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(Sharecast News) - SysGroup confirmed on Tuesday that trading for the year ended 31 March was in line with market expectations, with adjusted EBITDA of 0.9m and revenue of 20.5m, down from 22.7m in the prior year.
The technology services provider, which focuses on digital and AI transformation for UK SMEs, highlighted significant improvements in its balance sheet following a successful fundraising earlier in the year.
It said it ended the period with gross cash of 8.7m and net cash of 3.6m, a marked turnaround from the 3.4m net debt reported in the 2024 financial year.
Capital investments during the year included 1.8m to complete the earn-out for its 2022 acquisition of Truststream Security, 0.7m in capex including spend on its AI service desk platform, and 0.3m for the acquisition of Crossword Consulting's trade and assets.
"Over the past year, we have made substantial investments to position the Group as a leading provider of end-to-end solutions for SMEs on their AI and machine learning journey," said chair Heejae Chae.
"Our rapid progress in hyper-scale cloud saw us achieve AWS Advanced Partner status within six months - a significant milestone that reflects our technical strength and execution capabilities.
"We are making strong progress towards becoming the 13th AWS Managed Service Provider in the UK - this milestone will enable us to deliver the scalable, future-proof cloud foundations SMEs need to launch and accelerate their AI journey."
Chae said the company had also strengthened its cybersecurity offering, becoming one of only three UK-based Advanced Partners for Rubrik, a leader in data security and cloud data management.
"Our acquisition of Crossword Security Consulting further expands our capabilities into cybersecurity-as-a-service, penetration testing, and virtual CISO services, allowing cross-selling opportunities.
"Internally, we are transforming into an AI-led organisation, showcasing the innovation we deliver to our clients.
"Backed by a strong balance sheet, we remain well-positioned to drive growth both organically and through strategic acquisitions."
At 0804 BST, shares in SysGroup were up 1.11% at 22.75p.
Reporting by Josh White for Sharecast.com.