Sysgroup Share Discussion Threads

[tiltonboy] 29/10/2021 09:53

Thanks hastings

[hastings] 29/10/2021 09:50

Shore note this morning sees Sys hitting their forecasts for full year with EBITDA of £2.8m. After the retrace, the shares trade on a PER of circa 8, so despite the obvious difficult climate remains a hold for me and I'll no doubt add further if the offer moves further.Interestingly, the note highlights others such as iomart which I already flagged up, along with Redcentric as all being impacted.I'll add more when I speak with the CEO.

[cockerhoop] 29/10/2021 09:35

Aiden does seem to have a special talent in acquiring growing businesses and turning them ex-growth :-)

[jolomo] 29/10/2021 09:16

COVID aside, if you tout yourself as a growth stock, make what may turn out to be expensive acquisitions & fail to even maintain top-line you are going to get sold off. Valuation looks very cheap but perhaps deservedly until we see some proof of delivery.

[tiltonboy] 29/10/2021 09:05

Heading for an all-time low. I think that's a bit harsh!

[jolomo] 29/10/2021 08:55

As always I look forward to any insight you can bring.

[hastings] 29/10/2021 08:42

Morning Jolomo, I don't disagree with you and I'm hoping to speak with Adam Binks as soon as possible.

[jolomo] 29/10/2021 08:39

Morning Martin. I agree with what you say, but I think it's important for their credibility that we hear a bit more on what they are going to do short-term to get some top-line growth rather than unrealistic targets of £100m market cap. Clearly can't use equity at this price to make any acquisitions.

[tiltonboy] 29/10/2021 08:32

The share price has been the most accurate gauge.

I just wonder how "inline" management expectations compare with broker forecasts. I would think there is a gulf.

hastings take on the update would be inciteful...if he is still around.

[hastings] 29/10/2021 08:29

I think it's worth remembering that as part of the amalgamation of various parts of the previously acquired operations they have exited business of low value or earnings. That said, the general climate hasn't been good as can be seen by others such as iomart. Cash position remains positive and one would expect the situation to improve going forward.

[jolomo] 29/10/2021 08:28

Another disappointing update. Acknowledge that COVID will still be an issue but is that the only reason for pretty poor figures? Maybe a bit more openness on what isn't working & a bit less 'dreaming' of £100m market cap needed.

[tiltonboy] 29/10/2021 08:19

Remaining in the bottom drawer for somewhat longer!

[masurenguy] 29/10/2021 08:01

A somewhat disappointing update, although the reduction in overhead and the improved cash position are positives. Plenty still to do going forward !

Trading Update and Notice of Results

H1 adjusted EBITDA in line with expectations

SysGroup is pleased to provide a trading update for the half year ended 30 September 2021, together with a notice of results.

Group trading performance

The Group expects to report revenue for H1 of GBP7.58m (H1 FY21: GBP9.01m), 15.8% lower than H1 FY21. As noted at the time of the Group's FY21 final results, customers have continued to defer and curtail expenditure decisions as a result of the pandemic and our sales teams have continued to face restrictions in their ability to have in-person interactions with customers and prospects to develop the sales pipeline. Operationally, performance has been robust. SysGroup continues to benefit from lower overheads as a result of integration synergies delivered from past acquisitions and the Group has diligently managed its operations whilst continuing to invest as required in the business.

Accordingly, the Group expects adjusted EBITDA to be GBP1.34m for the first half which is in line with management's expectations (H1 FY21: GBP1.41m). The Group ended the half year period with a very healthy net cash position of GBP1.96m (H1 FY21: net cash of GBP1.17m).

Notice of Results

SysGroup expects to publish its half year results for the six months ended 30 September 2021 on 22 November 2021. Adam Binks, Chief Executive of SysGroup commented:"Whilst the economic uncertainty of last year has continued through H1 and has affected customer decision making, I am pleased to report that our adjusted EBITDA performance is in line with our expectations. Our team's dedication to delivering for our customers has been excellent and I thank them for their hard work during the first half of the year. The long-term outlook for our business and market remains very positive and we are continuing to see an increasing number of companies seeking to move towards Cloud rather than on-premise solutions. We expect IT projects and investment decisions, as a business critical agenda item, to recover strongly once there is more certainty around the economic environment and the on-going impact of COVID-19. The Board remains confident that adjusted EBITDA for the current financial year will be in line with its expectations."

[tiltonboy] 26/10/2021 16:25

Heading towards the 12 month low, and absolutely no support.

[weatherman] 20/10/2021 13:22

We had a trading update end of October last year.

[weatherman] 03/9/2021 18:07

At 36.5p, and 51.8m shares in issue, their mkt cap is £18.9m, with £1.9m net cash (higher if exclude lease liability). EBITA is £2.9m. Their EV/EBITA ratio is 5.9 - looking cheap to me - RCN EV/EBITA is about 8.
4/5ths of revenue is recurring.

[masurenguy] 03/9/2021 16:49

Should get an H1 trading update towards the end of next month to see what progress they have made.

[weatherman] 25/8/2021 18:55

Interview with SysGroup CTO.

[masurenguy] 19/8/2021 09:55

Anyone got the faintest clue on the content of post #211?

[capitol2] 19/8/2021 09:16

50.000 +20.000 share buyers return again Today

[rp19] 27/7/2021 21:53

Generally confident outlook in the results but I think a specific comment on current year trading would have been useful.

[masurenguy] 27/7/2021 10:57

Shareprice has just drifted down by nearly 20% since results announced 5 weeks ago. Many small caps have seen a similar price erosion over that period - probably just summer doldrums in many cases.