1 November 2023

SysGroup plc

("SysGroup" or the "Group")

AIM: SYS

Trading Update & Notice of Results

SysGroup plc (AIM:SYS), the managed IT services, cyber security and cloud hosting provider, is today providing an update on the Group's performance for the six months ended 30 September 2023 ("H1 FY24" or the "Period").

Group trading performance

The Group has delivered a steady trading performance for the Period delivering growth in high value Managed IT services revenue, which has been offset by lower Value-Added Resale ("VAR") sales.  Overall, this has resulted in slightly lower Group revenue when compared to the same period in the prior year. The Group is expecting to report revenue for H1 FY24 of £10.96m (H1 FY23: £11.32m) and Adjusted EBITDA¹ of £1.56m (H1 FY23: £1.68m).

At the end of the Period the Group's gross cash was £1.98m (H1 FY23: £4.22m) following payments to satisfy the Truststream year one earn-out, acquisition of 2,076,394 ordinary SysGroup shares (now held in Treasury) and the settlement of the former CEO's contractual terms. Net debt² at the end of the Period was £3.43m (H1 FY23: £1.92m) and excludes future contingent consideration of £1.84m (H1 FY23: £2.93m).

Organisational Changes

SysGroup plc is pleased to announce the following appointments to strengthen its senior management team as it focuses on delivering an end-to-end data solution.

·      Heinrich Koorts - Chief Revenue Officer (formerly Softcat plc)

·      Ross Humphrey - Chief AI Officer (formerly JP Morgan/Rebura)

·      Paul Sullivan - Chief Technology Officer (SysGroup/Truststream)

·      Wendy Baker - General Counsel and Company Secretary (formerly Scapa Group plc)

Heejae Chae, Executive Chair, commented:

"During the past six months, we have assessed the market opportunities and our competitive position.  We recognise that most companies today are grappling with how to leverage Artificial Intelligence (AI). Whilst the potential benefits are compelling, it is not clear to many as to what these benefits are and how they can achieve them. Companies are looking for a partner who can help them build a compelling business case for AI as well as help them achieve data maturity in a cost-efficient way as they modernise their existing platform.  We believe the most effective way to deliver such a result 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.  We look forward to expanding further on our strategy when we publish our half year results."

Notice of results

SysGroup expects to publish its half year results for the six-month period ended 30 September 2023 on 27 November 2023.

Notes

1.        Adjusted EBITDA is earnings before interest, taxation, depreciation, amortisation of intangible assets, exceptional items and share based payments.

2.        Net debt represents cash balances less bank loans and lease liabilities.

About SysGroup

SysGroup is a leading provider of managed IT services, cloud hosting, cyber security and expert IT consultancy. The Group delivers solutions that enable clients to benefit from industry leading technologies and delivers managed solutions with security, compliance and governance from the core. SysGroup focuses on a customer's strategic and operational requirements - enabling clients to free up resources, grow their core business and avoid the distractions and complexity of managing IT services.

The Group has offices in Bristol, Edinburgh, Liverpool, London, Manchester and Newport.

For more information, visit http://www.sysgroup.com