25th Nov 2019 10:49
(Alliance News) - IT services and cloud company SysGroup PLC reported a "strong" interim performance on Monday, with recurring revenue continuing to rise.
SysGroup's revenue for the six months to September was GBP9.3 million, 60% higher than a year before, with recurring revenue now making up 80% of that total compared to 68% in April 2018.
That comparable date was the time Chief Executive Adam Binks joined the firm, SysGroup noted.
Liverpool-based SysGroup's pretax loss was flat at GBP400,000, though adjusted pretax profit doubled year-on-year to GBP650,000.
CEO Binks commented: "I am pleased to report SysGroup continues to deliver strongly against its stated strategy, with recurring revenue now representing almost 80% of our total income compared to 68% when I stepped into the CEO role in April 2018.
"The acquisition of HNS has supplemented the acquisition of Certus which we completed in second-half 2018 and was our largest acquisition to date."
"The successful execution of these transactions demonstrates our capability to identify and attract good businesses, together with the capability to successfully integrate them as we build out our operational infrastructure to scale up the business," he continued.
Certus IT was bought for GBP8 million in cash, with Hub Network Services, or HNS, purchased for GBP1.5 million.
Looking forward, Binks said the company has been meeting expectations since the end of its first half.
The shares were 2.8% lower on Monday morning in London at a price of 35.00 pence each.
By George Collard; [email protected]
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