14th Dec 2016 09:09
LONDON (Alliance News) - IT managed services provider and cloud services firm SysGroup PLC on Wednesday reported a wider loss for the financial half-year to the end of September due to one-off costs related to the sale of one of its divisions.
SysGroup in July agreed to sell its SME mass market business for GBP2.7 million in cash to a unit of Host Europe Group. The company had said the sale would allow it to focus on its higher-value managed services operations.
The company reported a pretax loss of GBP551,000 for the half-year, widened from GBP209,000 a year before, driven by one-off costs from its restructuring and the disposal.
Adjusted earnings before interest, tax, depreciation and amortisation from SysGroup's continuing operations, excluding the SME mass market arm, rose to GBP233,000 from GBP27,000 a year before.
Total revenue, including the disposed-of business, was GBP3.4 million, up 40% from GBP2.4 million, as growth was offset by weaker revenue from the SME mass market arm. Revenue from continuing operations more than doubled to GBP2.7 million from GBP1.3 million a year before.
SysGroup said it benefited from organic growth in its Managed Hosting division, plus benefits from the acquisition of System Professional Ltd. That purchase prompted the change of name to SysGroup from Daily Internet earlier this year.
"We are pleased with the progress we have made during the period in transforming the focus of the company to that of a managed services provider while at the same time delivering a solid set of results," said Chief Executive Chris Evans.
"With the expected benefits from the integration of Sys-Pro into the group and the increasing number of opportunities we are seeing in the market, we believe the group is well-positioned to deliver on the objectives we have set ourselves for the remainder of the year and beyond," he added.
Separately on Wednesday, SysGroup said its Netplan Internet Solutions Ltd subsidiary has won a contract with software firm Epicor to be the sole authorised partner for Epicor BisTrack in the UK and Ireland.
BisTrack is a resource planning system for distributors, merchants and wholesalers. No financial details on the partnership were disclosed.
Shares in SysGroup were untraded on Wednesday, having last traded at 50.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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