SysGroup, the Manchester-based IT services, cloud hosting and cyber security firm, lowered its full-year outlook on Tuesday as sales cycles lengthen on key accounts.

For the latest six months, the company reported revenue dipped to £10.16 million from £10.96 million a year ago, and adjusted EBITDA fell to £0.44 million from £1.57 million a year ago.

“Whilst the Group has made significant advances operationally and the high recurring nature of our revenue provides good visibility into our existing revenue base, the Group remains dependent on a few high-value projects that meaningfully impact the overall results given the Group’s current size.”

“As a result of the longer-than-expected sales cycles and the focus on core competencies and account consolidation process, the Board anticipates revenue and adjusted EBITDA for H2 FY25 will be in line with H1 FY25 and therefore performance for the year ending 31 March 2025 will be below current market expectations.”

Heejae Chae, Executive Chair, said: “Our pipeline remains strong and well-positioned for further growth as our brand awareness continues to expand. Additionally, our strong balance sheet has empowered us to execute our growth strategy, including the recent acquisition of Crossword Consulting Limited (in administration), which has expanded our cybersecurity capabilities into Compliance as a Service (“CaaS”), offering solutions such as vCISO and pen-testing.”

“I am excited about the progress we have made to date. As we celebrate milestones we’ve achieved and reflect on the challenges we’ve overcome, I take pride in how far we have come and look forward with increasing optimism as the opportunities ahead of us become evident.”