Listed tech firm SysGroup has said it remains ‘very positive’ about its long-term outlook despite reporting a drop in half-year revenues.

The company reported revenue for the first half of the financial year of £7.58 million, 15.8% lower than H1 FY21.

However the group expects adjusted EBITDA to be £1.34 million for the period, which is in line with its management’s expectations. That compares with £1.41m in the same period a year ago. 

SysGroup ended the half-year period with a net cash position of £1.96m, which is up from £1.17m a year ago.

It said it expects IT projects and investment decisions to recover strongly once there is more certainty around the economic environment and the ongoing impact of COVID-19.

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“Whilst the economic uncertainty of last year has continued through H1 and has affected customer decision making, I am pleased to report that our adjusted EBITDA performance is in line with our expectations,” said CEO Adam Binks. 

“Our team’s dedication to delivering for our customers has been excellent and I thank them for their hard work during the first half of the year.

“The long-term outlook for our business and market remains very positive and we are continuing to see an increasing number of companies seeking to move towards Cloud rather than on-premise solutions. 

“We expect IT projects and investment decisions, as a business critical agenda item, to recover strongly once there is more certainty around the economic environment and the on-going impact of COVID-19.

“The board remains confident that adjusted EBITDA for the current financial year will be in line with its expectations.”

SysGroup highlighted robust operation performance and said it continues to benefit from lower overheads as a result of past acquisitions.

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