SysGroup beats market expectations in FY26 trading update

Saxis acquisition and new contract wins fuelled the firm’s performance

Manchester-based MSP SysGroup has reported increasing figures in its trading update for the year ended 31 March 2026.

Revenue rose 7.6 per cent year-on-year to £22.1m (FY25: £20.5m), driven by stronger momentum in the second half.

In H2, top line jumped 17.2 per cent, including a £1.1m contribution from the acquisition of Saxis Group Limited, which completed in December.

The purchase of the Buckinghamshire-HQ company was valued at £1.25m in cash, with a potential earn-out of up to £0.5m subject to performance conditions over two years.

The buyout was aimed at enhancing the group’s technical capability and broadening its end-to-end offering for mid-market and regulated customers.

Organic earnings in H2 grew seven per cent year-on-year, supported by its go-to-market strategy and demand for cybersecurity services.

SysGroup expects to report adjusted EBITDA of £1.2m, up from £0.9m the previous year and ahead of market expectations.

“FY26 has been a year of disciplined execution and clear progress for SysGroup,” said Heejae Chae, executive chair of SysGroup.

“During the second half, we implemented a number of operational and strategic changes, including the increased use of AI across our go-to-market and service delivery activities.

“The early benefits of these changes began to come through in Q4 and provide a stronger platform for the business as we enter the new financial year.”

Chae added the performance puts the organisation in a stronger position heading into FY27.

Adding to its organic momentum, SysGroup has signed two new contracts since the start of the year.

In January, the LSE-listed firm signed a three-year agreement with the Scouts Association to deliver managed network services across its nationwide network.

A month later, Saxis was awarded a deal with Dacorum Borough Council to modernise the local authority’s private cloud environment.

In addition to Manchester, the group operates from offices in London, Edinburgh and Newport.