Sysgroup Share Discussion Threads

[cpap man] 21/4/2020 07:30

Yet another RNS out from SYS reference directors SYS share purchases....



Looks like they agree with weatherman and not gswredland!!!!



SysGroup plc
("SysGroup" or the "Company")

Directors Share Purchase

SysGroup PLC (AIM:SYS), the multi award-winning Managed IT Services and Cloud Hosting provider, announces that it has received notification that on 20 April 2020, Adam Binks, Chief Executive Officer, purchased 57,692 ordinary shares of 1p each ("Ordinary Shares") at 26p each and Martin Audcent, Chief Financial Officer, purchased 57,656 Ordinary Shares at 26p each.

In addition, the Company has also been informed that Non-Executive Directors Mike Fletcher and Mark Quartermaine also acquired 76,923 Ordinary Shares each, at a price of 26p per share.

[gswredland] 20/4/2020 18:08

Yes but given the uncertainty rather unlikely!
Much rather be in KAPE. Nice statement there
.

[weatherman] 20/4/2020 16:02

Turnover nearly £20m, EBITA £2.8m - mkt cap of £13m, and strong growth. I would suggest fair value is closer to 50p.

[weatherman] 20/4/2020 15:59

hxxps://www.investmentweek.co.uk/analysis/4013769/cyber-security-opportunities-emerging-booming-bad-actor-activity

" Associate director for equity funds at Gresham House David Leahy identified two portfolio holdings set to benefit from the surge in interest in cyber security; Kape Technologies and SysGroup.... managed IT services and cloud infrastructure provider SysGroup is set to benefit from the growing number of companies valuing "reliable, secure operators". "

[cpap man] 20/4/2020 12:15

Hybridan Small Cap Feast: 20-04-2020



SysGroup 26.5p £13.1m (SYS.L)

The multi award-winning Managed IT Services and Cloud Hosting provider provided a trading update for the year ended 31 March 2020, together with an update on the impact of the COVID-19 virus. The Group's trading for the year is in line with the Board's expectations, with performance underpinned by high levels of recurring revenue. The Group expects to report revenue growth of 53% to c.£19.5m (FY19: £12.8m) with adjusted EBITDA increasing by 99% to c.£2.8m (FY19: £1.4m) supported by the contributions of the acquisitions of Certus IT Limited and Hub Network Services Limited in the year, as well as the benefits of operational efficiencies. As at 31 March 2020 the Group's cash balance was £3.0m with net cash of £0.5m on a pre IFRS 16 basis.

“COVID-19 is, and will continue to be, a challenging time for many and our priority remains the welfare of our team and their families. The Group is well placed to benefit from its strong levels of recurring revenue and excellent levels of cash generation however we remain mindful of the potential impact to trading in the coming months.”

[cpap man] 20/4/2020 09:10

20 April 2020

SysGroup plc

("SysGroup" or the "Group")



Trading and COVID-19 Update



SysGroup PLC (AIM:SYS), the multi award-winning Managed IT Services and Cloud Hosting provider, is pleased to provide a trading update for the year ended 31 March 2020, together with an update on the impact of the COVID-19 virus.

Group trading performance

The Group's trading for the year is in line with the Board's expectations, with performance underpinned by high levels of recurring revenue. The Group expects to report revenue growth of 53% to c.£19.5m (FY19: £12.8m) with adjusted EBITDA increasing by 99% to c.£2.8m (FY19: £1.4m) supported by the contributions of the acquisitions of Certus IT Limited and Hub Network Services Limited in the year, as well as the benefits of operational efficiencies. Recurring revenues now represent 77% of the Group's total revenue (FY19: 74%) as the Group continues to focus on the provision of end-to-end Managed IT Services.

As at 31 March 2020 the Group's cash balance was £3.0m with net cash of £0.5m on a pre IFRS 16 basis.

The Group's balance sheet is supported by total facilities of £5.0m expiring in 2024. The facilities consist of a £1.75m term loan which currently has £0.3m of headroom and a £3.25m revolving credit facility ("RCF"). The RCF is currently undrawn, providing the Group with additional available liquidity to execute on acquisition opportunities that may arise as a result of this unprecedented period of uncertainty.

As we enter the new financial year, the Group will continue to benefit from its high levels of recurring revenues, underpinned by a robust balance sheet. Our services are mission critical to our customers, particularly in the current environment and we have worked tirelessly to ensure their business continuity and support new working practices.

Impact of COVID-19 and outlook

Our number one priority is the health and wellbeing of our team and their families whilst continuing to support our customers. Our business continuity plans have been successfully implemented and remote working facilitated across our operations.

The world has undergone material change and SysGroup is already innovating. We are adapting to new ways of working and educating our customers by sharing our experiences with them. We are immensely proud of how our team has adapted overnight and has continued to support our customers, a small number of whom are experiencing significant business disruption.

Whilst we have not experienced any immediate impact from the COVID-19 pandemic, we are cognisant that we are likely to be affected as it continues. Our ability to mobilise our sales teams, technical engineers and consultants will of course be restricted during the period of lockdown. It would also not be unreasonable to expect a delay to customers committing to major asset refreshes and contract renewals until they have established the impact of COVID-19 to their own businesses.

Given the current uncertainty, the Group does not believe it is prudent to provide guidance on the financial year to 31 March 2021 at this stage. We will continue to provide shareholders with updates as the situation progresses.

Adam Binks, Chief Executive Officer, commented:

"I am delighted with the progress that we have continued to make throughout the course of the FY20 period and on behalf of the entire Board, I would like to thank our team for their continued hard work.

COVID-19 is, and will continue to be, a challenging time for many and our priority remains the welfare of our team and their families. The Group is well placed to benefit from its strong levels of recurring revenue and excellent levels of cash generation however we remain mindful of the potential impact to trading in the coming months.

The importance of workplace technology services has become even more prominent as a result of the COVID-19 pandemic and we are focused on supporting our customers through this period of global change, whilst positioning the business to take advantage of any commercial opportunities that may arise."

[cpap man] 19/12/2019 08:15

A couple of HOLDINGS RNSs out this morning @ SYS

[cpap man] 25/11/2019 07:50

25 November 2019



SysGroup plc

("SysGroup" or the "Company" or the "Group")



Half yearly results for the six months ended 30 September 2019



SysGroup PLC (AIM:SYS), the multi award-winning Managed IT Services and Cloud Hosting provider, is pleased to announce its unaudited half year results for the six months ended 30 September 2019 (H1 2020).



Financial highlights

· Revenue increased 60.0% to £9.3m (H1 2019: £5.8m)

· Recurring Managed IT Services represented 79.7% of total revenue (H1 2019: 77.8%)

· Adjusted EBITDA1 increased 111.2% to £1.18m (H1 2019: £0.56m)

· Adjusted profit before tax2 of £0.65m (H1 2019: £0.26m)

· Statutory loss before tax of £0.37m (H1 2019: loss of £0.35m)

· Adjusted basic EPS3 of 1.1p (H1 2019: 1.1p)

· Basic loss per share of 0.9p (H1 2019: loss per share 1.4p)

· Adjusted cash generated from operations4 increased 106% to £1.1m (H1 2019: £0.5m)

· Cash of £2.65m at 30 September 2019 (30 September 2018: £1.15m)

· Net (debt)5 at 30 September 2019 of £(0.72)m (30 September 2018: £(0.84)m)



Operational highlights

· Acquisition of Hub Network Services Limited ("HNS") for £1.45m

· Integration of HNS completed in under three months

· Introduction of Customer Engagement plan demonstrating >97% satisfaction

· Planned closure of legacy Coventry office and datacentre complete



Post-period highlights

· Martin Audcent awarded North West Finance Director of the year 2019



Adam Binks, Chief Executive Officer, commented:

"I am pleased to report that SysGroup continues to deliver strongly against its stated strategy, with recurring revenues now representing almost 80% of our total income compared to 68% when I stepped into the CEO role in April 2018. The acquisition of HNS has supplemented the acquisition of Certus which we completed in H2 2018 and was our largest acquisition to date. The successful execution of these transactions demonstrates our capability to identify and attract good businesses, together with the capability to successfully integrate them as we build out our operational infrastructure to scale up the business.



Supported by a team of more than 130 individuals, SysGroup is moving forward at pace and is taking its place in the market as a serious contender. I thank each and every one of the team that strive each day to help make SysGroup one of the leading MSPs in the UK and give me the confidence to report that the Company continues to trade in line with management's expectations."



Notes

1. Adjusted EBITDA is earnings before interest, taxation, depreciation, amortisation of intangible assets, exceptional items and share based payments.

2. Adjusted profit before tax is profit before tax after adding back amortisation of intangible assets, exceptional items and share based payments.

3. Adjusted basic EPS is profit after tax after adding back amortisation of intangible assets, exceptional items, share based payments and associated tax.

4. Adjusted cash generated from operations represents operational cashflows adjusted to exclude cashflows for exceptional items

5. Net (debt) represents cash balances less bank loans, lease liabilities and contingent consideration.



For further information please contact:



SysGroup Plc

Adam Binks, Chief Executive Officer

Martin Audcent, Chief Financial Officer





Tel: [phone]





Shore Capital (Nomad and Broker)

Corporate Finance: Edward Mansfield / Daniel Bush

Corporate Broking: Heath Snyder / Fiona Conroy





Tel: [phone]

Alma PR (Financial PR)

Josh Royston / Helena Bogle

Tel: [phone]





About SysGroup



SysGroup is a leading provider of Managed IT Services, Cloud Hosting, and expert IT Consultancy. The Group delivers solutions that enable clients to understand and benefit from industry leading technologies and advanced hosting capabilities. SysGroup focuses on a customer's strategic and operational requirements - enabling clients to free up resources, grow their core business and avoid the distractions and complexity of delivering IT services.



The Group has offices in Liverpool, London, Newport, Bristol and Telford.



For more information, visit hxxp://www.sysgroupplc.com

[f15jcm] 25/11/2019 07:45

18 million

[parsons4] 25/11/2019 07:19

Good results progress being made and the company is valued at £8m !!!!!!

[weatherman] 01/11/2019 15:53

Results 25 Nov.

[weatherman] 30/10/2019 14:07

EMEA company of the year.
hxxps://www.sysgroup.com/emea-company-of-year-2019

[yump] 27/6/2019 12:51

Yes the director buys and the stableish chart are what got me interested. At what point 'clean' earnings drop out is a bit more difficult to say. Haven't yet done the calcs. to see what the figures would look like, if/when exceptionals drop.

Perhaps that's pointless and best to invest based on the apparently successful business model.

On a quick look, cost of sales and operating expenses increased in line with sales (% wise).
Admin. expenses took a bigger jump, presumably because of acquisitions.

So ignoring the exceptionals, at some point some admin. costs need/should get knocked out - hoping they'll mention that somewhere at some point... no point in expanding by acquisition if your admin. costs increase at a faster rate than sales.

[weatherman] 27/6/2019 12:12

I've started to invest here with profit from Scisys t/o. Looks like it could go to above £1 given 2 or 3 years of good growth.

[tiltonboy] 27/6/2019 10:32

I like the recurring revenue model,giving a bit more transparency.

As long as they don't come tapping the market for more equity down at these levels, I think we can make a bit of progress.

[aishah] 27/6/2019 09:54

yes, a very good sign.

SysGroup reports 22% increase in revenue to £12.8m

[5oletrader] 27/6/2019 09:14

For me... No one knows the accounts better than the Chief Financial Officer.

The fact he's just purchased 59,808 @ 41.8p (£25,000k) speaks volumes IMO.

[yump] 27/6/2019 09:06

Quite interested here but the large acquisition means a load of exceptionals in the next results which of course is always why companies start quoting Ebitda. So difficult to get a real value. On the other hand they are now post transition to a recurring revenue model, so the inevitable drop in profits should in theory be past.

[tiltonboy] 27/6/2019 08:57

A good note from SCAP yesterday:

Investment case. At 39p, SysGroup trades at 6.7x EV/EBITDA for FY2020F falling to 5.8x
for FY2021F and a current year FCF yield of c. 8%. Executing to plan should create a
significant value uplift as results are delivered.

Hopefully this isn't yet another false dawn!

[cpap man] 27/6/2019 08:00

Another RNS this morning from SYS....directors [plural] share purchases of SYS stock

[cpap man] 24/4/2019 08:25

SYS are far too cheap [undervalued] in my book! Re-rating on the cards for SYS?

[cpap man] 24/4/2019 07:55

24 April 2019

SysGroup plc

("SysGroup" or the "Group")

Trading Update and Notice of Results

SysGroup (AIM:SYS), the award-winning managed IT services and cloud hosting provider, is pleased to provide a trading update for the year ended 31 March 2019, together with a notice of results.

Group trading performance
The Group is pleased to report that both revenue and adjusted EBITDA will be in line with management's expectations having grown by approximately 22% and 40% respectively since FY18. The results will underpin the Group's stated strategy of focusing on the provision of end-to-end Managed IT Services with recurring revenue now representing approximately 74% of the Group's total revenue.

The Group acquired Certus IT Limited ("Certus") towards the end of the period and is pleased to report that trading performance from Certus is in line with management's expectations. The process of integration is now underway, and we expect Certus to be trading under the SysGroup brand later in the year.

Notice of Results
SysGroup expects to publish its full year results for the year ended 31 March 2019 on 26 June 2019.

Adam Binks, Chief Executive of SysGroup commented:
"It has been an exciting first year at the helm of SysGroup, and I am pleased with the progress that we have made on our journey to become the leading provider of managed IT services and cloud hosting. We've spent a considerable amount of time getting to know our customers and understanding the challenges they face within their own businesses so that we can develop leading solutions that offer real value. I'm also delighted to have welcomed the Certus team on-board following the acquisition earlier this year. We will continue to invest in the Group and in our people throughout the course of FY20 and I am confident that we will see shareholder returns as a result."

[cpap man] 07/2/2019 12:30

Techmarket view:

AIM-listed managed services and cloud hosting provider, SysGroup, has acquired Newport-based Certus IT. SysGroup, which has made a placing of new ordinary shares to raise £10m, will pay an initial cash consideration of £8m, increasing to a maximum cash consideration of £9m (dependent on performance).

Certus has contracted future income of c£8.7m for the three years to end December 2021, and 40 members of staff.

Synergies between the pair are clear in terms of service offerings, geographical reach and customer bases. Bringing Certus into the fold also expands SysGroup’s Infrastructure-as-a-Service customer base and upgrades the Group to gold partner status with Dell EMC and Microsoft.

SysGroup had a good year in 2018 (see New CEO presides over record SysGroup revenue), and we believe the timing of the Certus acquisition looks good too.

[cpap man] 07/2/2019 12:25

Great news!