SysGroup PLC Trading Update and Notice of Results (3434W)

TIDMSYS

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 GBP21.6m (FY22: GBP14.7m) and Adjusted EBITDA (1) increased to GBP3.33m (FY22: GBP2.82m). 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 GBP4.18m at the year end (FY22: GBP4.13m), achieved after payment of GBP5.8m 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 GBP1.32m excluding contingent consideration (FY22: net cash GBP2.99m). 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: [phone] 
 Adam Binks, Chief Executive Officer 
 Martin Audcent, Chief Financial Officer 
 
  Liberum (Nomad and Broker)                Tel: [phone] 
  Edward Mansfield 
  Kate Bannatyne 
  Antonia Brown 
 
 Alma PR (Financial PR)                     Tel: [phone] 
 Josh Royston 
 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

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April 17, 2023 02:00 ET (06:00 GMT)