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SysGroup losses down to £1m+ but trading ‘steady’

SysGroup

Liverpool managed IT, cyber security and cloud hosting services provider SysGroup has reported a statutory pre-tax loss of £1.09m alongside decreased revenue in its half-year results.

Revenue was down to £10.96m, from £11.3m the previous year, while adjusted pre-tax profit was £990,000, down from £1.1m the previous year..

Operationally, the company said it strengthened its senior management team with individuals with “invaluable experience and expertise from industry leading companies”.

Chair Heejae Chae said: “We have made significant investments in both technology and people. We have recruited a team of ML engineers from industry leaders such as AWS, JP Morgan, Validus and McLaren. We have significantly strengthened the senior management team to help take us on this journey, bringing together the right skillsets and mindsets.

“Throughout the organisation, we are reinforcing a culture of customer focus and outstanding service underpinned by innovation, entrepreneurialism and high performance. Whilst we are at the early stage of our journey, I am excited at the potential of what we are building at SysGroup combined with the considerable unexploited market opportunity that lays ahead of us.

“Finally, the core business, which has more than 80 per cent recurring revenues provides a very solid base from which we can expand, giving us very good revenue certainty and visibility, albeit that in the short term we may see our overall bottom line performance impacted marginally, reflecting the investment we are making in the company to drive revenue growth in future financial years.”

The results were in line with SysGroup’s predictions at the beginning of November when the group said in an update that performance had been steady, but predicted decreased revenues, citing factors including payments made to satisfy the Truststream year one earn-out, the acquisition of 2,076,394 ordinary SysGroup shares now held in treasury, and the settlement of the former CEO’s contractual terms.

Chae said at the time that enhancing the company’s AI offering would prove crucial to its future success: ““We believe the most effective way to deliver…is to provide an end-to-end data solution including data engineering, networking, storage, analytics and, of course, security.

“Leveraging our existing capabilities, we will invest in our operational capability and put the building blocks in place to become the partner of choice in the AI adoption journey.”

The group also announced several key appointments at the time of that report, including Heinrich Koorts as chief revenue officer, formerly of Softcat; Ross Humphrey as chief AI officer, formerly of JP Morgan and Rebura; Paul Sullivan as chief technology officer, previously with SysGroup and Truststream, and Wendy Baker as general counsel and company secretary, formerly of Scapa Group.

SysGroup has a head office in Liverpool and offices in Manchester, Edinburgh, London, Bristol and Newport.

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