SysGroup upbeat despite fall in revenues
Chief executive of listed Liverpool IT services firm SysGroup predicts strong growth despite effects of pandemic hitting annual revenues. Tony McDonough reports
Liverpool IT and cloud services business SysGroup is reporting a 19% fall in annual revenues but insists it is seeing ‘green shoots’ of recovery.
In the 12 months to March 31, 2022, which is based in Exchange Flags in the city centre, saw revenues fall from £18.13m last year to £14.75m. However, there was an increase in pre-tax profit from £210,000 to £600,000.
Adjusted EBIDTA (an alternative measure of profitability) dropped 3% from £2.91m to £2.82m. Already this year the firm has completed two acquisitions, both of which it says will be revenue-enhancing.
In April AIM-listed SysGroup bought Edinburgh-based Truststream Security Solutions in an £8m deal. And in the same month it completed the £1m purchase of Bristol-based IT services firm Orchard Computers.
The company has also opened a unified sales and marketing in Manchester. It plans a number of “highly targeted” campaigns for the next 12 months to “drive new customer engagement and continue to build a sales pipeline”.
Chief executive Adam Binks said: :”The Adjusted EBITDA performance and strong cash generation in a year when turnover was impacted by COVID highlights the strength of our business model.
“We have invested to drive future growth whilst maintaining prudent financial discipline throughout the business. Operationally, the group is ideally placed to take advantage of conditions as they begin to normalise. We have started to see the early green shoots of such a recovery.
“The acquisitions of Truststream and Orchard added further customers, expertise and geographical reach. They 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 this year. With a clear strategy for both organic and inorganic growth, the board is confident in the future.”