Business
Final Results for the year ended 31 March 2024
Final Results for the year ended 31 March 2024.
About this update from Sysgroup Plc
[{"type":"text","content":"\n\n \n31 July 2024\n \nSysGroup plc\n(\"SysGroup\" or the \"Group\" or the \"Company\")\nFinal results for the year ended 31 March 2024\n \nWell positioned for the future with a strong balance sheet to accelerate growth and innovation\n\n \nSysGroup plc (AIM:SYS), the technology partner for delivery and management of cloud, data and security services to power Artificial Intelligence (\"AI\") and Machine Learning (\"ML\") transformation, today announces its annual audited financial results for the year ended 31 March 2024 (\"FY24\" or \"Period\").\n \n\nFinancial Highlights\n· Revenue grew 5% to £22.7m (FY23: £21.6m) driven by growth in H2 in cybersecurity\n· Recurring revenue as a % of total revenue increased to 76% (FY23: 75%)\n· Gross margin declined to 46% (FY23: 50%) due to unmitigated supplier cost increases combined with a change in product mix\n· Adjusted EBITDA1 £2.0m (FY23: £3.1m2) driven by substantial investment in people and systems to support our new growth strategy coupled with gross margin decrease\n· Statutory loss before tax of £(6.6)m (FY23: £(0.3)m 2) driven in part by £1.8m exceptional costs (FY23: £0.4m) including upgrade of the leadership team, and £3.7m impairment of historic acquisitions (FY23: £nil), as part of the implementation of the new strategy\n· Net debt3 of £3.4m (FY23: £1.3m); increase due to payment of Truststream acquisition earn-out and settlement with former CEO\n \nStrategic & Organisational Highlights\n· Heejae Chae acquired 14% share interest and was appointed Executive Chairman\n· Repositioned as technology partner for Small Medium Businesses (\"SMBs\") in their AI and digital transformation\n· Replaced 11 senior leaders (including CEO and CFO) with 6 new talents\n· Recruited an AI team of software engineers with extensive experience in ML and data architecture and a team of cloud experts\n· Rebuilding of go-to-market organisation\n· Refreshed the Board with seasoned professionals with extensive and ...