Shares of SysGroup plc, the Liverpool-based IT services, cloud hosting and cyber security firm, rose about 13% after it published a strong trading update for the six months ended September 30, 2022, saying it expects to report revenue for H1 FY23 of £11.32 million, up from £7.58 million.
“The board is pleased to report a strong trading performance, despite the challenging macro-economic environment,” said SysGroup, which also has offices in Bristol, Edinburgh, London, Manchester and Newport.
“As previously announced, the group made the successful acquisitions of Truststream and Orchard earlier this year and the integration of both are progressing well.
“The board is pleased with the performance of both companies to date and is already seeing early signs of the potential benefits of the cross-sell opportunities.
“As such, the group expects to report revenue for H1 FY23 of £11.32m (H1 FY22: £7.58m) and adjusted EBITDA of £1.67m (H1 FY22: £1.34m), both of which are in line with current market expectations.
“Further, the group also finished the half year with a healthy gross cash balance of £4.22m (H1 FY22: £3.47m) and a net debt position of £1.92m (H1 FY22: net cash of £1.96m) excluding contingent consideration of £3.08m relating to the acquisition of Truststream.”
In its outlook, SysGroup said: “The group has maintained its trading momentum with its sales pipeline continuing to grow and the investment made in FY22 in to our new Manchester sales and marketing hub is starting to materialise.
“Whilst there is still progress to be made, the team is now at full complement and is making good progress.
“Our customers continue to rely on SysGroup as a critical supplier of managed IT services and our teams are as committed as ever to deliver the group’s services.
“The need for managed IT services remains prevalent and as businesses increasingly seek to invest in technology to increase efficiencies and improve their margins, SysGroup is ideally placed to capitalise on this growing market opportunity.
“The board is fully committed to SysGroup’s business model and remains confident that the group will meet market expectations for the full financial year.”