MSP SysGroup sees revenue top £5m but losses widen

Liverpool-based firm integrated two acquisitions earlier this year

Liverpool-based SysGroup saw sales top £5m in its H1, but losses widened after it integrated two recently acquired companies and implemented a new CRM system.

For the six months ending 30 September 2018, the managed services provider saw revenue rise 47.3 per cent year on year to £5.8m.

Losses before tax widened from £80,000 to £350,000 over the same period.

Adam Binks, who was appointed the group's CEO earlier this year, said: "During the period we have focused on execution and I am pleased to report that the group has made steady progress in the first half of the year during my first period as CEO.

"The increasing proportion of recurring revenue demonstrates the ongoing success of our strategy and position as a consultative-led provider of managed IT services and cloud hosting.

"We have continued to invest in our business, our people, our brand and in systems and as a result we have a more sales-focused workforce all working towards the same common goals.

"We are beginning to see the results of this investment through a strengthened pipeline and remain confident in delivering full-year performance in line with current market expectations."

Earlier this year SysGroup integrated two acquisitions it has made over recent years, Rockford IT and Sys-Pro, and said more takeovers are likely.

The firm, which has almost 100 employees, added that it has increased the percentage of sales that recurring revenue operations contribute to the business, up five percentage points year on year to 77.8 per cent.

During the reported period, the firm said it made a number of investments in its back-office systems - implementing a new CRM system and unified comms solution. It also started refurbishing its Liverpool HQ and London office.