SysGroup PLC (AIM:SYS), the multi award-winning managed IT services and cloud hosting provider is pleased to announce its final results for the year ended 31 March 2019.
HIGHLIGHTS
Financial
- Revenue increased by 22% to £12.77m (2018: £10.45m)
– £9.47m of revenue is recurring in nature (2018: £7.13m) - Adjusted EBITDA1 increased by 41% to £1.41m (2018: £1.0m)
- Adjusted PBT2 growth of 39% to £0.75m (2018: £0.54m)
- Cash generated from operations3 increased 50% to £1.21m (2018: £0.80m)
- Net cash/(debt)4 of £0.47m (2018: £(0.92m))
2019 | 2018 | Change (%) | |
Revenue | £12.77m | £10.45m | +22% |
Recurring revenue % of total revenue | 74% | 68% | +6% |
Gross Margin | £7.78m | £5.99m | +30% |
Gross Margin % | 61% | 57% | +4% |
Adjusted EBITDA1 | £1.41m | £1.00m | +41% |
Adjusted PBT2 | £0.75m | £0.54m | +39% |
Adjusted Basic EPS5 | 3.1p | 2.3p | +35% |
Statutory loss before tax | £(0.83)m | £(0.01)m | – |
Basic EPS | (2.8)p | 1.0p | – |
Net cash/(debt)4 | £0.47m | £(0.92)m | – |
Operational
- Acquisition of Certus IT Limited in February 2019 for initial consideration of £8.0m
- Successful placing of new ordinary shares raising £10.0m (gross) in February 2019
- New 5-year bank facilities consisting of:
– £1.75m term loan
– £3.25m acquisition revolving credit facility - Implementation of Employee EMI Share Option Scheme
- Completion of office refurbishment programme
Post period-end developments
- Acquisition of Hub Network Services Limited for £1.45m in cash
- Won Autotask International Partner of the Year 2019 Award
- Certus IT acquired on a cash free debt free basis resulting in a post completion adjustment to the initial consideration of £0.25m cash returned to the Group
1Adjusted EBITDA, is earnings before interest, taxation, depreciation, amortisation of intangible assets, exceptional items, fair value adjustments and share based payments.
2Adjusted profit before tax (“Adjusted PBT”) is profit before tax after adding back amortisation of intangible assets, exceptional items, fair value adjustments and share based payments.
3Cash generated from operations represents Operational cashflows adjusted to exclude cashflows for exceptional items
4Net cash/(debt) represents cash balances less bank loans, finance lease liabilities and contingent consideration.
5Adjusted Basic EPS is profit after tax after adding back amortisation of intangible assets, exceptional items, fair value adjustments, share based payments and associated tax.
Adam Binks, Chief Executive Officer commented:
“I am delighted to announce another solid year for the Group, in which we delivered double digit growth in revenue and adjusted profit as well as achieving a number of strategic milestones. Our scale, customer base and geographical coverage have grown considerably and, importantly, so too has the quality of our revenue streams. We are beginning to see the benefits of our investment in sales and marketing and are well positioned to meet the complex requirements of our customers and prospects. The post period acquisition of Hub Network Services announced earlier this week also further underpins our capabilities in being able to source and deliver complementary acquisitions which is pivotal to the successful delivery of our stated strategy.”
“The momentum achieved in the year has carried over into the start of the new financial year, and with the growth expected to continue, I remain optimistic for the future.“
sysgroup