Acquisitions fuel SysGroup revenues
Managed services player posts half year numbers with significant revenue increases
Managed service specialist SysGroup has made no secret of its ambitions to grow through acquisition and its latest set of half yearly numbers show that the strategy is increasing revenue.
For the six months to 30 September the firm increased its revenues by 60% to come in at £9.3m with recurring managed services representing 79.7% of that business. The group held its losses to £0.37m, compared to £0.35m in the previous year.
SysGroup is on a quest to reach £10m of EBIDTA by the end of financial year 2023 and these results showed good progress on that front with the number for H1 coming in at £1.18m, an increase on the same period last year of 111.2%.
During H1 the firm acquired Hub Network Services for £1.45m and then integrated that operation into the business in under three months. The firm also rolled out a customer engagement plan to keep on top of tracking user satisfaction levels.
The HNS acquisition came on the back of a deal to pick up Certus IT in February and has helped the Group increase its revenues, head count and managed services portfolio.
"SysGroup continues to deliver strongly against its stated strategy, with recurring revenues now representing almost 80% of our total income compared to 68% when I stepped into the CEO role in April 2018. The acquisition of HNS has supplemented the acquisition of Certus which we completed in H2 2018 and was our largest acquisition to date. The successful execution of these transactions demonstrates our capability to identify and attract good businesses, together with the capability to successfully integrate them as we build out our operational infrastructure to scale up the business," said Adam Binks, CEO of SysGroup.
He added that the firm now had a headcount of 130, more than double what he started with when he came in as CEO 18 months ago.
"SysGroup is moving forward at pace and is taking its place in the market as a serious contender. I thank each and every one of the team that strive each day to help make SysGroup one of the leading MSPs in the UK and give me the confidence to report that the Company continues to trade in line with management's expectations," said Binks.
