REG - SysGroup PLC - Trading Update and Notice of Results

SysGroupAnnouncement

17/04/2023 07:00

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RNS Number : 3434W  SysGroup PLC  17 April 2023

17 April 2023

 

SysGroup plc

 

("SysGroup" or the "Group")

 

Trading Update and

Notice of Results

 

Strong performance delivers results in line with expectations

 

SysGroup plc (AIM:SYS), the multi award-winning technology solutions
provider, is pleased to provide the following trading update for the year
ended 31 March 2023 ("FY23").

 

Group trading performance

 

Following a strong close to the year the Group is pleased to report trading
for the FY23 period in line with expectations. Despite the difficult economic
backdrop, Group revenues grew 47% to £21.6m (FY22: £14.7m) and Adjusted
EBITDA(1) increased to £3.33m (FY22: £2.82m). The growth in Group revenues
was achieved through a combination of 6% organic growth supplemented by the
successful acquisitions of Truststream and Orchard (the "Acquisitions"), both
in April 2022.

 

SysGroup's strong track record of cash generation has continued, with gross
cash of £4.18m at the year end (FY22: £4.13m), achieved after payment of
£5.8m in aggregate in respect of the initial consideration payable for the
Acquisitions. As expected, following the Acquisitions and successful
refinancing, the Group has a net debt position of £1.32m excluding contingent
consideration (FY22: net cash £2.99m). The balance sheet therefore remains
very healthy with an Adjusted EBITDA(1) to net debt ratio of 0.4x.

 

Brand refresh and revised go to market strategy

 

During the period the Group continued to invest in future growth, refreshing
its brand and simplifying its go to market strategy. The technology
transformation journey is more complex than ever before and businesses need to
rely on trusted advisors to help them navigate the complexities. In order to
succeed, the message needs to be simple, so we have shifted our approach to
talk specifically to the c-suite of mid-market businesses which represents the
biggest opportunity for SysGroup.

 

Outlook

 

Momentum from the year end has continued into FY24. Although very early in the
new financial year, our refreshed brand and messaging has been received well
by both existing customers and new prospects. Whilst the economic backdrop
remains challenging, we have adapted accordingly and continue to build
pipeline. The last few years has highlighted the fact that technology is
essential to both protecting and driving growth in all businesses. With our
new focus on talking to customers about productivity, resilience, risk and
sustainability, we are well placed to continue to execute our growth strategy
and take advantage of the opportunities available to us.

 

Notice of results

 

SysGroup expects to publish its full year results for the period ended 31
March 2023 on 26 June 2023.

 

Adam Binks, Chief Executive Officer, commented:

 

"I am pleased to deliver solid growth in a difficult economic environment.
Both acquisitions have performed well and we have a very clearly defined
market strategy which is resonating within our target market. Given the
investment we have made in the brand and the simplification of our messaging,
I am confident that FY24 will deliver further progress and that we have the
right offering to meet the complex needs of the market."

 

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

 Liberum (Nomad and Broker)                Tel: 0203 100 2000

 Edward Mansfield

 Kate Bannatyne

 Antonia Brown
 Alma PR (Financial PR)

 Josh Royston                              Tel: 07780 901 979

 Matthew Young

 

About SysGroup

SysGroup is a multi-award-winning technology solutions provider that creates
value through technology transformation. Our mission is to supercharge the UK
mid-market and we have built our business around our customers' challenges,
enabling them to drive productivity, increase their resilience, mitigate risk
and become more sustainable. Our bespoke solutions are at the forefront of
technology innovation, combining world-class, green technology infrastructure
with cutting-edge expertise and best-in-breed partners.

 

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

 

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

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