Revenues spike almost 50 per cent for SysGroup in FY23

The company saw its CEO Adam Binks depart in April

AIM-listed solutions provider SysGroup has logged an almost 50 per cent leap in revenues in its full-year results for the period ended 31 March 2023.

The reseller said it met expectations with revenue growth of 47 per cent to £21.6m (FY22: £14.7m).

Gross profit was up 24 per cent to £11m for the period.

The Liverpool-HQ company attributed its revenue spike to a combination of six per cent organic growth alongside its successful acquisitions of Truststream and Orchard, both in April 2022.

Truststream was snapped up for £7.9m, adding an Edinburgh location to its roster and bolstering SysGroup's cybersecurity offering.

While its £1m buy of Orchard strengthened the SysGroup operations in the south west.

Other well performing areas include the group's managed IT services business, which saw revenues swell 35 per cent from £12.8m in FY22 to £17.4m, making up 80.6 per cent of total group revenues.

Meanwhile VAR sales more than doubled during the period to £4.2m (FY22: £1.9m).

SysGroup said that although the increased proportion of VAR impacts the gross margin, it is a reassuring signal that companies are once again committing to IT spend.

The company's CEO Adam Binks recently announced he is stepping down from his role after five years.

In his farewell to SysGroup on a high note, Binks said:

"For the final time, I am delighted to report a positive set of results to the market. I am grateful to the entire team for their drive and commitment to helping SysGroup continue on its growth journey.

"It's been yet another challenging period with many external headwinds, however, we have pushed hard and continued to flourish, demonstrated by the positive organic growth that has been achieved.

"Whilst I am sad to be leaving the group, I am confident that now is the right time for me to step aside as I leave a solid legacy behind that allows the group to continue to grow."
Binks added that trading for the first two months of the new financial year are in line with the board's expectations.

"As we continue to invest in our expanded service offering, while remaining committed to exploring further appropriate M&A opportunities, we have great confidence in the mid-term outlook for the group," Binks said.