SysGroup plc, a technology firm specialising in the delivery and management of cloud, data, and security services, has announced its unaudited results for the first half of the fiscal year ending 30 September 2024. The company, recognised for its approach in artificial intelligence and machine learning, detailed substantial operational progress, including a successful £11.2 million equity placing which was oversubscribed. This capital boost is aimed at supporting the strategic future of the company.
During this period, SysGroup invested in its technical capabilities, enhancing its solutions across the AWS and Azure platforms and expanding its research and development resources in India and Eastern Europe. Notably, the company advanced to AWS Advanced Tier Service Partner and was invited to present an AI transformation project at the AWS re:Invent conference in Las Vegas, which attracted over 50,000 attendees. The company also secured its status as one of only two UK Zscaler Managed Security Service Partners and was elevated to CyberArk’s Advanced Partner level.
Financially, SysGroup reported revenues of £10.16 million, a slight decrease from the previous year’s £10.96 million, with managed IT services recurring revenue now making up 86% of total revenue. The gross margin was reported at 49.6%, with an adjusted EBITDA of £0.44 million. Despite these figures, the company recorded a statutory loss before tax of £1.09 million, consistent with the loss from the same period the previous year. However, there was a notable improvement in cash position, with net cash of £4.63 million, a significant improvement from a net debt of £3.43 million the year before.
Looking forward, while SysGroup has progressed operationally and benefits from high recurring revenue, it remains dependent on a few high-value projects. The sales cycles have been longer than expected, and with a focus on core competencies and account consolidation, the Board anticipates that revenue and adjusted EBITDA for the second half of FY25 will align with H1 results, predicting a performance for the year that might fall below market expectations. Despite these challenges, the Board is optimistic about the strategic positioning of the Group to capitalise on forthcoming opportunities.
Heejae Chae, Executive Chair, commented on the period: “The past six months have been the most transformative and pivotal period for the Group. The equity raise in June provided us with a robust financial foundation enabling strategic investments in the technology and capabilities necessary to accelerate our mission of becoming the partner of choice for small and medium-sized businesses on their data journey.
“We have successfully developed five technology towers, including comprehensive cloud solutions across AWS and Azure. Within just six months of joining AWS as a registered partner, we achieved Advanced Tier Partner status. This milestone not only enhances our credibility but also allows us to co-market with AWS and access critical marketing funds essential for thriving in the hyper-cloud ecosystem.”
Image: investor relations at SysGroup
