Sales fall for SysGroup but CEO remains upbeat
'I am pleased with the performance of the business in light of the ongoing economic uncertainty', CEO Adam Binks said
Managed IT services and cloud hosting provider SysGroup saw revenues dip by 15.8 per cent during the first half of its financial year.
The MSP reported sales of £7.58m compared with £9.01m in the same period last year while adjusted profit before tax fell to £0.96m from £0.99m.
SysGroup announced last month that it was expecting its revenue to fall by almost 16 per cent for the first half of the year, claiming the pandemic had continued to impact customer spending and the operations of the its sales teams.
But CEO Adam Binks stressed that he is pleased with the latest results given the circumstances.
"I am pleased with the performance of the business in light of the ongoing economic uncertainty and the board is confident in meeting expectations for the full year," he said.
"We have a strong customer base who rely heavily on the business critical support that we provide and we benefit from very high levels of recurring revenue.
"Throughout the pandemic we have focused on ensuring that our business is optimised to take full advantage once conditions normalise and I am delighted with the progress made.
"IT infrastructure and support is integral to all businesses and as budget confidence returns we have the right market solutions, the right people to deliver and the right platform to scale rapidly."
Adjusted basic EPS slipped to 1.5p compared with 1.7p during the first half of last year but adjusted EBITDA was "in line with management expectations" despite falling from £1.41m to £1.34m year-on-year.
Recurring managed IT services revenue represented 86 per cent of total revenue, the group said, adding that it has "invested to significantly enhance the technology" that powers its SysCloud 2.0 platform.
It said the long-term outlook remains "very positive" and that adjusted EBITDA for the current financial year will be in line with expectations.