Jun 20, 2022

20 Jun 2022 Adam Binks Managed IT services and cloud hosting provider SysGroup has posted a fall in revenues after being impacted by Covid-19. However chief executive Adam Binks said the business will be looking at opportunities from M&A activity to drive growth. For the period ended 31 March 2022, the company saw revenues drop by 19 per cent from £18.13m to £14.75m. However pre-tax profits did rise by 192 per cent, up from £210,000 to £600,000. Adjusted EBIDTA dropped 3 per cent from £2.91m to £2.82m. Recently, the group has also acquired Edinburgh-based Trustream Security Solutions Ltd - a fast-growing provider of cyber security services. It has also snapped up Independent Network Solutions Ltd, which trades as Orchard Computers, further enhancing the group's presence in the South West and complementing its South Wales-based operations. Operationally, it said a unified sales and marketing hub opened in Manchester with a number of "highly-targeted" campaigns planned for FY23 to drive new customer engagement and continue to build sales pipeline. Office rationalisation was also complete with a refurbishment programme in Newport and closure of its Telford base. Adam Binks noted the adjusted EBIDTA performance and strong cash generation in a year when turnover by impacted by Covid-19 "highlights the strength of the business model". "We have invested to drive future growth whilst maintaining prudent financial discipline throughout the business," he said. "Operationally, the group is ideally placed to take advantage of conditions as they begin to normalise and we have started to see the early green shoots of such a recovery." "The acquisitions of Truststream and Orchard added further customers, expertise and geographical reach and demonstrate our ongoing commitment to be consolidators in this highly fragmented market. "  Looking ahead, he added: "M&A activity in our sector is picking up and we believe there will be further opportunities that we can take advantage of during the course of this year. With a clear strategy for both organic and inorganic growth, the board is confident in the future." SysGroup's headquarters are at Walker House, Exchange Flags, Liverpool but it also has a presence in London, Newport and Manchester. TAGS