SysGroup FY revenues grow on strong H2 performance

30th Apr 2024 11:33

(Sharecast News) - Data solutions business SysGroup said on Tuesday that revenues had grown in the second half, offsetting a modest H1 decline.

SysGroup full-year group revenues increased 5% to £22.7m, driven by a "significant" 14% increase in the second half, which offset a 3% decline in the first half.

The AIM-listed company stated it had continued to maintain the momentum into the new financial year and at the end of April, closed its second-largest contract ever, totalling £2.2m of revenue over three years, providing cyber security managed services to a leading challenger bank.

SysGroup also said that following "significant investment" in technology and people to support its strategic growth, it now expects to report adjusted underlying earnings of approximately £2.0m.

The company finished the year with a gross cash balance of £1.9m, down from £4.2m a year earlier, and a net debt position of £3.4m, up from £1.3m twelve months prior.

Executive chair Heejae Chae said: "Our strategy, execution and leadership has been totally transformed over the past nine months since I joined the group. We have set a strategic vision to become the premier end-to-end data solution provider for small and medium-sized businesses embarking on their AI/ML journey.

"We believe that we are ideally positioned to participate in the most consequential development in technology. Evidence is becoming indisputable that adoption of AI is no longer an option for businesses. However, the challenge for SMBs to embark on the AI/data journey is significant. Our vision is to be the partner of choice for the UK business in their transformation."

As of 1130 BST, SysGroup shares had rallied 10.93% to 33.84p.

Reporting by Iain Gilbert at Sharecast.com