REG - SysGroup PLC - Trading Update

SysGroupAnnouncement

26/10/2022 07:00

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RNS Number : 0847E  SysGroup PLC  26 October 2022

26 October 2022

 

SysGroup plc

("SysGroup" or the "Group")

 

Trading Update

Notice of Results

 

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 six month period ended 30 September 2022 (H1 FY23), together with a
notice of results.

 

Group trading performance

 

The Board is pleased to report a strong trading performance, despite the
challenging macro-economic environment. As previously announced, the Group
made the successful acquisitions of Truststream and Orchard earlier this year
and the integration of both are progressing well. The Board is pleased with
the performance of both companies to date and is already seeing early signs of
the potential benefits of the cross-sell opportunities.

 

As such, the Group expects to report revenue for H1 FY23 of £11.32m (H1 FY22:
£7.58m) and Adjusted EBITDA(1) of £1.67m (H1 FY22: £1.34m), both of which
are in line with current market expectations. Further, the Group also finished
the half year with a healthy gross cash balance of £4.22m (H1 FY22: £3.47m)
and a net debt position of £1.92m (H1 FY22: net cash of £1.96m) excluding
contingent consideration of £3.08m relating to the acquisition of
Truststream.

 

Outlook

 

The Group has maintained its trading momentum with its sales pipeline
continuing to grow and the investment made in FY22 in to our new Manchester
sales and marketing hub is starting to materialise. Whilst there is still
progress to be made, the team is now at full complement and is making good
progress.  Our customers continue to rely on SysGroup as a critical supplier
of managed IT services and our teams are as committed as ever to deliver the
Group's services.

 

The need for managed IT services remains prevalent and as businesses
increasingly seek to invest in technology to increase efficiencies and improve
their margins, SysGroup is ideally placed to capitalise on this growing market
opportunity.

 

The Board is fully committed to SysGroup's business model and remains
confident that the Group will meet market expectations for the full financial
year.

 

Notice of results

 

SysGroup expects to publish its half year results for the six month period
ended 30 September 2022 on 21 November 2022.

 

Adam Binks, Chief Executive Officer, commented:

 

"I am pleased with the progress that we have made in H1 FY23. To have
delivered a revenue and Adjusted EBITDA(1) performance in line with current
market expectations, despite the numerous macro-economic challenges, is
testament to the resilience of our strategy and hard work of our team.

 

The benefits of the recent Truststream and Orchard acquisitions are already
clear and the enlarged customer base is fully engaged in understanding what
additional support we can provide from our enhanced service offering.

I remain grateful for the continued commitment of our teams, who continue to
drive the Group forward and support our customers at an increasingly important
time."

 

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

 

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

 

 

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