Sysgroup Share Discussion Threads

[rivaldo] 08/6/2022 13:07

Good to see today's RNS notifying that SYS are doing an Investor Meet presentation on 21st June:



This is the day after the prelims to 31st March.

A reminder that the £13.11 m/cap at 26.5p reflects rather cheaply (imo!) against a forecast 3.3p EPS to March '22 and a £3m cash pile.

The new forecast for the current year will include the two post year-end acquisitions, which are both immediately earnings-enhancing.

[matthew palmer] 07/5/2022 14:40

Anyone on TECHINVEST, I am wanting to form a group of similar minded people to discuss its views etc and information.

Click my name and send a message.

[rivaldo] 28/4/2022 09:08

Cheers boadicea, good to see you here. Always a quandary as to whether to mention stocks on other threads, but the similarity of SYS to SWG seemed obvious.

[boadicea] 27/4/2022 13:22

Thanks, rivaldo, for your o/t comment on SWG thread. I had entirely missed SYS in my stock scan due to its inclusion as a media stock rather than computer/software.
It does look interesting and have added it to my watch list - probably best not to delay action for too long.
Very thinly traded, but so are many others atm, so may need to take several smaller bites if entering with the new tax year's ISA contribs.

[rivaldo] 27/4/2022 06:23

Looks like an excellent second acquisition in the last three weeks.

Orchard Computers made £2.1m revenues and £0.3m EBITDA last year, so at a £1m purchase price in cash it's pretty cheap - plus Orchard has 56% recurring revenues and will be immediately earrnings-enhancing.

[masurenguy] 27/4/2022 06:10

Synergetic acquisition.

SysGroup has agreed to acquire 100% of the issued share capital of Orchard, on a cash-free debt-free basis for a consideration of £1.0m in cash. The vendors of Orchard, Ian Terry and Chris Patten, will remain with SysGroup for a minimum period of three months to assist with the handover of customer relationships and integration into the Group.

Adam Binks, Chief Executive Officer, commented: "I am thrilled to be announcing our second acquisition of the financial year. Orchard is a well-established, well-respected business with a loyal customer base in the South West of England and I am delighted that we have been able to bring this business into the Group. "Our enhanced presence in the region will add even more value for the combined customer base and will create a raft of opportunity for all of our team members, including the addition of our 20 new colleagues from Orchard."

[hastings] 27/4/2022 06:06

Bit like waiting for a bus!Another acquisition announced, small but immediately earning enhancing.

[tiltonboy] 25/4/2022 11:42

Thanks Martin.

[rivaldo] 25/4/2022 07:52

Excellent write-up Martin, thanks.

Given 3.3p historic EPS - and that during the pandemic - plus a new earnings-enhancing cyber-security acquisition, with further acquisitions on the agenda, it's easy to see SYS catching people's eyes at some point soon.

Here's a direct link:

[jolomo] 24/4/2022 10:29

Martin, thanks for the write-up & for touching on the staffing side. Fingers crossed for better times ahead!

[hastings] 24/4/2022 10:09

Write up for interest as promised.Https://martinflitton1.wixsite.com/privatepunter/post/sysgroup-shares-look-good-value-g4m-headwinds-24-04-22

[jolomo] 21/4/2022 10:28

Cheers Martin. Quite right, too nice a day to waste.

[hastings] 21/4/2022 09:50

Had a very worthwhile catch up with the CEO this morning (put back from yesterday)Suffice to say, I'll add a write up tomorrow as I'm off to enjoy the sun for the rest of today!

[tiltonboy] 19/4/2022 14:53

Could you also ask at what level they would consider using equity to fund acquisitions.

How are they looking to promote the business in terms of bringing new investors in?

Many thanks

[hastings] 19/4/2022 14:52

No problem, I'll ask that my friend.

[jolomo] 19/4/2022 14:48

Martin. If you get the chance it would be great if Adam could give some colour around wage inflation, staff turnover & the number of vacant positions. Hope you are well. Scott.

[hastings] 19/4/2022 14:28

Have a call lined up with the CEO tomorrow morning, so will add a write up afterwards for interest.

[hedgehog 100] 19/4/2022 13:05

AISHAH 31 Aug '18 - 10:48 - 28 of 305 0 1 0
"Added first tranche yesterday having been on watchlist since Techinvest made them a new buy in July. A full write-up in August ended with "Continue to buy"."

AISHAH 31 Aug '18 - 14:51 - 31 of 305 0 0 0
"Techinvest are quite positive on SYS. I see from your thread that you are already invested here, so I'm in good company. Shore Cap fcst are for 2.8p(2019) followed by 3.3p(2020). As Techinvest says, SYS are well placed to be a market consolidator for small managed service providers, so acquisitions will boost prospects here imo."


It will be interesting to see if SYS is tipped in the press, following recent good news, and being at such a lowly price.

Techinvest for example has previously been very positive on the company.

[rivaldo] 19/4/2022 12:37

Nice turnaround from the MM's initial mistaken markdown. Zeus should be publishing their maiden research as SYS's new broker, but perhaps they'll wait until the prelims are out in June.

[rivaldo] 19/4/2022 06:27

Agreed, an encouraging update, nicely in line despite the deliberate reduction in lower margin sales and the general economic climate - which SYS now states is beginning to improve.

So SYS are likely to have achieved around 3.3p historic EPS to 31st March - a P/E of just 8.8 for an IT services and cyber security company.

Plus SYS have a £3m cash pile, well ahead of the broker's £2.7m forecast and backing up a substantial percentage of the entire m/cap.

[weatherman] 19/4/2022 06:17

Nice cash pile to help pay for the recent acquisition, and generating cash for the earnout.

[hastings] 19/4/2022 06:08

Happy with the update, in-line with expectations despite revenue reduction. Net cash ahead of expectations too and a positive sounding forward look.The shares remain cheap in my view, but hoping to hear more in a catch up with the CEO.I strongly suspect that some of the lost revenue was of low margin and therefore not of concern.

[rivaldo] 14/4/2022 13:54

Good to see the share price rise 1p after just a £2k buy :o))

Presumably not much stock around.

[hedgehog 100] 12/4/2022 17:14

Thanks Titltonboy.

WINS makes these changes for a reason though.

They were probably more cautious of selling after the big rise, which hasn't really materialised.


"Why choose SysGroup?

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Best of Breed Technology; Scalable Network Design; Human Ingenuity.

As one of the UK’s fastest-growing managed IT and cloud hosting providers, SysGroup specialises in providing bespoke technical architecture. We continue to innovate and lead with solutions, rather than products, bringing our reputation for security, reliability, performance and delivery to customers across the UK.

With an agnostic approach to technology, we’ll create a customised solution that matches your specific needs. We pride ourselves on intuitive understanding and consultative approach to working with clients. We get to know you and your business and see how you work before we suggest solutions, so you end up with a proposal that better suits your requirements.

SysGroup continues to lead the market in shifting our capacity to hyper-scale deployment technologies. We use cloud technology to improve efficiency and performance, accommodating increased demand for both back and front-end resources. ..."