SysGroup PLC Trading Update and Notice of Results (4924I)
April 19 2022 - 2:01AM
UK Regulatory
TIDMSYS
RNS Number : 4924I
SysGroup PLC
19 April 2022
19 April 2022
SysGroup plc
("SysGroup" or the "Group")
Trading Update
Notice of Results
Full year Adjusted EBITDA in line with expectations
SysGroup plc (AIM:SYS), the multi award-winning m anaged IT
services, cyber security and cloud hosting provider , is pleased to
provide a trading update for the period ended 31 March 2022,
together with a notice of results.
Group trading performance
Despite the external challenges faced throughout our industry
over the last 2 years, the Group expects to report Adjusted
EBITDA(1) of GBP2.8m for the period ended 31 March 2022 which is in
line with market expectations.
This is despite the expected decline in revenue compared to the
prior period, as customers continued to defer spending on enhanced
IT projects. The Adjusted EBITDA performance reflects the
underlying strength of our business with strong operational
management and the full year benefit of acquisition synergies,
supported further by the quality of our managed services revenues
and sustainable margins.
Further, it is pleasing to note that the Group has maintained
its track record of solid cash generation, ending the financial
year with GBP3.0m of net cash which is ahead of market
expectation.
Outlook
Encouragingly, during the latter part of H2 FY22, we have
started to see enhanced trading conditions with both new and
existing clients. Whilst not yet at pre-pandemic levels, customers
are once again starting to feel confident to commit to spending on
enhancements to their essential IT services. Coupled with the
acquisition of Truststream, which has added further capabilities to
our managed security service offering, the Group is well positioned
to deepen it existing client relationships and is looking forward
to the future.
Notice of results
SysGroup expects to publish its full year results for the period
ended 31 March 2022 on 20 June 2022.
Adam Binks, Chief Executive Officer, commented:
"This is a very robust performance given the headwinds faced for
a prolonged period of time. Our business has proved to be resilient
which reflects both the quality of our offering and the core nature
of the services that we provide.
The strong EBITDA performance and cash generation demonstrate
the operational strength and financial discipline of the Group and
investments in prior periods mean that we are ready to scale as
conditions improve. We will do so both organically and through
further earnings enhancing M&A, as evidenced by the post year
end acquisition of Truststream Security Solutions.
We have started to see the first green shoots of recovery in
customer spending and look forward to the future with
confidence."
Notes
1. Adjusted EBITDA is earnings before interest, taxation,
depreciation, amortisation of intangible assets, exceptional items
and share based payments.
For further information please
contact:
Tel: 0151 559
SysGroup plc 1777
Adam Binks, Chief Executive
Officer
Martin Audcent, Chief Financial
Officer
Zeus (Nominated Adviser and Tel: 0161 831
Broker) 1512
Dan Bate
James Edis
Alma PR (Financial PR) Tel: 07780 901
Josh Royston 979
Matthew Young
About SysGroup
SysGroup is a leading provider of managed IT services, cloud
hosting, cyber security and expert IT consultancy. The Group
delivers solutions that enable clients to benefit from industry
leading technologies and delivers managed solutions with security,
compliance and governance from the core. SysGroup focuses on a
customer's strategic and operational requirements - enabling
clients to free up resources, grow their core business and avoid
the distractions and complexity of managing IT services.
The Group has offices in Edinburgh, Liverpool, London,
Manchester, Newport and Telford.
For more information, visit http://www.sysgroup.com
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