Last checked at 23 Apr 2018 07:00
23 April 2018
SysGroup plc
("SysGroup" or the "Group")
Trading Update and Notice of Results
SysGroup plc (AIM: SYS), the Managed IT Services and Cloud Hosting provider, provides the following trading update for the year ended 31 March 2018.
Trading update
The Group is pleased to report that revenue and adjusted EBITDA from continuing operations will be in line with market expectations having grown by 46% and 63% respectively since FY17. The results will also provide further evidence that the Group is firmly established as a trusted provider of Managed IT Services, where recurring revenue represents over 71% of the Group's total.
Rockford IT, which was acquired in November 2017, is performing in line with management's expectations and the successful integration of the business is largely complete with the deferred consideration of £1.0m paid in full following achievement of the integration milestones.
During the second half of the year, the Group invested more in direct marketing, developing in-house expertise rather than relying on external agencies, and the results have been compelling as evidenced by the recent contract win of T.J. Morris Limited and growing order inflows.
The Board, therefore has taken the decision to further increase its investment in the Group's new business capability in FY19 to capitalise on the market opportunity to drive organic growth whilst also continuing to seek acquisitions of other complementary businesses like Rockford IT.
Notice of Results
SysGroup expects to publish full year results for the year ended 31 March 2018 in June.
Adam Binks, Chief Executive, of SysGroup plc commented:
"I'm delighted with the progress the Group continues to make. The need for quality Managed Services has never been stronger, driven by increasing regulatory and security factors. SysGroup has an excellent product offering, a highly engaged workforce and proven go-to-market strategy. The investment that we are making in the current financial year will serve to drive shareholder returns for next year and beyond."
For further information please contact: SysGroup plc Adam Binks, CEO Julian Llewellyn, CFO
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Tel: 0151 559 1777
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Shore Capital (Nomad and Broker) Edward Mansfield / Anita Ghanekar
| Tel: 020 7408 4090 |
Alma PR (Financial PR) Josh Royston / Helena Bogle
| Tel: 020 8004 4218 |
About SysGroup
SysGroup is a leading provider of Managed IT Services, Cloud Hosting, and expert IT Consultancy. The Group delivers solutions that enable clients to understand and benefit from industry leading technologies and advanced hosting capabilities. SysGroup focuses on a customer's strategic and operational requirements - enabling clients to free up resources, grow their core business and avoid the distractions and complexity of delivering IT services.
The Group has offices in Liverpool, Coventry, London and Telford.
For more information, visit www.sysgroupplc.com.