SysGroup PLC Trading and COVID-19 Update (1138K)
20 Aprile 2020 - 8:00AM
UK Regulatory
TIDMSYS
RNS Number : 1138K
SysGroup PLC
20 April 2020
20 April 2020
SysGroup plc
("SysGroup" or the "Group")
Trading and COVID-19 Update
SysGroup PLC (AIM:SYS), the multi award-winning Managed IT
Services and Cloud Hosting provider, is pleased to provide a
trading update for the year ended 31 March 2020, together with an
update on the impact of the COVID-19 virus.
Group trading performance
The Group's trading for the year is in line with the Board's
expectations, with performance underpinned by high levels of
recurring revenue. The Group expects to report revenue growth of
53% to c.GBP19.5m (FY19: GBP12.8m) with adjusted EBITDA increasing
by 99% to c.GBP2.8m (FY19: GBP1.4m) supported by the contributions
of the acquisitions of Certus IT Limited and Hub Network Services
Limited in the year, as well as the benefits of operational
efficiencies. Recurring revenues now represent 77% of the Group's
total revenue (FY19: 74%) as the Group continues to focus on the
provision of end-to-end Managed IT Services.
As at 31 March 2020 the Group's cash balance was GBP3.0m with
net cash of GBP0.5m on a pre IFRS 16 basis.
The Group's balance sheet is supported by total facilities of
GBP5.0m expiring in 2024. The facilities consist of a GBP1.75m term
loan which currently has GBP0.3m of headroom and a GBP3.25m
revolving credit facility ("RCF"). The RCF is currently undrawn,
providing the Group with additional available liquidity to execute
on acquisition opportunities that may arise as a result of this
unprecedented period of uncertainty.
As we enter the new financial year, the Group will continue to
benefit from its high levels of recurring revenues, underpinned by
a robust balance sheet. Our services are mission critical to our
customers, particularly in the current environment and we have
worked tirelessly to ensure their business continuity and support
new working practices.
Impact of COVID-19 and outlook
Our number one priority is the health and wellbeing of our team
and their families whilst continuing to support our customers. Our
business continuity plans have been successfully implemented and
remote working facilitated across our operations.
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. We are
immensely proud of how our team has adapted overnight and has
continued to support our customers, a small number of whom are
experiencing significant business disruption.
Whilst we have not experienced any immediate impact from the
COVID-19 pandemic, we are cognisant that we are likely to be
affected as it continues. Our ability to mobilise our sales teams,
technical engineers and consultants will of course be restricted
during the period of lockdown. It would also not be unreasonable to
expect a delay to customers committing to major asset refreshes and
contract renewals until they have established the impact of
COVID-19 to their own businesses.
Given the current uncertainty, the Group does not believe it is
prudent to provide guidance on the financial year to 31 March 2021
at this stage. We will continue to provide shareholders with
updates as the situation progresses.
Adam Binks, Chief Executive Officer, commented:
"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 to 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."
For further information please Tel: 0151 559
contact: 1777
SysGroup Plc
Adam Binks, Chief Executive
Officer
Martin Audcent, Chief Financial
Officer
Shore Capital (Nomad and Broker) Tel: 020 7408
Corporate Finance: 4090
Edward Mansfield / Daniel
Bush
Corporate Broking:
Fiona Conroy
Alma PR (Financial PR) Tel: 07780 901979
Josh Royston / Helena Bogle
About SysGroup
SysGroup is a leading provider of Managed IT Services, Cloud
Hosting, and expert IT Consultancy. The Group delivers solutions
that enable clients to understand and benefit from industry leading
technologies and advanced hosting capabilities. SysGroup focuses on
a customer's strategic and operational requirements - enabling
clients to free up resources, grow their core business and avoid
the distractions and complexity of delivering IT services.
The Group has offices in Liverpool, London, Newport, Bristol and
Telford.
For more information, visit http://www.sysgroupplc.com
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END
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