SysGroup plc has reported a drop in annual sales and EBITDA.
For the year ended 31st March 2025, the tech transformation specialist reported revenues of £20.5m (FY24: £22.7m) and adjusted EBITDA of £900,000 (FY24 £2m), which it said was in line with market expectations.
Last year it raised £10.6m in a share placing to transition into an AI-led organisation after moving its headquarters from Liverpool to Manchester.
SysGroup said that following the fundraise it had spent £1.8m on the final earn-out payment for the 2022 acquisition of Truststream Security; £700,000 in capital expenditure, including investment in its bespoke AI service desk platform; and £300,000 for the acquisition of the trade and assets of Crossword Consulting Limited.
The group ended the financial year with a strong gross cash balance of £8.7m and a net cash position of £3.6m.
“Over the past year, we have made substantial investments to position the group as a leading provider of end-to-end solutions for SMEs on their AI and machine learning journey,” said Heejae Chae, executive chair.
“Our rapid progress in hyper-scale cloud saw us achieve AWS Advanced Partner status within six months – a significant milestone that reflects our technical strength and execution capabilities. We are making strong progress towards becoming the 13th AWS Managed Service Provider in the UK.
“This milestone will enable us to deliver the scalable, future-proof cloud foundations SMEs need to launch and accelerate their AI journey. We have also strengthened our cybersecurity offering, becoming one of only three UK-based Advanced Partners for Rubrik, a leader in data security and cloud data management.
“Our acquisition of Crossword Security Consulting further expands our capabilities into Cybersecurity-as-a-Service, penetration testing, and virtual CISO services, allowing cross-selling opportunities.
“Internally, we are transforming into an AI-led organisation, showcasing the innovation we deliver to our clients. Backed by a strong balance sheet, we remain well-positioned to drive growth both organically and through strategic acquisitions.
“Our investments in people and capabilities have positioned us for continued progress in the new financial year. We are building a robust pipeline and deepening our customer relationships to become the partner of choice across their entire technology estate, supporting their growth journey.”