Managed service player SysGroup has chosen to make investments in marketing and sales and has seen revenues increase...
as it looks back on its first half.
The firm has dipped into the red as a result of the spending, but its CEO Adam Binks has been clear that the investment was needed.
For the six months ended 30 September the firm came in with pre-tax losses of £0.35m, from a position of £0.08m profit at the same point last year. Revenues increased by 47% to £5.8m. Recurring managed services represented 77.8% of total revenue, which was up by 5 percentage points y-o-y.
The firm has seen operational expenses increase as a result of the decision to plough funds into investing in sales, marketing and support.
"During the period we have focused on execution and I am pleased to report that the group has made steady progress in the first half of the year during my first period as CEO," said SySGroup CEO Binks.
"The increasing proportion of recurring revenue demonstrates the ongoing success of our strategy and position as a consultative led provider of managed IT services and cloud hosting," he added "We have continued to invest in our business, our people, our brand and in systems and as a result have a more sales focused workforce all working towards the same common goals."
The firm has made it clear that it has needed to enhance staff benefits to make sure it can not only attract but retain the talent it needs across the business.
Binks said that a couple of months into its second fiscal half the firm was already starting to see signs that the investments were bearing fruit.
"We are beginning to see the results of this investment through a strengthened pipeline and remain confident in delivering full year performance in line with current market expectations," he said.