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SYS

Sysgroup Plc

35.50
0.00 (0.0%)
Share Name Share Symbol Market Type Share ISIN Share Description
Sysgroup Plc LSE:SYS London Ordinary Share GB00BYT18182 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 35.50 7,000 08:00:00
Bid Price Offer Price High Price Low Price Open Price
34.00 37.00 35.50 35.50 35.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Computer Related Svcs, Nec 14.75 0.45 0.90 35.50 17.35
Last Trade Time Trade Type Trade Size Trade Price Currency
14:36:16 O 2,000 34.65 GBX

Sysgroup (SYS) Latest News

Sysgroup (SYS) Discussions and Chat

Sysgroup Forums and Chat

Date Time Title Posts
26/5/202313:30SysGroup plc....a potential serious winner in the making?452
05/6/201515:29Technical Index Trading & System 5
21/7/201114:02SYSTEMS1
07/3/201109:59System C Healthcare145
23/6/200923:00SYSTEM C Thread57

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Sysgroup (SYS) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
13:36:1734.652,000693.00O
13:26:0234.655,0001,732.50O

Sysgroup (SYS) Top Chat Posts

Top Posts
Posted at 26/5/2023 13:30 by apotheki
Taken from another BB....

illiswilgig

Machinations afoot? At SysGroup (LON:SYS) (I hold) the micro-cap buy-and-build managed IT business based in Liverpool.

Heejae Chae (apparently ex CEO of SCAPA and Volex) recently purchased 14% of the shares.

Today its announced that the CEO of 9 years, Adam Binks, will step down following the annoucement of results on 26th June and the founding Chairman, Michael Edelson (noted inestor) will step back to non-executive director and retire at the next agm.

Heejae Chae will be appointed executive chairman with immediate effect after the announcement of results on 26th June.

I wonder what that all this means?

Sysgroup has made some good acquisitions at small scale which have integrated well. By contrast larger £266m EV peer Redcentric (LON:RCN) seems to have made some quite disastrous acquisitions recently but remains quite highly valued at 41x current year earnings and 21x 12m forecast, 2.8x book and 10x EV/EBITDA. In this market, that seems strange to me?

Sysgroup appears undervalued:

£19.2m EV

9.5x current year earnings

0.8x book (admittedly almost all acquisition intangibles)

7.5x EV/EBITDA

With negligible debt and a tenth the size of its peer there is scope to continue funding small regional acquisitions to continue its buy-and-build.

But organic growth has been poor to pick up after the pandemic. Probably it's been more of a struggle than management expected and probably their market has become more competitive under the difficult economic environment.

Could just be that the founder and longterm CEO are happy to hand on for the next stage of growth? Presumably Chae sees some potential? Is that good for shareholders or bad?Anyone know anything about Chae? Good or bad?

It's a small holding for me. I shall watch with interest as it has demonstrated an ability execute buy and build efficiently under difficult circumstances which is a rare skill. How much of that was down to the soon to be ex-CEO and Chairman remains to be seen? Alternative views are welcomed - it's not a share in which I have a very strong conviction,

cheers

Mark

Posted at 26/5/2023 08:04 by tiltonboy
Certainly an interesting move, but a positive one on balance. AB can't be faulted for the job he has done, but perhaps didn't have enough of a following to get the share price up and deal flow going
Posted at 24/4/2023 15:59 by bamboo2
rivaldo, Chart pattern concurs with your share price and has a confirmed bottom with a target price min 42p

Additionally, price is rising above rising 50/100/200 smas

Posted at 19/4/2023 11:06 by rivaldo
Yep, confirmation that he did indeed buy that 1m shares going through yesterday - he now has 6.8m shares worth £2.1m here.

Quite a vote of confidence:

Https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Holdings-in-Company/90801318

Posted at 17/4/2023 08:49 by rivaldo
We know that SYS management's strategy is to buy and build. They've already made two acquisitions in the last year.

Given that net debt is reducing from an already low level, and that those acquisitions are now successfully bedded in, I doubt we'll have to wait too long for another acquisition assuming they can find one at the right price.

In the current environment I was encouraged by the 6% organic growth outlined today, particularly given the travails of others in the sector as I noted above. If SYS can achieve this in a time of relative conservatism in spending, then when expenditure on cyber etc increases - as it inevitably will - SYS should do rather well.

Posted at 03/8/2022 11:45 by rivaldo
Techinvest have published their new issue, so it should be OK to copy their update on SYS from the July issue:

"SysGroup 26.5p (SYS; AIM)

SysGroup has reported that disruption linked to the pandemic resulted in a 19% drop in revenue to £14.75m for the year ended March 31. Recurring revenue increased to 87% compared to 79% of total revenue in fiscal 2021. Adjusted EBITDA was 3% lower at £2.82m and adjusted pre-tax profit was £2.04m compared to £2.09m last time. Adjusted basic earnings per share were 3% higher at 3.6p, giving an historic P/E of 7.2. Cash generation from operations was down 16% to £2.47m, although net cash at the period end was 59% higher at £2.99m (5.7p per share).

Despite the pandemic challenges, SysGroup continued to make good operational progress. The group’s project to deliver a unified platform of systems was completed, delivering benefits across all parts of the business. Multi-tenanted cloud platform, SysCloud 2.0, went fully live recently and is reported to be delivering higher efficiency with greater capacity from less physical space. Office rationalisation was completed with a refurbishment programme in Newport and closure of the Telford office. Post period-end, two acquisitions have been added, Trustream Security Solutions and Independent Network Solutions. Trustream is a provider of cyber security solutions and gives the group a presence in Scotland from which to grow. Independent Network Solutions, which trades as Orchard Computers, further enhances the group’s presence in the Southwest region and complements its South Wales based operations. Both acquisitions are expected to be immediately earnings enhancing.

Despite the short-term disruption caused by the pandemic and wider economic uncertainty, the market opportunity for SysGroup continues to grow. Success for the business in the competitive and highly fragmented IT managed services domain will be greatly aided by building scale. In that respect, the acquisitions of Truststream and Orchard look well-timed, adding customers, technical expertise, and geographical reach to the enlarged group. SysGroup’s ambition to be a consolidator in the UK market is supported by the success of the business in lifting recurring revenue close to the 90% mark.

Cash generation also remains strong, contributing to a robust balance sheet that provides ample scope for further acquisitions. The pandemic has greatly enhanced the demand for digital transformation and managed IT services with businesses needing reliable technology solutions to ensure the continued smooth running of their operations in an increasingly hybrid working environment. That provides an encouraging background for SysGroup’s ambitious expansion aims, but management now needs to prove that recent operational improvements and strengthening of sales teams can restore top line growth. Failure in that regard could make SysGroup itself an acquisition target for a larger IT managed services operator. Hold."

Posted at 07/4/2022 14:41 by hedgehog 100
RP,

Results in the software-ITservices sector as a whole have tended to be weaker since the pandemic hit, but SYS seems have fared better than many.

And indeed SYS's interim basic eps actually increased, as did its interim statutory profit before tax.

The fall in revenue meanwhile is consistent with SYS's gradual exiting of lower-margin business from prior acquisitions.

This seems to be paying dividends, with SYS last Autumn forecasting the same profit as expectations, but on lower revenues, which means that margins are increasing.

This is very important, because improved margins are a sign of competitive strength.


SYS's CEO Adam Binks said last October:

“Our plan is to take the business to a £100m market cap. It only takes two or three strategic acquisitions.”

Well, they've just made one, which means just one or two more to go!


22/11/2021 07:00 UK Regulatory (RNS & others) SysGroup PLC Half-year Report LSE:SYS Sysgroup Plc

" ... Financial highlights

-- Revenue of GBP7.58m (H1 FY21: GBP9.01m)
-- Recurring Managed IT Services revenue represented 86% of total revenue (H1 FY21: 83%)
-- Adjusted EBITDA (1) of GBP1.34m (H1 FY21: GBP1.41m), in line with management's expectations
-- Adjusted profit before tax (2) of GBP0.96m (H1 FY21: GBP0.99m)
-- Statutory profit before tax of GBP0.25m (H1 FY21: GBP0.13m)
-- Adjusted basic EPS (3) of 1.5p (H1 FY21: 1.7p)
-- Basic earnings per share of 0.3p (H1 FY21: 0.2p)
-- Cashflow from operations of GBP1.14m (H1 FY21: GBP1.68m)
-- Cash of GBP3.47m at 30 September 2021 (30 September 2020: GBP3.02m)
-- Net cash (4) at 30 September 2021 of GBP1.96m (30 September 2020: GBP1.17m) ..."

https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Half-year-Report/86620081

Posted at 06/4/2022 17:23 by hedgehog 100
"Tech update 4th April 2022

Russian cyber-attack threat: How to protect your business

As the devastating Russian invasion of Ukraine continues, the risk of a cyber-attack hangs over every business here in the UK.

It’s thought Russia could launch online attacks in response to sanctions and the Government has been warning us about the risk for some time. ..."

HTTP://www.geekingitsimple.co.uk/2022/04/04/tech-update-4th-april-2022/


With the threat of Russian cyber-attacks now looming larger than ever, then SYS's acquisition of a cyber-security firm to enhance its offering and reach looks very timely.


05/04/2022 07:00 UK Regulatory (RNS & others) SysGroup PLC Acquisition of Truststream Security Solutions Ltd LSE:SYS Sysgroup Plc

" ... Adam Binks, Chief Executive Officer, commented:

"I am delighted to announce the acquisition of Truststream. The addition of Truststream to the Group further supports our stated strategy to become the leading provider of managed IT services to the UK mid-market. The business strongly complements our existing portfolio of services and has high levels of recurring revenue.

In addition, cyber security remains a key priority for businesses of all sizes as threats become both more prevalent and more harmful. Our end-to-end offering means that we can help companies navigate the forever evolving technological landscape and provide best of breed solutions backed by the highest quality of ongoing security, monitoring and support.

Our investment in the Group's systems and infrastructure over the last few years means that we have the platform in place to be able to scale SysGroup and will continue to identify further complimentary acquisition opportunities in line with our stated strategy.

I'm excited to welcome the Truststream team and look forward to working with them all as part of the enlarged Group." ..."

https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Acquisition-of-Truststream-Security-S/87754564


Especially as the pandemic has depressed valuations in the sector, which makes this the perfect time to pick up some bargains, and the Truststream acquisition certainly looks like one.

And it lends credence to SYS's stated £100M. market cap. ambition:

"October 21st, 2021 by Bethany Whelan
Creating a ‘super-brand’: SysGroup targets £100m market cap
CEO and CFO explain how transformational deals and organic growth are key to rapidly scaling a technology company
... “Our plan is to take the business to a £100m market cap,” says CEO Adam Binks. “It only takes two or three strategic acquisitions.” ..."
HTTP://www.sysgroup.com/about-us/newsroom/press-releases/creating-a-super-brand

Posted at 06/4/2022 15:20 by hedgehog 100
There's a few further potential share price catalysts for SYS in the very near term:

1. We should receive a year end trading update from SYS for the year to 31st. March soon (it was on 19th. April last year).
- And the signs are bulllish.

2. Potential directors share buying on the day of the update, as occurred 2 years ago:

21/04/2020 06:00 UK Regulatory (RNS & others) SysGroup PLC Directors Share Purchase LSE:SYS Sysgroup Plc
https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Directors-Share-Purchase/82268596

3. New research note from newly-appointed Zeus Capital, including upgraded forecasts, & Zeus's share price target for SYS.

Posted at 02/3/2022 17:17 by hedgehog 100
Tiltonboy,

SYS's financial year ends at the end of this month, and we can expect a trading update soon after that year end, in April.

I don't think that it would be good practice for directors to buy in so relatively soon before that, even if it's not an official close period.

Rather, the time to buy would be straight after that update, in a brief window before the two month close period ahead of the final results themselves.

Indeed that was the case two years ago. -

20/04/2020 06:00 UK Regulatory (RNS & others) SysGroup PLC Trading and COVID-19 Update LSE:SYS Sysgroup Plc
" ... The Group's trading for the year is in line with the Board's expectations ..."
https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Trading-and-COVID-19-Update/82258902

21/04/2020 06:00 UK Regulatory (RNS & others) SysGroup PLC Directors Share Purchase LSE:SYS Sysgroup Plc
https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Directors-Share-Purchase/82268596

30/06/2020 06:00 UK Regulatory (RNS & others) SysGroup PLC Final Results LSE:SYS Sysgroup Plc
https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Final-Results/82752288


SYS's first half performance was on course, at which point SYS expressed confidence in its full year outcome.

I think that we would have heard already if there was going to be any dramatic divergence from that.

Moreover, SYS's adjusted annualised eps (earnings per share) based on H1 is 3p per share, so SYS's current share price of just 24p is dirt cheap for a quality, profitable IT services company, in a strong cash position.

22/11/2021 07:00 UK Regulatory (RNS & others) SysGroup PLC Half-year Report LSE:SYS Sysgroup Plc
"... Adjusted EBITDA (1) of GBP1.34m (H1 FY21: GBP1.41m), in line with management's expectations ...
Adjusted basic EPS (3) of 1.5p (H1 FY21: 1.7p) ...
Adam Binks, Chief Executive Officer, commented:
"I am pleased with the performance of the business in light of the ongoing economic uncertainty and the Board is confident in meeting expectations for the full year. We have a strong customer base who rely heavily on the business critical support that we provide and we benefit from very high levels of recurring revenue.
"Throughout the pandemic we have focused on ensuring that our business is optimised to take full advantage once conditions normalise and I am delighted with the progress made. IT infrastructure and support is integral to all businesses and as budget confidence returns we have the right market solutions, the right people to deliver and the right platform to scale rapidly." ..."
https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Half-year-Report/86620081

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