and expert IT consultancy. The Group delivers solutions that enable
clients to benefit from industry leading technologies and delivers managed
solutions with security, compliance and governance from the core. SysGroup
focuses on a customer's strategic and operational requirements - enabling
clients to free up resources, grow their core business and avoid the
distractions and complexity of managing IT services.

 

The Group has offices in Edinburgh, Liverpool, London, Manchester, Newport and
Telford.

 

For more information, visit http://www.sysgroup.com

 

 

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