SysGroup plc (AIM:SYS), the multi award-winning managed IT services and cloud hosting provider, is pleased to announce its audited final results for the year ended 31 March 2021.
Recurring revenue as a % of total revenue
Adjusted EBITDA1 margin %
Adjusted Basic EPS3
Profit/(loss) before tax
· Demonstrated resilience and relevance throughout the pandemic
· Renewed 36 month contract with the Group's largest managed hosting customer
· Acquired businesses fully integrated and operating on a single platform
· Corporate structure simplified with Certus and HNS both hived up into a single trading entity
· Customer satisfaction consistently remained above 97%, despite lockdown challenges
Post period-end developments
· New Manchester office opened to expand sales & marketing presence and leverage northern tech hub
· Complete refurbishment of the Newport office to bring in-line with SysGroup culture and values
· EMI share options issued to all team members to align interests and to share future upside
1. Adjusted EBITDA is earnings before interest, taxation, depreciation, amortisation of intangible assets, exceptional items, and share based payments.
2. Adjusted profit before tax ("Adjusted PBT") is profit before tax after adding back amortisation of intangible assets, exceptional items, and share based payments.
3. Adjusted Basic EPS is profit after tax after adding back amortisation of intangible assets, exceptional items, share based payments and associated tax, divided by the weighted average number of shares in issue.
4. Net cash/(debt) represents cash balances less bank loans, lease liabilities and contingent consideration.
Adam Binks, Chief Executive Officer, commented:
"I am pleased to report that the business has performed well over the last year given the significant challenges posed by a full 12 month period of lockdown restrictions. Improved Adjusted EBITDA and increased net cash, despite ongoing investment for the future, reflect our high levels of recurring revenues, strong operational controls and cash flow generative model. Further I must once again pay testament to our fantastic team who have worked tirelessly throughout this exceptionally challenging time to ensure that SysGroup continues to thrive, and both the Board and I are extremely grateful for their efforts."
"As lockdown restrictions ease and greater economic certainty returns, I have no doubt that investment into IT will be a major priority for many business leaders, as the pandemic has made our industry more relevant than ever. With a clear market focus and with the operational developments made over the past year, SysGroup is well placed to take advantage of this anticipated growth. The strength of our balance sheet coupled with our supportive investor base will also enable us to continue to be a consolidator in a fragmented, growing market, and I look forward to the future with confidence."