Sysgroup Share Discussion Threads

[yump] 25/11/2021 15:37

Just having a nose around for shares.

Looking over the past few years results, it looks like they've made less profit on increasing revenue. That includes pre-covid. For an IT business that should have good margins, that seems odd.

Is there a simple reason for that ?

[hedgehog 100] 25/11/2021 12:07

I wouldn't be surprised to see SYS tipped in the press soon.

It's so undervalued, and with such good growth prospects.

[the chairman elect] 25/11/2021 08:28

Reference my POST 259 - excellent investor conference call - link to be put on the website?

[rivaldo] 25/11/2021 08:25

Good to see another buy at above the published offer price this morning, this time 12,500 shares at 32.5p.

[rivaldo] 24/11/2021 15:13

I've been topping up here - and someone's just bought 30,151 at a big premium at 33p and cleared out the usually pretty tight market.

The most shares you can now buy online is just 1,000 at 32p - whilst you can sell the unusually large amount of 50,000 at 30.5p.

[weatherman] 22/11/2021 13:21

The report just released says current shares in issue are 49,859,690 - about £15m mkt cap at 30p - still cheap on a PE of 10.

[the chairman elect] 22/11/2021 09:55

INVESTOR meet COMPANY

LSE:SYS are on this tomorrow morning. Anyone can register to join in the SYS company presentation post results.

Sorry that I do not have a link but a quick google should give you that.

[masurenguy] 22/11/2021 09:52

FT states that the number of issued shares is 38.27m, which at 30p gives SYS a market cap of £11.48m. This compares with the ADVFN figure of 12.83m and £3.85m respectively. Therefore cash is circa 17% of the market cap.

[hedgehog 100] 22/11/2021 09:42

ScepticalInvestor22 Nov '21 - 08:01 - 254 of 255 0 0 0
"So it meets their previous profit warning update iow"


There wasn't a profit warning.
They said that revenues would be lower, but profit in line with expectations, which they have repeated today.

The same profit on lower revenues means that margins are increasing.

Early this year I saw a company announce that revenues would be higher than expected, but profit the same, and the shares tanked because of worries about falling margins!

Improved margins are a sign of competitive strength.

And when SYS starts increasing revenues, it will have a double winner.

[weatherman] 22/11/2021 09:37

The market cap figure given by ADVFN is wrong.

[masurenguy] 22/11/2021 09:32

Goes to show how illiquid this is - not a single trade in the first 90 minutes after issuing their interims. The business is profitable and over 50% of the current market value is in net cash !

[scepticalinvestor] 22/11/2021 08:01

So it meets their previous profit warning update iow

[rivaldo] 22/11/2021 07:35

Good to see the confidence in meeting expectations. On track for around 3p-3.5p EPS, with a healthy almost £2m cash pile and confidence that growth will return in what is now a critical sector for every company.

Just a question of time and a little patience.

[masurenguy] 22/11/2021 07:08

Steady as they go !

Interim Results

SysGroup announce its unaudited half year results for the six months ended 30 September 2021.

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)

Operational highlights

-- Consistently high customer satisfaction levels maintained above 97%
-- Invested to enhance the technology that powers our multi-tenanted SysCloud 2.0 platform
-- Manchester office opened to expand northern sales & marketing presence - refurbishment of Newport office
-- Project Fusion has continued to deliver significant improvements to our business operations from a unified platform of systems across the Group; further functionality for marketing automation, people management and reporting added in H1
-- ESG project commenced with inaugural ESG disclosure to be included in the FY22 annual report

Outlook

-- The long-term outlook for the Group and the market remains very positive as IT has become an increasingly important board agenda item for businesses in the last 18 months
-- Continuing to see companies seek to move towards Cloud rather than on-premise solutions, with the expectation that business-critical IT projects and investment decisions will 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

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."

[rp19] 09/11/2021 20:18

Keen to see the outlook statement in the results as, based on the recent trading statement, the results in themselves unlikely to be particularly brilliant. But the market looks forward etc.

[robin_lemer] 09/11/2021 17:08

I bought shares as a result of the increase of the holding of Helium. They are successful fund and have noted that over the last few years they have been and out of the shares and their trading has been well timed. Have taken the view they speak to the management and have a good idea next results in two weeks time will be positive and that is the reason for their recent purchase

[rivaldo] 08/11/2021 12:24

RNS - Helium Rising Stars Fund have been buying, and are now up to 6.88, or 3.4m shares, up from 4.65%. Quite an increase, and dated 5/11 so presumably to do with that large trade last Tuesday:

[masurenguy] 05/11/2021 15:07

Carter sold out his complete holding in SYS. I believe that he is a private investor who is also the largest shareholder in Peel Hunt.

[tiltonboy] 05/11/2021 13:07

Thanks gleach, I hadn't seen that.

That is the holding of Darren Carter...not the great Darren Carter who took the winning penalty in the 2001/2 play-off final against Norwich...lol...

I presume he was a holder of one of the companies SYS took over.

[gleach23] 05/11/2021 10:09

Ahead of results on 22nd, couldn't resist a top-up this morning for the reasons highlighted in recent posts although didn't find the lack of face to face meetings due to Covid an entirely convincing explanation for the revenue drop.

Noteworthy trade reported late on Tuesday of 3.55m shares @ 28p will hopefully be a marker for the low point.

[rivaldo] 02/11/2021 07:17

RNS re investor presentation on Investor Meet on November 23rd after the interims - good to see SYS being proactive with investors:

[tiltonboy] 01/11/2021 15:13

Totally agree. It doesn't matter who is buying or selling. All that matters is the company delivers. The share price will sort itself out!

[hastings] 01/11/2021 14:16

That's what makes the market-go-round!

[tiltonboy] 01/11/2021 13:40

Looks like there are a few who are less impressed!