An IT services, cyber security and cloud hosting provider, whose clients include Home Bargains, Screwfix and Sega, said that “post-acquisition synergies” led to a fall in headcount during its latest financial year.
AIM-listed SysGroup added that it had a “slightly higher vacancy rate in the face of a challenging recruitment market” and that it also made no use of the government furlough scheme throughout the Covid period.
The Liverpool-headquartered company confirmed its adjusted operating expenses for the 12 months to March 31, 2021, totalled £6.1m, £1.49m lower than in the previous financial year.
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The group said the “main driver” for the fall was the reduction in employee costs as its headcount reduced.
During the year SysGroup opened a new office in Manchester and closed its base in Telford.
It added: “Other overhead costs were well managed throughout the year and we continued to invest into strategic areas of value such as employee training and development and the ESG programme”.
SysGroup also confirmed that its revenue decreased by almost 20% to £14.75m while its pre-tax profits rose from £210,000 to £600,000.
Following the end of its financial year, the group announced the acquisitions of Truststream Security Solutions and Independent Network Solutions, which trades as Orchard Computers.
Chief executive Adam Binks said: “The adjusted EBITDA performance and strong cash generation in a year when turnover was impacted by Covid highlights the strength of our business model.
“We have invested to drive future growth whilst maintaining prudent financial discipline throughout the business.
“Operationally, the group is ideally placed to take advantage of conditions as they begin to normalise and we have started to see the early green shoots of such a recovery.
“The acquisitions of Truststream and Orchard added further customers, expertise and geographical reach and demonstrate our ongoing commitment to be consolidators in this highly fragmented market.
“M&A activity in our sector is picking up and we believe there will be further opportunities that we can take advantage of during the course of this year.
“With a clear strategy for both organic and inorganic growth, the board is confident in the future.”
