Sysgroup FY revenues impacted by pandemic-related deferrals

IT services firm Sysgroup said on Monday that it had continued to experience "solid trading" throughout the financial year despite ongoing economic uncertainties.

Sysgroup said revenues for the year ended 31 March were expected to come in approximately 7% lower year-on-year due to the impact of the pandemic, with customers deferring decisions on new expenditure.

However, adjusted underlying earnings were expected to be about 3% higher than prior year comparatives and "slightly ahead" of market expectations thanks to benefits stemming from acquisition synergies and tight management cost control.

The AIM-listed group also highlighted that it had a cash balance of £3.47m as of 31 March 2021, up from £3.04m at the same time a year earlier, with strong operating cash generation in the year.

Chief executive Adam Binks said: "Whilst it has been a challenging period, the pandemic has highlighted the visible need for business leaders to accelerate their own digital transformation journeys and the benefits of outsourcing managed IT services.

"Whilst we continue to assess the economic environment and impact of Covid-19, the long-term market opportunity for the Group remains buoyant, and I remain confident in the outlook for the business. I look forward to providing a further update along with the final results."

As of 0920 BST, Sysgroup shares were down 0.73% at 42.19p.