I'm sure we are gearing up for a big acquisition. Hopefully earning accretive |
New NED board member, with expertise in M&A. "His expertise in building technology companies through innovation and operational excellence, as well as his proficiency in acquiring and integrating technology companies, will greatly benefit SysGroup." |
 Posting the rns so that it appears in future thread searches.
3 June 2024 SysGroup plc
("SysGroup", the "Company", or the "Group")
Board Changes
SysGroup plc (AIM:SYS), the technology partner for delivery and management of cloud, data and security to power Artificial Intelligence ("AI") and Machine Learning ("ML") transformation, is delighted to announce the appointment of Davin Cushman as Non-Executive Director, effective 10 June 2024.
Davin has over 25 years of experience within the technology industry having started his career in 1996 with enterprise application pioneer Trilogy. He served as CEO at Ignite Technologies, an enterprise software company, where he completed over 40 mergers and acquisitions during his decade-long tenure. Subsequently, he founded Brightrose Ventures to advise, acquire and operate software companies, with a later $100 million commitment from Brentwood Associates for software acquisitions. Davin has an undergraduate degree in Politics from Princeton University and a MBA from Kellogg at Northwestern University.
Heejae Chae, Executive Chairman of SysGroup, commented,
"We are delighted to welcome Davin Cushman to the Board as a Non-Executive Director. Davin has extensive experience in the technology sector and was part of hyper growth at category defining companies. His expertise in building technology companies through innovation and operational excellence, as well as his proficiency in acquiring and integrating technology companies, will greatly benefit SysGroup."
In accordance with Schedule 2(g) of the AIM rules, Davin Wallace Cushman (aged 50) holds or has held the following directorships in the last 5 years:
Current Directorships
Brightrose Ventures Limited
Cushman Management Company
BA SMG Mountain Holdings LLC
Previous Directorships
Service Management Group Limited
Services Management Group G.K.
Bsquare Corporation
ObjectStore Inc
Davin holds no shares in the Company.
There is no further information on Davin required to be disclosed under Schedule Two, paragraph (g) (i)-(viii) of the AIM Rules for Companies.
Following the appointment of Davin Cushman, the Board will comprise Heejae Chae (Executive Chairman); Owen Phillips (Chief Financial Officer); and Mike Fletcher, Mark Reilly, Paul Edwards and Davin Cushman (Non-Executive Directors). |
Another decent looking board appointment at the NED level, a further signalling of the growth ambitions ahead! |
From the respected Techmarketview:
"Wednesday 29 May 2024
SysGroup partner with Softcat to expand AI/ML services
SysGroupMid-market managed services provider and reseller SysGroup has announced a partnership with infrastructure product and services firm Softcat, focusing on AI and Machine Learning (ML) opportunities.
SoftcatData analytics and ML is one of SysGroup’s five key areas (alongside data storage and management, data connectivity, data engineering, and IT security) which the company has segmented its technology into in order to support its end-to-end Managed IT Services business strategy (see Mixed results for SysGroup in H1 - managed services up, but overall revenue down). The company declared last year that the overarching theme of its strategy was to build an integrated data solution platform that “positions SysGroup as the go-to end-to-end data solution provider for SMBs embarking on their AI/ML journey”.
As my colleague, Kate Hanaghan, commented in the context of Softcat’s FY23 results last October (see Softcat progresses through FY23), Softcat had been refining its partner ecosystem in order to deliver a broad range of services to end customers (some delivered by the in-house team; some via partners). Today’s tie-up will bolster that overall partner provision with additional AI / ML expertise (beyond Softcat’s existing relationship with Microsoft around the pilot pilot), and also provide SysGroup with a key go-to-market route for its AI/ML offering too." |
Somebody paid 2p over the offer to buy 30k earlier....and somebody has just sold 30k 1.6 below the bid.
Hope its not the same person |
Great partnership agreement announced. |
The Chairman and major holder appears to be really driving the business. If he comes anywhere near replicating his success at SCAPA, there will be a lot of happy investors. |
If the departure terms were in his employment contract, would there have been an alternative? |
Perhaps he was encouraged to volunteer to leave - hence pay off. |
The only negative I found in the recent trading update was this. Does anyone know why the old CEO got a £1.5 million pay off when he told the company he wanted to leave? Cash balances have been utilised in satisfaction of: (i) £0.9m in the Truststream Year 1 earn-out and (ii) £1.5m in settlement of the former CEO's contractual departure terms including the Company's purchase of 2,076,394 ordinary SysGroup shares (now held in treasury) following the exercise of share options and immediate sale of those shares. |
Close to the level that the Chairman first bought in. I do wonder if someone has got wind of a raise! |
Somebody is keen to exit! |
Agreed rivaldo. I believe the Chair and major holder with some good connections could well replicate the success he had at Scapa. |
Encouraging overall in terms of:
- "the second largest contract in SysGroup's history, totalling £2.2m of revenue over three years" won this month (couldn't this have been RNS'd or RNSNON'd separately?)
- the tone of today's RNS which is extremely positive and bullish as regards the potential in AI/ML
- the growth in revenues from £10.96m in H1'23 to £11.74m in H2'23
But H1'23 £1.57m EBITDA compares to £0.43m EBITDA in H2 due to "significant investment in technology and people to support our strategic growth".
The opportunity is huge in SYS's sectors, and SYS look good value on a £14.93m m/cap. Let's hope the investment last year pays off quickly in terms of a return to H1's EBITDA and above (can't see any forecasts from Zeus on Research Tree yet). |
The £2.3m contract is their 2nd largest ever. |
Hi mark
Hope you're keeping well.
He stopped harassing me , so i leave him in peace.
And yes clco has always been pile of sh~te with it's huge debt.
Apologies for the off topic. |
Hey ZICO, you should take a look at your pal beeksy on CLCL this morning. |
£2.2m contract:
At the end of April, we closed the second largest contract in SysGroup's history, totalling £2.2m of revenue over three years. |
Heejae Chae, Executive Chair, commented:
"Our strategy, execution and leadership has been totally transformed over the past nine months since I joined the Group. We have set a strategic vision to become the premier end-to-end data solution provider for small and medium sized businesses ("SMB") embarking on their AI/ML journey. We will provide further details on our strategy and progress in the year-end results announcement in July 2024.
In a short period of time, we have developed new capabilities in AI/ML, data management and cloud which are crucial in today's data driven world. Our progress is recognised by our partners, evidenced by achieving AWS Select Partner Status, approval for Zscaler Global MSSP Program, and working with one of UK's largest Valued Added Reseller to be their Machine Learning Partner of choice. Our customers, more importantly, are embracing our transformation and new capabilities as demonstrated by the double-digit organic growth following years of stagnation.
We believe that we are ideally positioned to participate in the most consequential development in technology. Evidence is becoming indisputable that adoption of AI is no longer an option for businesses. However, the challenge for SMBs to embark on the AI/data journey is significant. Our vision is to be the partner of choice for the UK business in their transformation." |
Group Trading Performance
Group revenues increased 5% to £22.7m (FY23: £21.6m), driven by a significant 14% increase in the second half of the year (compared to the same period FY23), which offset a 3% decline in the first half. We continue to maintain the momentum into the new financial year across all our technology offerings. At the end of April, we closed the second largest contract in SysGroup's history, totalling £2.2m of revenue over three years, providing cyber security managed services to a leading challenger bank. Our AI/ML proposition continues to gain traction amongst both new and existing customers, with a growing pipeline of opportunities.
Following significant investment in technology and people to support our strategic growth, the Group expects to report Adjusted EBITDA1 of approximately £2m.
The Group finished the year with a gross cash balance of £1.9m (FY23: £4.2m) and a net debt2 position of £3.4m (FY23: net debt2 of £1.3m), excluding contingent consideration of £1.8m (FY23: £2.7m). Cash balances have been utilised in satisfaction of: (i) £0.9m in the Truststream Year 1 earn-out and (ii) £1.5m in settlement of the former CEO's contractual departure terms including the Company's purchase of 2,076,394 ordinary SysGroup shares (now held in treasury) following the exercise of share options and immediate sale of those shares. |
Year End Trading Update
"Total Transformation of Strategy, Execution and Leadership"
SysGroup plc (AIM:SYS), a leading technology partner specialising in the delivery and management of cloud, data and security services to power Artificial Intelligence ("AI") and Machine Learning ("ML") transformation, is pleased to provide a trading update for the year ended 31 March 2024. |
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