REG - SysGroup PLC - Half Year Results to 30 September 2025
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RNS Number : 9737J SysGroup PLC 03 December 2025
3 December 2025
SysGroup plc
("SysGroup" or the "Company" or the "Group")
Half year results for the six months ended 30 September 2025
SysGroup plc (AIM:SYS), the trusted partner for cloud, cybersecurity, and AI
enablement, delivering end to end solutions at the intersection of
cybersecurity and digital transformation for the UK mid-market, is pleased to
announce its unaudited half year results for the six months ended 30 September
2025 ("H1 FY26" or the "Period").
Strategic & Operational Highlights
· Strategic shift to a consultative, end-to-end Go-To-Market
("GTM") approach is delivering tangible results
· Cybersecurity represents a significant and fast-growing revenue
stream for the Group, today comprising 47% of revenue in the Period
· Secured a three-year Managed IT Services and technology refresh
contract with a major UK non-profit institution
· Managed IT Services revenue stabilised and is now well positioned
to return to growth after two years of decline
· AI is now our operational model, embedding tools, workflows, and
culture across the business
· Significant improvement in service quality and customer
satisfaction, supported by AI and operational changes
· AI delivering measurable ROI - service desk reduced from 36 to
22; throughput per engineer increased 17%
· Headcount reduction from 111 in FY23 to 80 by end of FY26,
delivered alongside strengthening technical capabilities and successful
integration of an acquisition
Financial Highlights
· Revenue £9.9m (H1 FY25: £10.2m); 10% growth in Q2 over Q1
· Net Managed IT Services down sell reduced from £1.7m in FY25 to
£0.3m run rate projected for FY26
· Managed IT Services including professional services increased to
92.3% of total revenue (H1 FY25: 86.3%)
· Gross margin 48.5% (H1 FY25: 49.6%) maintaining margin level
· Adjusted EBITDA(1 )of £0.2m (H1 FY25: £0.4m)
· Statutory loss before tax of £1.6m (H1 FY25: loss before tax of
£1.1m)
· Net cash(2)( )of £3.1m at 30 September 2025 (30 September 2024:
net cash(2) of £4.6m)
Heejae Chae, Executive Chair, commented:
"SysGroup has continued to make strong progress in transitioning to an
advisory-led, end-to-end Managed IT Service Provider ("MSP") delivering
tangible results. Our cybersecurity consulting capability, acquired last year,
is enabling earlier engagement and unlocking deeper cross-sell opportunities
reflected in increasing revenue pipeline. Service quality, customer
satisfaction and retention have improved significantly, and Managed IT
Services revenue has now stabilised and is positioned for a return to growth
in FY27.
AI has become central to how we operate. It is embedded across our workflows,
our data, and our culture, and is already delivering tangible results: higher
service quality, faster resolution, lower operating cost and a more productive
workforce. The efficiency gains and service improvements achieved in the past
year validate the value creation potential of an AI-enabled MSP. The MSP
sector itself is at a crossroads. Customer expectations are rising, technology
complexity is increasing, and traditional service models are under margin
pressure. This creates a once-in-a-generation opportunity to redefine what an
MSP can be. SysGroup is seizing that opportunity, building a scalable,
consultative, AI-powered platform capable of leading the transformation of our
sector.
Looking ahead, we expect a stronger H2 than H1, with improved EBITDA driven by
AI-enabled efficiency and productivity gains. Full-year performance is
expected to be in line with expectations. With a streamlined operating model,
stronger customer engagement and increasing demand for cybersecurity and
AI-readiness, SysGroup is well positioned for margin expansion and a return to
growth in FY27."
Notes
1. Adjusted EBITDA is earnings before interest, taxation,
depreciation, amortisation of intangible assets, impairment of intangibles,
exceptional items, share based payments and share scheme set up costs
2. Net cash / (debt) represents cash balances less bank loans and
lease liabilities
About us
SysGroup plc delivers a consultative, end-to-end GTM approach that blends
expert advisory services with AI-driven data solutions. Our integrated
capabilities, spanning connectivity, cloud hosting, data delivery, analytics,
governance and security, enabling customers to modernise and transform with
confidence.
The Group has offices in Edinburgh, London, Manchester and Newport.
For more information, visit http://www.sysgroup.com
For further information please contact:
SysGroup Plc Tel: 0333 101 9000
Heejae Chae, Executive Chair
Owen Philips, Chief Financial Officer
Zeus Capital (Nominated Adviser and Broker) Tel: 0161 831 1512
Jordan Warburton
James Whyman
Emma Burn
Nick Searle
Overview and Strategy
SysGroup has continued to make strong progress in its transition to an
advisory-led, end-to-end MSP, delivering tangible results. This advancement
has strengthened the Group's capability to deliver integrated solutions across
its portfolio, aligning service delivery, customer engagement, and commercial
strategy behind a unified GTM approach. As a result, SysGroup is better
positioned to deliver comprehensive value to clients throughout the entire
technology lifecycle, from initial advisory and solution design through to
deployment and ongoing Managed IT Services.
Following last year's acquisition of the business and assets of Crossword
Consulting Ltd ("Crossword"), the consulting offering continues to be a major
growth engine, expanding the advisory-led GTM approach and unlocking new
cross-selling opportunities across the broader customer base. By leading with
expertise and risk-focused guidance, the business is strengthening customer
trust and increasing wallet share, whilst also creating a more resilient
revenue model built on strategic engagements rather than transactional
services.
Cybersecurity overall (consulting and managed security solutions) now accounts
for 47% of total revenue, reflecting its importance as both a standalone
service line and a complementary capability that enhances the value of the
Group's managed services portfolio. This contribution underscores the
increasing market demand for robust security posture improvement and
continuous threat management.
During the period, the Group has secured a significant three-year Managed IT
Service contract and a major technology refresh project with a large UK
non-profit institution. This win highlights the strength of the Group's
proposition and demonstrates its ability to deliver modernisation programmes
that enhance performance, reliability, and cost efficiency for large-scale
clients.
Managed IT Services revenue has stabilised and is showing clear momentum
toward renewed growth following two consecutive years of decline. This
recovery is driven by improved customer retention, strengthened service
offerings, and the positive impact of the consultative MSP model. The business
is also seeing increased interest from both new and existing clients seeking
long-term partnerships to address evolving technology and security needs.
Service quality and customer satisfaction have improved significantly,
supported by ongoing operational enhancements and the integration of AI across
key workflows. These improvements are delivering faster resolution times, more
proactive support, and a consistently better customer experience. The Group's
focus on operational excellence continues to translate directly into stronger
client relationships and better commercial outcomes.
Commercial and service performance have both improved through the adoption of
AI-enabled sales, customer success management, and cross-sell tools. These
systems provide enhanced insights into customer needs, increase
lead-generation efficiency, and support more precise targeting of value-added
services, resulting in improved revenue conversion and deeper client
engagement.
The Group has developed an AI-enabled onboarding workflow that brings together
various tools to standardise the integration of both new and legacy
acquisition customers. This corrects historical inconsistencies, improves
service quality and creates a unified operating environment. At the centre of
this is our emerging AI Conductor, which acts as a learning flywheel,
continuously improving, as more customers are onboarded. Over time, this will
become a powerful integration engine for future acquisitions, enabling us to
absorb targets faster, at lower cost, and with materially less disruption.
AI has become central to how we operate. It is embedded across our workflows,
our data, and our culture, and is already delivering tangible results.
AI-enabled efficiencies and operational optimisation are supporting a leaner,
more productive workforce, delivered alongside an expansion of the Group's
technical capabilities and the successful absorption of an acquisition,
demonstrating the scalability of our new operating model. We are driving these
improvements through data-driven decision-making, comprehensive workflow
mapping and the integration of AI tools that enhance quality, efficiency and
organisational productivity. By harnessing rapid advances in AI and
aggregating the most effective tools into operational solutions, we are
building a modern, scalable platform designed to continuously improve service
and support future growth.
The MSP sector itself is at a crossroads. Customer expectations are rising,
technology complexity is increasing, and traditional service models are under
margin pressure. This creates a once-in-a-generation opportunity to redefine
what an MSP can be. SysGroup is seizing that opportunity, building a scalable,
consultative, AI-powered platform capable of leading the transformation of our
sector.
Results and Trading
In H1 FY26, the Group delivered revenue of £9.9m (H1 FY25: £10.2m) and
Adjusted EBITDA of £0.2m (H1 FY25: £0.4m). Managed IT services (including
professional services), performed strongly, increasing to £9.2m (H1 FY25:
£8.8m), up 4.6% year on year, supported by the successful integration of the
Crossword acquisition completed in H2 FY25. Value Added Resale ("VAR") revenue
declined to £0.8m (H1 FY25: £1.4m). This change is reflected in the revenue
mix for H1 FY26, with Managed IT Services representing 92.3% of total revenue
and VAR just 7.7% (H1 FY25: 86.3% / 13.7%).
Gross profit was £4.8m (H1 FY25: £5.0m), with only a modest reduction in
gross margin to 48.5% (H1 FY25: 49.6%). Adjusted operating expenses remained
flat at £4.6m (H1 FY25: £4.6m), despite the addition of nine employees from
the Crossword acquisition in H2 FY25, reflecting the efficiencies delivered
across both people and processes.
The consolidated income statement includes £0.3m of exceptional costs (H1
FY25: £0.4m), primarily relating to restructuring activities. The share-based
payments charge increased to £0.3m in H1 FY26 following the introduction of
new Group incentive plans in H2 FY25.
Net finance costs rose to £0.2m (H1 FY25: £0.0m), with the prior period
reflecting interest income earned on higher cash balances held after the
£10.6m (net of transaction costs) equity raise completed in June 2024.
The Group delivered a statutory loss before tax of £1.6m (H1 FY25: loss
before tax £1.1m).
The taxation credit of £0.4m (H1 FY25: credit of £0.3m) represents the
movement on deferred tax in the Period with no corporation tax charge arising
on the Group's trading position in H1 FY25.
Adjusted basic loss per share was (0.1)p (H1 FY25: 0.0p) and basic loss per
share was (1.4)p (H1 FY25: loss per share (1.2)p).
Cashflow and Net Debt
The Group's cash balance was £8.1m at 30 September 2025, compared with £8.7m
at 31 March 2025. The debt facility remained at £4.8m (31 March: £4.8m),
resulting in a net cash position of £3.1m (31 March 2025: £3.5m) after
deduction for lease liabilities and contingent consideration. On top of
available cash, the Group still retains £3.2m of unutilised banking
facility headroom.
Cash outflow from operations improved to £(0.2)m (H1 FY25: £(0.5)m). Net
cash outflows from investing activities were £0.0m, consistent with H1 FY25
(outflow of £(0.1)m).
Net cash outflows from financing activities totalled £(0.4)m, primarily
reflecting £0.3m of lease and RCF interest payments and £0.1m of deferred
consideration relating to the Crossword acquisition completed in H2 FY25. In
comparison, H1 FY25 saw a net cash inflow from financing activities of £8.5m,
driven by the £10.6m equity raise, partially offset by the £1.8m Truststream
earn-out payment and £0.3m of lease and RCF interest payments.
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
SIX MONTHS ENDED 30 SEPTEMBER 2025
Unaudited Unaudited Audited
year ended
six months to six months to
30-Sep-25 30-Sep-24 31-Mar-25
Notes £'000 £'000 £'000
Revenue 2 9,929 10,155 20,501
Cost of sales (5,112) (5,114) (10,491)
Gross profit 2 4,817 5,041 10,010
Operating expenses before depreciation, amortisation, exceptional items, share (4,603) (4,601) (9,065)
based payments and share scheme set up costs
Adjusted EBITDA 214 440 945
Depreciation (267) (277) (538)
Amortisation of intangible assets (791) (829) (1,599)
Exceptional items 4 (293) (397) (826)
Share based payments (272) - (197)
Share scheme set-up costs (22) - (174)
Administrative expenses (6,248) (6,104) (12,359)
Operating loss (1,431) (1,063) (2,349)
Net finance costs 5 (159) (31) (101)
Loss before taxation (1,590) (1,094) (2,450)
Taxation 427 276 616
Total comprehensive loss attributable (1,163) (818) (1,834)
to the equity holders of the company
Adjusted basic (loss)/earnings per share (pence) 3 (0.1)p (0.0)p 0.3p
Basic loss per share (pence) 3 (1.4)p (1.2)p (2.1)p
Diluted loss per share (pence) 3 (1.3)p (1.2)p (2. 1)p
All the results arise from continuing operations.
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2025
Unaudited Unaudited Audited
30-Sep-25 30-Sep-24 31-Mar-25
Notes £'000 £'000 £'000
Assets
Non-current assets
Goodwill 7 18,342 17,948 18,342
Intangible assets 7 3,319 4,133 4,047
Plant, property and equipment 1,191 1,605 1,441
Deferred taxation 141 - -
22,993 23,686 23,830
Current assets
Trade and other receivables 8 5,254 4,967 5,376
Cash and cash equivalents 8,122 9,930 8,740
13,376 14,897 14,116
Total assets 36,369 38,583 37,946
Equity and liabilities
Equity attributable to the equity shareholders of the parent
Called up share capital 11 855 855 855
Share premium 19,332 19,329 19,329
Treasury reserve (652) (984) (842)
Other reserve 3,756 3,300 3,481
Retained earnings (445) 2,038 908
22,846 24,538 23,731
Non-current liabilities
Lease liabilities 105 340 180
Contract liabilities 165 257 1,649
Provisions 118 148 295
Deferred taxation - 574 288
Bank loan 10 4,817 4,752 4,770
5,205 6,071 7,182
Current liabilities
Trade and other payables 9 4,874 4,271 4,674
Lease liabilities 141 207 189
Contract liabilities 3,303 3,496 2,075
Deferred consideration - - 95
8,318 7,974 7,033
Total equity and liabilities 36,369 38,583 37,946
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY
SIX MONTHS ENDED 30 SEPTEMBER 2025
Share capital Share premium Treasury reserve Other reserve Retained earnings Total
reserve
£'000 £'000 £'000 £'000 £'000 £'000
At 1 April 2024 515 9,080 (984) 3,300 2,856 14,767
Loss and total comprehensive expense for the period - - - - (818) (818)
Impact of prior year restatement - - - - - -
Purchase of own shares into Treasury - - - - - -
Issue of share capital 340 10,249 - - - 10,589
Share options charge - - - - - -
Reserves transfer on forfeiture of share options - - - - - -
At 30 September 2024 (unaudited) 855 19,329 (984) 3,300 2,038 24,538
Loss and total comprehensive expense for the period - - - - (1,016) (1,016)
Purchase of own shares into Treasury - - 142 - (142) -
Share options charge - - - 197 - 197
Reserves transfer on forfeiture of share options - - - 12 - 12
Deferred tax on share options - - - (28) 28 -
At 31 March 2025 855 19,329 (842) 3,481 908 23,731
Loss and total comprehensive expense for the period - - - - (1,163) (1,163)
Sale of shares held in Treasury - 3 190 - (190) 3
Share options charge - - - 272 - 272
Deferred tax on share options - - - 3 - 3
At 30 September 2025 (unaudited) 855 19,332 (652) 3,756 (445) 22,846
The following describes the nature and purpose of each reserve within equity:
Reserve Description and purpose
Share premium reserve Amount subscribed for share capital in excess of nominal values
Treasury reserve Company owned shares held for the purpose of settling the exercise of employee
share options
Other reserve Amount reserved for share-based payments to be released over the life of the
instruments and the equity element of convertible loans
Translation reserve Amount represents differences in relations to the consolidation of subsidiary
companies accounting for currencies other than the Group's functional currency
Retained earnings All other net gains and losses and transactions with owners (e.g. dividends)
not recognised elsewhere
CONSOLIDATED CONDENSED STATEMENT OF CASHFLOWS
Unaudited Unaudited Audited
six months to
year to
six months to
31-Mar-25
30-Sep-24
30-Sep-25
£'000 £'000 £'000
Cashflows used in operating activities
Loss after tax (1,163) (818) (1,834)
Adjustments for:
Depreciation and amortisation 1,058 1,106 2,097
Impairment of intangibles - - -
Finance costs 159 31 101
Movement in contingent consideration - - 80
Share based payments 272 43 197
(Decrease)/increase in provisions (30) - 140
Taxation credit (427) (276) (616)
Operating cashflows before movement in working capital (131) 86 165
(Increase)/decrease in trade and other receivables 121 (980) (1,321)
(Decrease)/increase in trade and other payables (202) 403 496
Cashflow from operations (212) (491) (660)
Taxation paid - 40 40
Net cash from operating activities (212) (451) (620)
Cashflows from investing activities
Payments to acquire property, plant & equipment (18) (36) (179)
Payments to acquire intangible assets (62) (254) (570)
Acquisition of subsidiary net of cash acquired - - (311)
Interest received on cash deposits 80 229 371
Net cash used in investing activities - (61) (689)
Payment of deferred/contingent consideration on acquisitions (95) (1,794) (1,862)
Sale of shares held in Treasury 3 - -
Proceeds from issue of share capital - 10,589 10,589
Capital/principal paid on lease liabilities (122) (57) (162)
Interest paid on loan facility (186) (228) (438)
Interest paid on lease liabilities (6) (11) (21)
Net cash used in financing activities (406) 8,499 8,106
Net (decrease)/increase in cash and cash equivalents (618) 7,987 6,797
Cash and cash equivalents at the beginning of the period/year 8,740 1,943 1,943
Cash and cash equivalents at the end of the period/year 8,122 9,930 8,740
SIX MONTHS ENDED 30 SEPTEMBER 2025
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
SIX MONTHS ENDED 30 SEPTEMBER 2025
1. ACCOUNTING POLICIES
The accounting policies used in the preparation of the unaudited consolidated
condensed financial information for the six months ended 30 September 2025 are
prepared in accordance with UK adopted International Financial Reporting
Standards ("IFRS") and are consistent with those that will be adopted in the
annual statutory financial statements for the year ended 31 March 2026.
Whilst the financial information included has been prepared in accordance with
the recognition and measurement criteria, in accordance with UK adopted
International Financial Reporting Standards, these consolidated condensed
financial statements do not contain sufficient information to comply with
IFRSs.
The financial information for the six-month period ended 30 September 2025 and
30 September 2024 does not constitute statutory accounts within the meaning of
Section 434(3) of the Companies Act 2006 and is unaudited. The comparative
financial information for the year ended 31 March 2025 included within this
report does not constitute the full statutory accounts for that period. The
statutory Annual Report and Financial Statements for 2025 have been filed with
the Registrar of Companies. The Independent Auditor's Report on that Annual
Report and Financial Statements for 2024 was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a statement
under 498(2) or 498(3) of the Companies Act 2006.
This Interim Report has been prepared solely to provide additional information
to shareholders to assess the Group's strategies and the potential for those
strategies to succeed. The Interim Report should not be relied on by any other
party or for any other purpose.
This unaudited interim financial information has been prepared in accordance
with the requirement of the AIM Rules for Companies and in accordance with
this basis of preparation.
Exceptional items
The Group presents as exceptional items on the face of the Statement of
Comprehensive Income those material items of income and expense which the
Directors consider, because of their size or nature and expected
non-recurrence, merit separate presentation to facilitate financial comparison
with prior periods and to assess trends in financial performance. Exceptional
items are included in administration expenses in the Consolidated Statement of
Comprehensive Income but excluded from Adjusted EBITDA (Note 4) as Management
believe they should be considered separately to gain an understanding of the
underlying profitability of the trading businesses.
Going concern
The Directors have prepared the financial statements on a going concern basis
which assumes that the Group and the Company will continue to meet liabilities
as they fall due.
The Group has an operating model with a high level of resilience with 92.3% of
revenue deriving from contracted Managed IT Services which are business
critical supplies to customers. The Group has a gross cash balance of £8.1m
and a net cash position of £3.1m at 30 September 2025. The Group has undrawn
RCF facilities available of £3.2m which can be used for working capital and
acquisitions, and an unutilised overdraft facility of £0.5m. The Group is
forecasting to generate healthy operational cashflows and achieve the bank
loan covenants for the full period of the forecast to March 2027.
The Directors have reviewed the Group's financial forecasts and reviewed
against the backdrop of the current UK economic outlook. The projected trading
forecasts and resultant cashflows, together with the confirmed loan and
overdraft facilities, taking account of reasonably possible changes in trading
performance, show that the Group can continue to operate within the current
facilities available to it.
The Directors therefore have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future and they continue to adopt the going concern basis of accounting in
preparing the financial statements.
2. SEGMENTAL REPORTING
The chief operating decision maker for the Group is the Board of Directors and
the Group reports in two segments:
· Managed IT Services - this segment provides all forms of managed
services to customers and includes professional services
· Value Added Resale ("VAR") - this segment is for sales of IT
hardware and licences procured from supplier partners
The monthly management accounts reported to the Board of Directors are
reviewed at a consolidated level and the Board review the results of the
operating segments at a revenue and gross profit level since the Group's
management and operational structure operate as unified Group functions. In
this respect, assets and liabilities are also not reviewed on a segmental
basis. All assets are located in the UK. All segments are continuing
operations and there are no transactions between segments, and all revenue is
earned from external customers. The business segments' gross profit is
reconciled to profit before taxation as per the consolidated income statement.
The Group's overheads are managed centrally by the Board and consequently
there is no reconciliation to profit before tax at a segmental level.
Unaudited Unaudited Audited
six months to six months to year to
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Revenue
Managed IT Services 9,168 8,766 17,696
Value Added Resale 761 1,389 2,805
9,929 10,155 20,501
Gross Profit
Managed IT Services 4,606 4,601 9,186
Value Added Resale 211 440 824
4,817 5,041 10,010
3. EARNINGS PER SHARE
Unaudited Unaudited Audited year ended
six months to six months to
30-Sep-25 30-Sep-24 31-Mar-25
Loss for the financial period attributable to shareholders (£1,163,399) (£818,061) (£1,833,724)
Adjusted (loss)/profit for the financial period (£124,076) £111,942 £233,786
Weighted number of equity shares in issue 85,515,091 66,966,623 85,515,091
Weighted number of equity shares for diluted calculation 89,037,439 68,886,531 89,037,439
Adjusted basic earnings per share (pence) (0.1p) 0.0p 0.3p
Basic loss per share (pence) (1.4p) (1.2p) (2.1p)
Diluted loss per share (pence) (1.3p) (1.2p) (2.1p)
3. EARNINGS PER SHARE (continued)
Unaudited Unaudited Audited year to
six months to six months to
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Loss after tax used for basic earnings per share (1,163) (818) (1,834)
Amortisation of intangible assets 791 829 1,559
Exceptional items 293 397 826
Share based payments 272 - 197
Share scheme set up costs 22 - 174
Tax adjustments (339) (296) (689)
Adjusted (loss) / profit used for adjusted earnings per share (124) 112 234
The tax adjustments relate to current and deferred tax on the amortisation of
intangible assets, exceptional items and share based payments.
4. EXCEPTIONAL ITEMS
Unaudited Unaudited Audited
six months to six months to year ended
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Integration and restructuring costs 293 238 420
Supplier charges in dispute - - 236
M&A projects - 116 90
Fair value adjustment of contingent consideration liability - 43 80
293 397 826
The integration and restructuring costs in the period relate to employee exit
costs and professional service fees incurred when restructuring the Group's
workforce. These costs are considered material and non-recurring and have
therefore been classified as exceptional.
The M&A projects expenditure relate to costs associated with the
evaluation of potential acquisition targets. This is considered material and
has therefore been classified as exceptional.
The supplier charges in dispute are subject to ongoing action for which the
Company is pursuing recovery. These costs are considered non-recurring and
exceptional and are therefore classified as exceptional.
All of the items above, based upon the judgment of the management team, meet
the definition of an exceptional item as defined within the Group's accounting
policies.
5. FINANCE COSTS
Unaudited Unaudited Audited
six months to six months to year to
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Interest payable on lease liabilities 6 11 (9)
Interest payable on bank loan 208 228 438
Arrangement fee amortisation on bank loan 18 14 36
Unwinding of discount on contingent consideration - - -
Other interest 7 6 7
Interest received on cash deposits (80) (228) (371)
159 31 101
6. ALTERNATIVE PERFORMANCE MEASURES
Reconciliation of operating profit to adjusted EBITDA Unaudited Unaudited Audited year to
six months to six months to
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Operating loss (1,431) (1,063) (2,349)
Depreciation 267 277 538
Amortisation of intangible assets 791 829 1,559
EBITDA (373) 43 (252)
Exceptional items 293 397 826
Impairment of intangibles - - -
Share based payments 294 - 371
Adjusted EBITDA 214 440 945
Net debt Unaudited Unaudited Audited
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Cash balances 8,122 9,930 8,740
Bank loans - non-current (4,817) (4,752) (4,770)
Net cash before lease liabilities 3,305 5,178 3,970
Lease liabilities - property (246) (547) (368)
Net cash 3,059 4,631 3,602
Contingent consideration - - 95
Net cash including contingent consideration 3,059 4,631 3,507
7. INTANGIBLE ASSETS
Systems development Customer relationships Goodwill Total
£'000 £'000 £'000 £'000
Cost
At 1 April 2024 1,121 12,709 17,948 31,778
Additions 571 328 394 1,294
Disposals - - - -
At 31 March 2025 (audited) 1,692 13,037 18,342 33,071
Additions 62 - - 62
At 30 September 2025 (unaudited) 1,754 13,037 18,342 33,133
Accumulated amortisation
At 1 April 2024 581 8,541 - 9,122
Charge for the year 226 1,333 - 1,559
Disposals - - - -
At 31 March 2025 (audited) 808 9,874 - 10,682
Charge for the year 207 584 - 791
At 30 September 2025 (unaudited) 1,015 10,458 - 11,473
Net book value
At 31 March 2025 (audited) 884 3,163 18,342 22,390
At 30 September 2025 (unaudited) 739 2,580 18,342 21,661
8. TRADE AND OTHER RECEIVABLES
Unaudited Unaudited Audited
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Trade receivables 2,071 1,981 2,938
Other receivables 3,183 2,986 2,438
5,254 4,967 5,376
9. TRADE AND OTHER PAYABLES
Unaudited Unaudited Audited
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Trade payables 2,911 2,070 2,666
Other taxes and social security 724 660 977
Accruals 1,239 1,541 1,031
4,874 4,271 4,674
10. BANK LOAN
Unaudited Unaudited Audited
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Bank loan net of arrangement fee 4,817 4,752 4,770
The Group has an £8.0m revolving credit facility with Santander of which
£4.8m is drawn down at 30 September 2025. The banking facility has a term of
five years to April 2027, an interest rate of Base Rate +3.25% margin on drawn
funds and covenants that are tested quarterly relating to total net debt to
adjusted EBITDA leverage and minimum liquidity.
11. SHARE CAPITAL
Equity share capital Number £'000
At 30 September and 31 March 2025 85,515,091 855
Issue of share capital - -
At 30 September 2025 85,515,091 855
12. AVAILABILITY OF INTERIM REPORT
This report is available on the Company's website at http://www.sysgroup.com.
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