SysGroup PLC on Monday reported that it swung to an interim loss as its costs increased, but said it still expects its 2023 trading to be in line with expectations.
The Liverpool-based IT services, cyber security and cloud hosting provider said it posted an interim pretax loss of £194,000 in the six months that ended September 30 from a profit of £250,000 a year ago.
This was because while interim revenue grew by 49% to £11.3 million from £7.6 million, interim cost of sales also increased by 90% to £5.7 million from £3.0 million, alongside a 30% rise in interim administrative expenses to £5.6 million from £4.3 million.
‘I am pleased to deliver results in line with expectations as the group benefits from the operational investments and improvements that have been made over prior periods. Technology can help businesses improve efficiency and protect margins which is increasingly relevant when set against the current economic backdrop,’ said Chief Executive Officer Adam Binks
SysGroup also noted further potential for cross selling and client growth.
It labelled the acquisitions of Truststream Security Solutions and Orchard Computers for up to £7.9 million and £1.0 million respectively as operational highlights, alongside the launch of its SysCloud 2.0 platform.
It said it was still confident that trading for the 2023 financial year would be in line with expectations following these acquisitions. The acquisitions brought a new base of customers covering the whole of the UK.
Shares in SysGroup were trading 7.0% higher at 31.56 pence in London on Monday afternoon.
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