Revenues fall at SysGroup but expansion continues

Based in Liverpool and operating across the country, IT services provider SysGroup says its pandemic performance has showed ‘resilience’ and it is continuing to create jobs. Tony McDonough reports

Adam Binks
Adam Binks, chief executive of SysGroup

 

IT and cloud services business SysGroup is reporting falling annual revenues and flat profits but says it is anticipating a rise in demand as thew UK gets back to normal.

Based in Exchange Flags in Liverpool centre, AIM-listed SysGroup is reporting revenues for the year to March 31, 2021, of £18.1m. This is 7% down on the £19.5m achieved in the previous year.

Gross profit fell 6% from £11.2m to £10.5m while the company returned to a pre-tax profit of £210,000 and recording a loss of £230,000 last year. Chief executive Adam Binks said the results demonstrated the “resilience” of the business agency the backdrop of the COVID-19 pandemic.

“The business has performed well over the last year given the significant challenges posed by a full 12-month period of lockdown restrictions,” said Mr Binks. “Improved profit and steady revenue figures, despite ongoing investment for the future growth of SysGroup, reflect our high levels of recurring revenues and strong operational controls.”

With a headcount of 125, SysGroup also has offices in London, Newport and Telford. And, it has recently announced an expansion into Manchester city centre which will become the firm’s northern sales and marketing hub. It will create 10 new jobs in the first 12 months and this will double to 20 in the next three years.

The business offers IT services to customers across sectors including financial services, insurance, retail, technology, not-for-profit, education and healthcare. Current clients include the Liverpool-based owner of retailer Home Bargains, TJ Morris, Admiral and Confused.com.

In the last three years, Mr Binks has led a number of transactions, including the £9m purchase of Certus IT in February 2019, Hub Network Services for £1.45m in June 2019 and Telford-based Rockford IT in 2018. These mergers have enabled SysGroup to expand into South Wales and Telford.

He added: “The pandemic has made our industry more relevant than ever so as lockdown restrictions ease and greater economic certainty returns, I have no doubt that IT spend will exceed all previous levels.

“With a clear market focus and with the operational developments made over the past year, SysGroup is well placed to take advantage of this growth.

“The strength of our balance sheet and supportive investor base will also enable us to continue to be a consolidator in a fragmented, growing market, and I look forward to the future with confidence.”

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