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(Alliance News) - SysGroup PLC on Tuesday posted an improvement in its results for financial 2020 as it said the Covid-19 crisis has presented it with significant opportunities.
Shares in the IT services & cloud company were trading 8.1% higher at 36.75 pence each on Tuesday afternoon in London, but down 83% from the start of the year.
For its financial year ended March 31, SysGroup posted revenue of GBP19.5 million, up 53% from GBP12.8 million recorded for financial 2019. Pretax loss narrowed substantially to GBP230,000 from GBP830,000.
The Liverpool-based company attributed the improvement to its "buy and build strategy" which saw its acquire Hub Network Services Ltd for GBP1.5 million in the first half of the year. It stated that 77% of its total revenue came from Managed IT Services recurring revenues.
Looking ahead, SysGroup said that while Covid-19 has resulted in delays to delays to sales cycles with some of its customers unable to commit to contract renewals, it remains optimistic for continued growth as the crisis has dramatically accelerated the trend towards flexible and remote working practices.
"While there is still uncertainty around the impact of Covid-19, we believe it has presented us with significant opportunities. Businesses are now seeing the value of outsourced managed IT services and are looking to trusted providers to help them navigate the complexities of the technological landscape. I am confident we are well positioned to support our customers through this period of change which will be further underpinned by our buy-and-build strategy," said Chief Executive Adam Binks.
As at the end of March, the company had cash of GBP3.0 million, a GBP1.8 million term loan which had GBP350,000 of headroom, and an undrawn GBP3.3 million acquisition revolving credit facility.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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