(Alliance News) - SysGroup PLC on Friday said earnings have remained in line with expectations, despite a double-digit percentage drop in six-month revenue, as the company has kept a tight lid on overhead costs and has made savings from integrating past acquisitions.
SysGroup's shares were down 16% and 28.00 pence in London on Friday afternoon.
The Liverpool-based IT services and cloud-hosting provider said it expects to report revenue for the half year that ended on September 30 of GBP7.6 million, down 16% from GBP9.0 million a year earlier.
SysGroup explained the drop by saying customers are still reducing and deferring expenditures due to the Covid-19 pandemic and its sales people still face restrictions on in-person meetings with current and potential customers.
Still, it said, operational performance has been "robust", with overhead costs contained as a result of integration synergies from past acquisitions.
As a result, SysGroup expects adjusted earnings before interest, tax, depreciation and amortisation for the recent half year to be GBP1.3 million, in line with management expectations and down only slightly from GBP1.4 million a year before.
"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," Chief Executive Adam Binks said, adding: "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."
SysGroup said it will release its full interim results on November 22.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Sysgroup (SYS)