Sysgroup Share News (SYS)

LONDON (Alliance News) - Managed IT services and cloud hosting provider SysGroup PLC said Monday that its revenue and adjusted earnings before income, taxation, depreciation and amortisation for the year ended March 2018 will be "in line with market expectations".

SysGroup's revenue and EBITDA has grown 46% and 63% respectively since financial 2017. It has also said its managed IT services generates 71% of its total revenue.

The purchase of Rockford IT in November 2017 for GBP3.9 million has performed "in line with management expectations". The integration is "largely complete" with the deferred consideration of GBP1.0 million paid in full following the achievement of integration milestones.

During the second half of the year, the company invested more in direct marketing, developing in-house expertise rather than relying on external agencies, and it claims the results have been "compelling" as evidenced by its recent contract win of T.J. Morris Ltd and growing order inflows.

The company, therefore, has taken the decision to further increase its investment in its new business capability in the financial year 2019 "to capitalise on the market opportunity to drive organic growth whilst also continuing to seek acquisitions of other complementary businesses like Rockford IT".

Chief Executive Adam Binks said: "I'm delighted with the progress the group continues to make. The need for quality Managed Services has never been stronger, driven by increasing regulatory and security factors. SysGroup has an excellent product offering, a highly engaged workforce and proven go-to-market strategy. The investment that we are making in the current financial year will serve to drive shareholder returns for next year and beyond."

Shares in SysGroup were up 1.2% to 41.00 pence each Monday.