Last checked at 19 Apr 2021 07:00
19 April 2021
SysGroup plc
("SysGroup" or the "Group")
Trading Update, New Investor Website and Notice of Results
SysGroup PLC (AIM:SYS), the multi award-winning managed IT services and cloud hosting provider, is pleased to provide a trading update for the year ended 31 March 2021, together with an update of its investor website and a notice of results.
Group trading performance
The Group has continued to experience solid trading throughout the year despite the economic uncertainty. Revenue for the year is expected to be approximately 7% lower than the comparative period due to the impact of the pandemic as customers deferred decisions on new expenditure, as noted in the Group's half year results to 30 September 2020. Conversely, adjusted EBITDA is expected to be c.3% up on the prior year and slightly ahead of market expectations as the Group has benefitted from acquisition synergies coupled with tight management cost control.
The Group had a cash balance of £3.47m as at 31 March 2021 (£3.04m at 31 March 2020) with strong operating cash generation in the year. The Group also paid £0.98m in respect of the earn-out consideration to the vendors of Certus in April 2020. The Group deferred payment of VAT in Q1 of FY21 but did not utilise any other government support schemes and the deferred VAT of £0.28m was subsequently repaid in full in December 2020.
The Group's remote working model has been successful, with all team members able to continue supporting our customers throughout this challenging period however we now have plans in place to re-introduce office working, which subject to unchanged government guidance, will commence on 24 May 2021. As we enter the new financial year and as lockdown restrictions ease further, we are confident of delivering further growth, underpinned by our solid cash position and strong levels of recurring revenue.
New Investor Website
SysGroup is pleased to announce the launch of its new investor website. The website can be found here: https://www.sysgroup.com/about-us/investors
Notice of Results
The Group will announce its full year results for the period ended 31 March 2021 on 21 June 2021.
Adam Binks, Chief Executive Officer, commented:
"I am pleased with the continued progress we have made throughout FY21 and I would like to take the opportunity to thank our team for their dedication and unequivocal efforts despite the personal challenges that the pandemic has brought for us all. Whilst it has been a challenging period, the pandemic has highlighted the visible need for business leaders to accelerate their own digital transformation journeys and the benefits of outsourcing managed IT services.
Whilst we continue to assess the economic environment and impact of COVID-19, the long-term market opportunity for the Group remains buoyant, and I remain confident in the outlook for the business. I look forward to providing a further update along with the Final Results."
For further information please contact:
SysGroup Plc Adam Binks, Chief Executive OfficerMartin Audcent, Chief Financial Officer
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Tel: 0151 559 1777
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Shore Capital (Nomad and Broker) Corporate Finance:Edward Mansfield / Daniel BushCorporate Broking:Fiona Conroy
| Tel: 020 7408 4090 |
Alma PR (Financial PR)Josh Royston / Helena Bogle | Tel: 07780 901979 |
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, London, Manchester, Newport and Telford.
For more information, visit http://www.sysgroup.com