Acquisitive MSP sees sales near £10m

SysGroup says it 'continues to seek attractive acquisition opportunities'

Managed service provider SysGroup has seen sales edge towards the £10m mark after continuing its M&A spree this year.

For the six-month period ending 30 September 2019, the firm saw sales rise 60 per cent to £9.3m, while adjusted EBITDA climbed 111.2 per cent to £1.18m.

SysGroup acquired Hub Network Services (HNS) in June, continuing a streak that has also seen it snap up Dell EMC Gold partner Certus and Rockford IT.

The firm also said "it continues to seek attractive acquisition opportunities".

CEO Adam Binks said that recurring revenues now make up the vast majority of SysGroup's sales.

"I am pleased to report that SysGroup continues to deliver strongly against its stated strategy, with recurring revenues now representing almost 80 per cent of our total income compared with 68 per cent when I stepped into the CEO role in April 2018," he said.

"The acquisition of HNS has supplemented the acquisition of Certus which we completed in H2 2018 and was our largest acquisition to date.

"The successful execution of these transactions demonstrates our ability to identify and attract good businesses, together with the ability to successfully integrate them as we build out our operational infrastructure to scale up the business."

Value-added resale now makes up 20 per cent of the group's overall revenue, with SysGroup claiming that "the market environment for VAR services has been impacted due to ongoing macroeconomic uncertainty, with many businesses choosing to delay major asset refreshes and purchasing decisions until the political backdrop is clearer".

"While this has impacted the rate of our revenue growth we remain confident in meeting our expectations," the group added. Managed services make up the remaining 80 per cent of sales.

SysGroup, which has a headcount of 130, also said that it decommissioned its Coventry datacentre, moving customers to existing facilities as it implemented cost savings from its Certus acquisition.