SysGroup remains confident in trading update despite revenue dip

Liverpool-based MSP says it confident about delivering growth in 2021 as lockdown restrictions ease

SysGroup's CEO claims the firm remains confident despite reporting a dip in revenues for its full year 2020/2021 results.

Revenues are expected to fall by seven per cent for the 12 months to 31 March 2021 for the Liverpool-based firm as the pandemic caused customers to put off decisions on new IT spending.

Profits are meanwhile expected to come in slightly ahead of expectations for the year. Adjusted EBITDA is set to grow by three per cent annually, with the MSP benefiting from acquisition synergies and imposing tight control over its costs.

The firm's cash balance stood at £3.47m as of 31 March comparted to £3.04m at the same point in the previous year.

In a statement, CEO Adam Binks said the market remains buoyant despite the challenges that Covid has created.

"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. Whilse 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," said SysGroup CEO Adam Binks.

"While 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."

SysGroup claims that moving to remote working for its entire 125-strong workforce has proven a success, but said there are plans to return to the office from 24 May.

Binks told CRN in a previous interview that most of the firm's employees are keen to get back into the office after more than a year of remote working.