26th Jun 2023 12:38
(Alliance News) - SysGroup PLC reported on Monday a sharp rise in annual revenue following two significant acquisitions last year, and affirmed its optimism for the year ahead.
SysGroup, a Liverpool-based IT services, cybersecurity, and cloud hosting provider, swung to a pretax loss for the year ended 31 March of GBP105,000 from a profit of GBP598,000 the prior year.
The company said it incurred this loss due to a GBP410,000 charge of non-recurring exceptional costs, and an increase in amortisation of acquired intangible assets by 42% to GBP1.7 million from GBP1.2 million.
Finance costs similarly rose by to GBP483,000 from GBP127,000.
Revenue increased by 47% to GBP21.6 million from GBP14.7 million the year before.
This revenue boost derived from SysGroup's acquisition of Edinburgh-based cybersecurity company Truststream Security Solutions Limited for GBP7.9 million and Orchard Computers Limited for GBP1.0 million, both of which were acquired in April last year.
"The group has delivered a robust performance with revenue and adjusted earnings before interest, tax, depreciation and amortisation increasing despite the challenging macroeconomic environment impacting all businesses," said Chief Executive Officer Adam Binks.
The company swung to a loss at a net debt position of GBP1.3 million from a net cash position of GBP3.0 million the year before.
The company reported no dividend for its financial year; unchanged from the preceding year.
SysGroup said that it is confident of its performance in the year ahead, despite the continuing challenges of the macroeconomic environment.
"We are pleased to report that trading for the first two months of the new financial year are in line with the board's expectations", said CEO Binks.
"As I look to leave the business, I have confidence that SysGroup has the right platform to succeed in today's technological world as it continues to support business of all size to find the right solutions to meet their needs."
The company says that following the departure of CEO Binks with the publication of these annual results, Heejae Chae, formerly CEO of Scapa Group PLC and Volex PLC, has now been formally appointed to the board of directors as executive chair, effectively immediately.
Shares in SysGroup fell by 2.9% at 33.00 pence in London on Monday afternoon.
By Will Neill, Alliance News reporter
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