SysGroup predicts 16% revenue dip for H1

SysGroup is predicting a 15.8% drop in revenue for the first half of 2021, due to the ongoing impact of the pandemic.

Managed IT Services and Cloud Hosting provider is expecting to report revenues of £7.58m for H1 2021, down from £9.01m a year prior.

In the trading update, SysGroup explains that its customers have continued to defer and curtail expenditure decisions because of the pandemic and noted that its sales teams have continued to face restrictions in their ability to have in-person interactions with customers and prospects to develop the sales pipeline.

SysGroup expects adjusted EBITDA to be £1.34m compared to £1.41m last year.

CEO Adam Binks said: "Whilst the economic uncertainty of last year has continued through H1 and has affected customer decision making, our adjusted EBITDA performance is in line with expectations.

"The long-term outlook for our business and market remains very positive and we are continuing to see an increasing number of companies seeking to move towards Cloud rather than on-premise solutions.”

 

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