Year End Trading Update

In brief · summary, not quotable

SysGroup plc has announced its financial year 2026 trading update, reporting revenue of £22.1 million, a 7.6% increase from the previous year, driven by a strong second half which saw revenue grow by 17.2%, including £1.1 million from the Saxis Group Limited acquisition. The company expects to report Adjusted EBITDA of £1.2 million for FY26, exceeding market expectations, and ended the year with gross cash of £7.7 million and a net cash position of £2.7 million after accounting for acquisition costs.

Full announcement

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SysGroup plc (AIM:SYS), the trusted partner for cloud, cybersecurity, and AI enablement, delivering end to end solutions at the intersection of cybersecurity and digital transformation for the UK mid-market, is pleased to provide a trading update for the financial year ended 31 March 2026 ("FY26").

Trading Performance

Group revenue increased by 7.6% to £22.1m (FY25: £20.5m), driven by a stronger second half of the financial year. Revenue in H2 increased by 17.2% compared with the same period in FY25, including £1.1m from the Saxis Group Limited ("Saxis") acquisition which completed in December 2025. On an organic basis, H2 revenue grew by 7.0% year on year.

The Group expects to report Adjusted EBITDA1 of £1.2m for FY26 (FY25: £0.9m; H1 FY26: £0.2m), ahead of current market expectations.

The Group ended the year with gross cash of £7.7m (FY25: £8.7m) and a net cash2 position of £2.7m (FY25: £3.6m), following the payment of £1.3m in cash consideration relating to the acquisition of Saxis.

Heejae Chae, Executive Chair of SysGroup, says:

"FY26 has been a year of disciplined execution and clear progress for SysGroup. A stronger second half, supported by improved go-to-market effectiveness and continued demand in cybersecurity, has driven full-year performance ahead of expectations.

During the second half, we implemented a number of operational and strategic changes, including the increased use of AI across our go-to-market and service delivery activities. The early benefits of these changes began to come through in Q4 and provide a stronger platform for the business as we enter the new financial year.

With improved profitability, a robust cash position, and enhanced capabilities following the Saxis acquisition, we have entered FY27 with positive momentum. This update marks an important milestone ahead of our full year results in July, where we will provide further detail on performance and outlook."

Notes

Adjusted EBITDA is earnings before interest, taxation, depreciation, amortisation of intangible assets, exceptional items share-based payments and share scheme set up costs.
Net cash/(debt) represents cash balances less bank loans and lease liabilities, excluding contingent consideration of £0.5m relating to the Saxis acquisition.

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