SysGroup acquisitions deliver in H1 2022

Managed service player has seen immediate benefits from the deals it struck earlier this year

Managed services provider SysGroup has pointed to its acquisition strategy as a major contributor to a 15% increase in profits in its half-year numbers.

The channel player shared details of its performance for the six months to 30 September, with profits increasing to £1.1m, up from £0.96m in the first half of 2022. Revenue also climbed, increasing by 49% to £11.32m, up from £7.58m.

Recurring managed IT services revenue represented 75% of total revenue, with the firm reporting positive results from sales and marketing initiatives at its Manchester hub, with a growing pipeline of opportunities.

One of the main features of the firm’s first half was the two acquisitions it sealed to help support further growth and expansion of the business.

The £4.8m acquisition of Truststream Security Solutions provided more security expertise and provided more of a presence in Scotland, while the £1m acquisition of Orchard Computers gave more reach for the business in the south-west.

Both deals were able to immediately enhance earnings and were integrated as a result of SysGroup’s Project Fusion approach, bringing together back-office functions to make sure everyone is on a unified platform.

The deals have given SysGroup the opportunity to add more locations to its Liverpool headquarters, with it now able to target customers from London, Manchester, Newport, Bristol and Edinburgh.

Organically, the main development in the first six months has been the launch of SysCloud 2.0, which is targeting mid-market customers looking for flexibility and security.

Although the economic headwinds are getting gloomier, the firm is determined to keep recruitment going and add to its staffing numbers. It is also following a strategy of getting close to customers to ensure it can help them through the year ahead.

“We’re pleased to have delivered yet another strong six months, with recent operational investments and improvements over the last period allowing us to meet the targets we set at the start of the year. Faced with the current negative economic backdrop, technology remains crucial in helping businesses to improve efficiency and protect margins,” said Adam Binks, CEO of SysGroup.

“The two acquisitions we made in the last six months have strengthened our offering even further and seen the addition of further talent to the group. Additionally, this has brought us a new base of customers which we can service better from our enhanced footprint that now covers the whole of Great Britain,” he added.

Binks indicated that the firm would continue to follow the existing strategy as it continued into its fiscal year and looked further ahead. 

“Strategic acquisitions and recruitment will continue to be a key focus for us moving forward, with impressive new talent and advanced expertise allowing us to cement our position in this highly fragmented market,” he said.

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