SysGroup has hailed a ‘total transformation of strategy, execution and leadership’ after reporting positive annual results.

The London-listed group, which earlier this year moved its headquarters from Liverpool to Manchester, specialises in the delivery and management of cloud, data and security services.

It has positioned itself as a technology partner to SMEs looking to harness artificial intelligence transformation, saying it has a growing pipeline of opportunities in this area.

For the year ended 31st March 2024, group revenues increased 5% to £22.7m, driven by a significant 14% increase in the second half of the year, and expects to report adjusted EBITDA of approximately £2m.

The group finished the year with a gross cash balance of £1.9m – compared with £4.2m in 2023 – and a net debt position of £3.4m (FY23: £1.3m). It said cash balances have been utilised to satisfy £900,000 in Truststream Year 1 earn-out and £1.5m in settlement of the contractual departure terms of former CEO Adam Binks, who left in May 2023.

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“Our strategy, execution and leadership has been totally transformed over the past nine months since I joined the group,” said executive chair Heejae Chae. 

“We have set a strategic vision to become the premier end-to-end data solution provider for small and medium sized businesses embarking on their AI/ML journey.

“In a short period of time, we have developed new capabilities in AI/ML, data management and cloud which are crucial in today’s data driven world.

“Our customers… are embracing our transformation and new capabilities as demonstrated by the double-digit organic growth following years of stagnation.”

SysGroup’s share price this morning jumped 11% to almost 34p following the news. It reached 49p during COVID but bombed to 20p for two months in late 2022 before bouncing back.

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