OMG Short

Over reaction …

 

Sysgroup  19p  £15.64m (SYS)

 

The technology partner for delivery and management of cloud, data, and security services to power Artificial Intelligence and Machine Learning transformation, announces Interims to September 2024 and reduced expectations for the Y/E March 2025.

 

The new management  raised £11.2m at 33p in June to support the growth plan and have invested in technical capabilities to deliver end to end solution across the entire data landscape including full cloud solutions. It won its second largest contract and acquired Crossword Consulting, a cybersecurity consulting from administration.

 

The interims, however, report a 7% decline in turnover at to £10.16m with an unchanged loss before tax of £1.09m, and cash of £4.63m.  The full year to March 202 5 is however dependent on a few high-value projects and because of the longer-than-expected sales cycles the Board anticipates performance will be below current market expectations.

 

Significant progress is being made in the transformation journey, the CEO reports, and a strong foundation for sustainable growth is being established with Managed IT Services improving to 86% of revenues with a strong pipeline so well-positioned for  growth,

 

Comment: This seems a buying opportunity.

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