(Alliance News) - SysGroup PLC reported on Monday a rise in annual profit despite a number of sector-wide headwinds in the year.
In the year ended March 31, SysGroup reported pretax profit of GBP598,000, nearly triple the GBP205,000 achieved the previous year.
Revenue dropped 19% to GBP14.7 million from GBP18.1 million, as expected. This, SysGroup explained, was due to the impact of the pandemic. Managed IT services represented 87% of revenue in the year.
Cash conversion was strong during the period, SysGroup said, ending the year ahead of management's expectations with net cash of GBP3.0 million, up from GBP1.9 million at the same time the previous year.
Looking forward, Chief Executive Adam Binks said: "Towards the end of the last financial year we began to see the green shoots of recovery for new business, with existing clients beginning to engage on projects and an increasing pipeline of opportunities from new potential clients. Whilst these are still early days and we must remain cautious, I am confident that we will see improvements to both revenue and EBITDA performance in this new financial year."
SysGroup is a Liverpool-based IT services, cyber security and cloud hosting provider. On Monday morning shares in the company were up 3.4% at 27.39 pence.
By Heather Rydings; heatherrydings@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Sysgroup (SYS)