REG - SysGroup PLC - Trading Update & Notice of Results

SysGroupAnnouncement

01/11/2023 07:15

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RNS Number : 9461R  SysGroup PLC  01 November 2023

1 November 2023

 

SysGroup plc

("SysGroup" or the "Group")

AIM: SYS

 

Trading Update & Notice of Results

 

SysGroup plc (AIM:SYS), the managed IT services, cyber security and cloud
hosting provider, is today providing an update on the Group's performance for
the six months ended 30 September 2023 ("H1 FY24" or the "Period").

 

Group trading performance

 

The Group has delivered a steady trading performance for the Period delivering
growth in high value Managed IT services revenue, which has been offset by
lower Value-Added Resale ("VAR") sales.  Overall, this has resulted in
slightly lower Group revenue when compared to the same period in the prior
year. The Group is expecting to report revenue for H1 FY24 of £10.96m (H1
FY23: £11.32m) and Adjusted EBITDA(1) of £1.56m (H1 FY23: £1.68m).

 

At the end of the Period the Group's gross cash was £1.98m (H1 FY23: £4.22m)
following payments to satisfy the Truststream year one earn-out, acquisition
of 2,076,394 ordinary SysGroup shares (now held in Treasury) and the
settlement of the former CEO's contractual terms. Net debt(2) at the end of
the Period was £3.43m (H1 FY23: £1.92m) and excludes future contingent
consideration of £1.84m (H1 FY23: £2.93m).

 

Organisational Changes

 

SysGroup plc is pleased to announce the following appointments to strengthen
its senior management team as it focuses on delivering an end-to-end data
solution.

 

·      Heinrich Koorts - Chief Revenue Officer (formerly Softcat plc)

·      Ross Humphrey - Chief AI Officer (formerly JP Morgan/Rebura)

·      Paul Sullivan - Chief Technology Officer (SysGroup/Truststream)

·      Wendy Baker - General Counsel and Company Secretary (formerly
Scapa Group plc)

Heejae Chae, Executive Chair, commented:

 

"During the past six months, we have assessed the market opportunities and our
competitive position.  We recognise that most companies today are grappling
with how to leverage Artificial Intelligence (AI). Whilst the potential
benefits are compelling, it is not clear to many as to what these benefits are
and how they can achieve them. Companies are looking for a partner who can
help them build a compelling business case for AI as well as help them achieve
data maturity in a cost-efficient way as they modernise their existing
platform.  We believe the most effective way to deliver such a result is to
provide an end-to-end data solution including data engineering, networking,
storage, analytics and, of course, security.

 

Leveraging our existing capabilities, we will invest in our operational
capability and put the building blocks in place to become the partner of
choice in the AI adoption journey.  We look forward to expanding further on
our strategy when we publish our half year results."

 

Notice of results

 

SysGroup expects to publish its half year results for the six-month period
ended 30 September 2023 on 27 November 2023.

 

Notes

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

2.        Net debt represents cash balances less bank loans and lease
liabilities.

 

 For further information please contact:

 SysGroup plc                              Tel: 0151 559 1777

 Heejae Chae, Executive Chairman

 Martin Audcent, Chief Financial Officer

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

 Jordan Warburton

 Nick Cowles

 Alex Fowler

 Nick Searle

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 Bristol, Edinburgh, Liverpool, London, Manchester and Newport.

 

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

 

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