SysGroup revenue, earnings set to beat full-year expectations

(Sharecast News) - SysGroup said in an update on Monday that full-year revenue and adjusted EBITDA for the 2026 financial year were expected to come in ahead of market expectations, supported by a stronger second-half performance and continued demand for cybersecurity services.

The AIM-traded cloud and IT services provider reported revenue of £22.1m for the year ended 31 March, up 7.6% from £20.5m a year earlier.

Growth was driven by a robust second half, with revenue in the period rising 17.2% year-on-year, including a £1.1m contribution from the acquisition of Saxis Group, completed in December 2025.

On an organic basis, second-half revenue increased 7.0%.

The group said it expected to report adjusted EBITDA of £1.2m, up from £0.9m in 2025 and ahead of current market expectations.

First-half adjusted EBITDA was £0.2m.

SysGroup said it ended the year with gross cash of £7.7m, compared with £8.7m the previous year, and a net cash position of £2.7m, down from £3.6m, reflecting £1.3m of cash consideration paid for the Saxis acquisition.

"2026 has been a year of disciplined execution and clear progress for SysGroup," said executive chair Heejae Chae.

"A stronger second half, supported by improved go-to-market effectiveness and continued demand in cybersecurity, has driven full-year performance ahead of expectations."

Chae added that operational and strategic changes introduced in the second half, including increased use of artificial intelligence across go-to-market and service delivery, began to deliver benefits in the fourth quarter and would support the group going into the new financial year.

"With improved profitability, a robust cash position, and enhanced capabilities following the Saxis acquisition, we have entered the 2027 financial year with positive momentum," she said, adding that further detail on performance and outlook would be provided with full-year results due in July.

At 1218 BST, shares in SysGroup were up 15.19% at 15.55p.

Reporting by Josh White for Sharecast.com.

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