Source - SMW
IT services provider SysGroup said it expected its annual adjusted earnings to double, owing to acquisitions and higher recurring revenue, though it warned the Covid-19 crisis could cause contract renewal delays.

Adjusted earnings before interest, tax, depreciation and amortisation for the year through March was seen rising 99% to about £2.8m.

Revenue was expected to climb 55% to about £19.5m, supported by the acquisitions of Certus IT and Hub Network Services.

'Whilst we have not experienced any immediate impact from the Covid-19 pandemic, we are cognisant that we are likely to be affected as it continues,' SysGroup said.

'Our ability to mobilise our sales teams, technical engineers and consultants will of course be restricted during the period of lockdown.'

'It would also not be unreasonable to expect a delay to customers committing to major asset refreshes and contract renewals until they have established the impact of Covid-19 to their own businesses.

'Given the current uncertainty, the group does not believe it is prudent to provide guidance on the financial year to 31 March 2021 at this stage.'

'We will continue to provide shareholders with updates as the situation progresses.'

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