SysGroup PLC (AIM:SYS), the multi award-winning Managed IT Services and Cloud Hosting provider, is pleased to announce its unaudited half year results for the six months ended 30 September 2019 (H1 2020).
Financial highlights
· Revenue increased 60.0% to £9.3m (H1 2019: £5.8m)
· Recurring Managed IT Services represented 79.7% of total revenue (H1 2019: 77.8%)
· Adjusted EBITDA1 increased 111.2% to £1.18m (H1 2019: £0.56m)
· Adjusted profit before tax2 of £0.65m (H1 2019: £0.26m)
· Statutory loss before tax of £0.37m (H1 2019: loss of £0.35m)
· Adjusted basic EPS3 of 1.1p (H1 2019: 1.1p)
· Basic loss per share of 0.9p (H1 2019: loss per share 1.4p)
· Adjusted cash generated from operations4 increased 106% to £1.1m (H1 2019: £0.5m)
· Cash of £2.65m at 30 September 2019 (30 September 2018: £1.15m)
· Net (debt)5 at 30 September 2019 of £(0.72)m (30 September 2018: £(0.84)m)
Operational highlights
· Acquisition of Hub Network Services Limited (“HNS”) for £1.45m
· Integration of HNS completed in under three months
· Introduction of Customer Engagement plan demonstrating >97% satisfaction
· Planned closure of legacy Coventry office and datacentre complete
Post-period highlights
· Martin Audcent awarded North West Finance Director of the year 2019
Adam Binks, Chief Executive Officer, commented:
“I am pleased to report that SysGroup continues to deliver strongly against its stated strategy, with recurring revenues 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 H2 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.
Supported by a team of more than 130 individuals, SysGroup is moving forward at pace and is taking its place in the market as a serious contender. I thank each and every one of the team that strive each day to help make SysGroup one of the leading MSPs in the UK and give me the confidence to report that the Company continues to trade in line with management’s expectations.”
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