SysGroup Outlook Optimistic Despite Widened Loss In Full Year

(Alliance News) - SysGroup PLC on Wednesday reported double-digit revenue growth in its most recently ended financial year, but said its loss widened due to increased costs.

The IT services provider said its pretax loss widened to GBP826,000 in the year to the end of March from just GBP7,000 reported a year earlier, as administrative expenses increased to GBP8.4 million from GBP5.9 million.

Meanwhile, revenue rose by 22% to GBP12.8 million from GBP10.5 million year-on-year, demonstrating SysGroup's continued shift and strategic focus on "higher quality" Managed IT Services sales over lower margin value added resale, it said.

Sysgroup explained that value added resale is a complementary sell to the customer base and is subject to the timing and size of customer's IT asset refresh cycles.

"We are beginning to see the benefits of our investment in sales and marketing and are well positioned to meet the complex requirements of our customers and prospects," said Chief Executive Adam Binks.

"The momentum achieved in the year has carried over into the start of the new financial year, and with the growth expected to continue, I remain optimistic for the future," added Binks.

SysGroup shares were trading 7.6% higher on Wednesday in London at 41.98 pence each.

Sysgroup