Last checked at 19 Apr 2022 07:00
19 April 2022
SysGroup plc
("SysGroup" or the "Group")
Trading Update
Notice of Results
Full year Adjusted EBITDA in line with expectations
SysGroup plc (AIM:SYS), the multi award-winning managed IT services, cyber security and cloud hosting provider, is pleased to provide a trading update for the period ended 31 March 2022, together with a notice of results.
Group trading performance
Despite the external challenges faced throughout our industry over the last 2 years, the Group expects to report Adjusted EBITDA1 of £2.8m for the period ended 31 March 2022 which is in line with market expectations.
This is despite the expected decline in revenue compared to the prior period, as customers continued to defer spending on enhanced IT projects. The Adjusted EBITDA performance reflects the underlying strength of our business with strong operational management and the full year benefit of acquisition synergies, supported further by the quality of our managed services revenues and sustainable margins.
Further, it is pleasing to note that the Group has maintained its track record of solid cash generation, ending the financial year with £3.0m of net cash which is ahead of market expectation.
Outlook
Encouragingly, during the latter part of H2 FY22, we have started to see enhanced trading conditions with both new and existing clients. Whilst not yet at pre-pandemic levels, customers are once again starting to feel confident to commit to spending on enhancements to their essential IT services. Coupled with the acquisition of Truststream, which has added further capabilities to our managed security service offering, the Group is well positioned to deepen it existing client relationships and is looking forward to the future.
Notice of results
SysGroup expects to publish its full year results for the period ended 31 March 2022 on 20 June 2022.
Adam Binks, Chief Executive Officer, commented:
"This is a very robust performance given the headwinds faced for a prolonged period of time. Our business has proved to be resilient which reflects both the quality of our offering and the core nature of the services that we provide.
The strong EBITDA performance and cash generation demonstrate the operational strength and financial discipline of the Group and investments in prior periods mean that we are ready to scale as conditions improve. We will do so both organically and through further earnings enhancing M&A, as evidenced by the post year end acquisition of Truststream Security Solutions.
We have started to see the first green shoots of recovery in customer spending and look forward to the future with confidence."
Notes
1. Adjusted EBITDA is earnings before interest, taxation, depreciation, amortisation of intangible assets, exceptional items and share based payments.
For further information please contact:
SysGroup plc Adam Binks, Chief Executive Officer Martin Audcent, Chief Financial Officer |
Tel: 0151 559 1777
|
Zeus (Nominated Adviser and Broker) Dan Bate James Edis |
Tel: 0161 831 1512 |
Alma PR (Financial PR) Josh Royston Matthew Young |
Tel: 07780 901 979 |
About SysGroup
SysGroup is a leading provider of managed IT services, cloud hosting, cyber security and expert IT consultancy. The Group delivers solutions that enable clients to benefit from industry leading technologies and delivers managed solutions with security, compliance and governance from the core. 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 managing IT services.
The Group has offices in Edinburgh, Liverpool, London, Manchester, Newport and Telford.
For more information, visit http://www.sysgroup.com