SysGroup revenue hammered by Covid - but MSP is 'confident for future'

The IT services, cyber security and cloud hosting provider has revealed its final results for the period ended 31 March 2022

SysGroup has said it is "confident in the future" despite seeing a decline in revenue in its latest financial results.

The IT services, cyber security and cloud hosting provider has revealed its final trading results for the period ended 31 March 2022.

It posted a total revenue of £14.75m, 19 per cent down on its 2021 figure of £18.13m.

But the company's profits fared much better, posting an adjusted EBITDA of £2.82m, which was just down three per cent on the previous year.

SysGroup says its turnover was impacted by coronavirus but felt the "strong" cash generation and adjusted EBITDA performance in the last year shows "the strength of our business model".

"We have invested to drive future growth whilst maintaining prudent financial discipline throughout the business," CEO Adam Binks said.

"Operationally, the group is ideally placed to take advantage of conditions as they begin to normalise and we have started to see the early green shoots of such a recovery."

Despite seeing a decrease of revenue, SysGroup reported £2.99m of net cash in its latest trading update, compared to £1.88m last year.

And the company said its acquisitions of Truststream and Orchard is expected to be "immediately earnings enhancing".

Binks added: "The acquisitions of Truststream and Orchard added further customers, expertise and geographical reach and demonstrate our ongoing commitment to be consolidators in this highly fragmented market.

"M&A activity in our sector is picking up and we believe there will be further opportunities that we can take advantage of during the course of this year. With a clear strategy for both organic and inorganic growth, the Board is confident in the future."