SysGroup offers solutions in managed IT services, cloud hosting, security, connectivity. The group has offices in Liverpool, London, Bristol, Telford, and Newport. SysGroup expects revenue growth of 53% to around £19.5m, compared with £12.8m a year ago. Acquisitions of Certus IT Limited and Hub Network Services in the year provided benefits of operational efficiencies to SysGroup.
Adapting to new ways of working
According to the revenue announcement, as of March 31, 2020, the group’s cash balance was £3m, with net cash of £500,000 on a pre-IFRS 16 basis. Total facilities of £5m which will expire in 2024 supports the group’s balance. The facilities have a £1.75m term loan which currently has £300,000 of headroom and a £3.25m revolving credit facility. They serve to ensure their business continuity and support new working practices.
During the COVID-19 pandemic, SysGroup said its business continuity plans have been successfully implemented and remote working facilitated across its operations. Adam Binks, CEO of SysGroup said:
“The world has undergone material change and SysGroup is already innovating. We are adapting to new ways of working and educating our customers by sharing our experiences with them. Whilst we have not experienced any immediate impact from the COVID-19 pandemic, we are cognizant that we are likely to be affected as it continues.
I am delighted with the progress that we have continued to make throughout the course of the FY20 period and on behalf of the entire board, I would like to thank our team for their continued hard work. COVID-19 is and will continue to be, a challenging time for many and our priority remains the welfare of our team and their families.
The group is well placed to benefit from its strong levels of recurring revenue and excellent levels of cash generation; however, we remain mindful of the potential impact on trading in the coming months. The importance of workplace technology services has become even more prominent as a result of the COVID-19 pandemic and we are focused on supporting our customers through this period of global change, whilst positioning the business to take advantage of any commercial opportunities that may arise.”