Tue, 19 Apr 2022 | BUSINESS NEWS
IT firm SysGroup says that it is continuing to plan for organic and acquisitive growth, despite being set to post a drop in revenues. The group said that it expects its trading update for the period to March 31 2022 to show a decline in revenue, as customers push back plans to invest in IT-related projects.
The Liverpool-based company provides managed IT services, IT consultancy, cloud migration and hosting, as well as cyber security for a range of high-profile clients including Sega, Screwfix, Admiral, Holiday Inn and Home Bargains.
Despite seeing its turnover impacted by external factors affecting the wider IT sector during the COVID-19 pandemic, SysGroup has also said that it expects to report adjusted EBITDA of £2.8 million, which the company says is broadly “in line with market expectations”. The company also added that it has strong revenues from managed services and sustainable margins.
According to SysGroup, its EBITDA figures reflect the business’ underlying strength, as a result of its strong operational management and acquisition synergies. Due to this, the company says it is in a position to continue targeting organic and acquisitive growth.
CEO Adam Binks 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."
Edinburgh-headquartered Trustream, a managed cyber security services provider, was acquired earlier this month in a deal potentially rising to £8.5 million.
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