SysGroup ends year in line with expectations

(Sharecast News) - SysGroup confirmed on Tuesday that trading for the year ended 31 March was in line with market expectations, with adjusted EBITDA of £0.9m and revenue of £20.5m, down from £22.7m in the prior year.

The technology services provider, which focuses on digital and AI transformation for UK SMEs, highlighted significant improvements in its balance sheet following a successful fundraising earlier in the year.

It said it ended the period with gross cash of £8.7m and net cash of £3.6m, a marked turnaround from the £3.4m net debt reported in the 2024 financial year.

Capital investments during the year included £1.8m to complete the earn-out for its 2022 acquisition of Truststream Security, £0.7m in capex including spend on its AI service desk platform, and £0.3m for the acquisition of Crossword Consulting's trade and assets.

"Over the past year, we have made substantial investments to position the Group as a leading provider of end-to-end solutions for SMEs on their AI and machine learning journey," said chair Heejae Chae.

"Our rapid progress in hyper-scale cloud saw us achieve AWS Advanced Partner status within six months - a significant milestone that reflects our technical strength and execution capabilities.

"We are making strong progress towards becoming the 13th AWS Managed Service Provider in the UK - this milestone will enable us to deliver the scalable, future-proof cloud foundations SMEs need to launch and accelerate their AI journey."

Chae said the company had also strengthened its cybersecurity offering, becoming one of only three UK-based Advanced Partners for Rubrik, a leader in data security and cloud data management.

"Our acquisition of Crossword Security Consulting further expands our capabilities into cybersecurity-as-a-service, penetration testing, and virtual CISO services, allowing cross-selling opportunities.

"Internally, we are transforming into an AI-led organisation, showcasing the innovation we deliver to our clients.

"Backed by a strong balance sheet, we remain well-positioned to drive growth both organically and through strategic acquisitions."

At 0804 BST, shares in SysGroup were up 1.11% at 22.75p.

Reporting by Josh White for Sharecast.com.

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