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Acquisitions filter into impressive growth at SysGroup
Managed service player’s outgoing CEO is able to share a robust set of results from the managed service provider
Adam Binks has been able to share a decent set of full-year numbers for his final time as CEO at managed service player SysGroup.
He announced his departure from the firm last month, ending a five-year stint in the role and nine years at the business, but his name is on the full-year numbers for the 12 months ended 31 March.
Revenues improved by 47%, coming in at £21.65m, up from £14.75m. The firm also trimmed its pre-tax losses to £0.10m from £0.60m.
Managed IT services revenues grew by £4.6m to £17.4m, but reduced as a percentage of Group revenues to 80.6% compared with 87.1% a year earlier.
That decrease could be explained by a doubling in VAR sales, which was a positive indication of customers showing willingness to make IT investments.
The period saw the firm seal two acquisitions last April: Truststream for up to £7.9m, to bolster its Scottish and security offering, and Orchard for £1m, strengthening south-west operations. Both contributed positively to the latest set of results.
Since the fiscal year closed, the announcement of Binks’ departure has been made, and the business also revealed a fresh go-to-market strategy has been launched to simplify messaging to prospects and customers.
Having the right technologies
In his CEO statement, Binks said the strategy was based on having the right technologies, and that it already had high levels of client retention and customer satisfaction.
“For the final time, I am delighted to report a positive set of results to the market,” he said. “It’s been yet another challenging period with many external headwinds, however, we have pushed hard and continued to flourish, demonstrated by the positive organic growth that has been achieved.
“Whilst I am sad to be leaving the Group, I am confident that now is the right time for me to step aside as I leave a solid legacy behind that allows the Group to continue to grow,” added Binks.
He also indicated that the business had kept the momentum going into its latest fiscal year, and had come through April and May in good shape.
“The Group has made a good start to the new financial year, with the first two months of the period both in line with the Board’s expectations, which is testament to the hard work of the brilliant team that we have built over the years,” said Binks. “I wish the team well for the future and look forward to continuing to watch SysGroup go from strength to strength.”
He said the business would consider further M&A activity as it looked for further growth opportunities, but that would be under different leadership as his time at the helm came to an end.
“The foundations created through investment during my time as CEO has placed SysGroup in a strong position to capitalise on the market opportunity as it executes against its growth strategy,” said Binks. “The seamless integration of Truststream and Orchard serves to evidence the strength of this position, and our ability to bring in complementary businesses which will expand our addressable market, generate new client relationships and be immediately earnings-enhancing for the Group.”
