Trading Update and Notice of Results
29 October 2021
SysGroup plc
("SysGroup" or the "Group")
Trading Update and Notice of Results
H1 adjusted EBITDA in line with expectations
SysGroup (AIM:SYS), the award-winning managed IT services and cloud hosting provider, 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 £7.58m (H1 FY21: £9.01m), 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 £1.34m for the first half which is in line with management's expectations (H1 FY21: £1.41m).
The Group ended the half year period with a very healthy net cash position of £1.96m (H1 FY21: net cash of £1.17m).
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."
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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, Manchester, Newport and Telford.
For more information, visit http://www.sysgroup.com
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