SysGroup returns to growth

Channel player SysGroup has been going through a transformation for the past couple of years, and has now reached the stage where the strategy has brought the business back into growth.

For the year to 31 March 2026, the firm saw revenue improve by 8% to reach £22.1m, up from £20.5m last year.

SysGroup had indicated when it shared first-half numbers in December 2025 that it expected to return to growth in its 2027 financial year, but a strong second half saw revenues improve by 17% during those six months.

The firm was able to reverse a decline in its managed services revenues, which grew by £700,000. The business also benefited from strong security sales, with that now accounting for 45% of revenue. Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) improved by 26% to £1.2m, up from £950,000 in the previous 12 months.

The fiscal year also saw SysGroup splash out £1.25m to acquire enterprise storage specialist Saxis Group, which has already contributed to growth, with 30% of contracts won cross-selling the group’s products since it was picked up in December.

At the heart of the transformation strategy that has been running for the past two years is a determination to move away from being a legacy managed service provider (MSP) to an operation that can provide customer support around key technologies, including artificial intelligence (AI) and security.

The full-year update indicated that SysGroup has embedded AI across its own business, which has already delivered improvements and £1.2m of run‐rate savings.

Heejae Chae, SysGroup executive chairman, said the positive performance demonstrated that the decision to transform the business had been the right one.

“What we have built over the past two years is not a restructured legacy MSP; it is a fundamentally different business. We have leaned fully into AI, re‐engineering how the company operates from the ground up rather than bolting technology onto old processes. AI is now operationally embedded in every function of the business, cyber security accounts for 45% of group revenue, and we have structurally reduced our cost‐to‐serve while our net promoter score has increased four times over the past two years,” he said.

“FY26 shows the model working: revenue up 8%, adjusted Ebitda up 26% and strong cash generation, all achieved in a cautious SME spending environment. This is MSP 3.0: a connected, AI‐native service model that breaks the traditional link between growth and headcount,” he added.

Chae signalled that the business had been able to keep the momentum going as it moved deeper into FY27, and that was generating optimism about prospects for the year ahead.

“We have entered FY27 on the same trajectory as H2 FY26, and that momentum has been maintained in the early months of the new financial year. The board remains confident of making further progress. The board expects to exceed market expectations for FY27,” he said.

The results also included notification from Owen Phillips, chief financial officer (CFO), of his intention to step down from the board with immediate effect to pursue a fresh opportunity. The plan is for an orderly handover, with Craig Ormesher taking up the role of interim CFO.