A North West-based IT services and cloud hosting provider has increased revenues by over 50% and almost doubled its profits.
SysGroup, which is headquartered in Liverpool, has posted record revenues of £19.5m and profits of £2.8m - increases of 53% and 99% respectively - in its annual results announced today.
The firm said it was significant that 77% of its income came from recurring revenues from long-term service agreements, adding that the strong growth had come from increased demand from companies "continuing on the journey of digital transformation".
That was a trend which grew "dramatically" at the end of the year with lockdown and the need for customers to rapidly implement remote working, it said.
Growth also comes after SysGroup bought managed connectivity company Hub Network Services in June last year.
The results released today were for the year to March 31, and CEO Adam Binks said: “We delivered increased revenues and EBITDA, whilst integrating our largest acquisition to date, which rounds out our capability to help our customers transform their businesses; a capability that was pressure-tested by lockdown at the end of the financial year.
"Despite Covid-19 dominating the end of the year I have been impressed with how the team have stepped up to support and service our customers during these challenging circumstances with our core operational model supporting the rapid switch to remote working.
“While there is still some uncertainty around the impact of Covid-19, we believe it has presented us with significant opportunities.
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"We have seen an accelerated shift towards remote working solutions for our customers, alongside a decentralisation of their core IT infrastructure towards more flexible and more resilient configurations. Investment in the appropriate cloud technology is becoming ever more mission-critical for businesses to survive and thrive.”
As well as Hub Network Services, the firm bought Certus Technology Group the year before, meaning it now manages locations across the country in London, Liverpool, Newport, Telford and Bristol.
Mr Binks added: “The past year has been dramatic in more ways than one. We enjoyed rapid growth and another successful acquisition, then ended the year with lockdown. We reacted quickly to the changing conditions.
"By reorganising the entire operation to remote working, while ensuring continuity of service we have demonstrated what is achievable with the right mix of agile technology services and skills.”
Mr Binks said he remained optimistic for his company's, post-Covid future.
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He said: "As we look ahead, I remain optimistic for continued growth, supported by a robust balance sheet, a diverse customer base and the growing relevance of our solutions.
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"We will be focusing on those organisations that have learned the lessons of lockdown and need a trusted partner to help them transition through the complexities of the technological landscape.
"Those organisations that think this was just a blip and go back to the old ways of doing things will not survive in our new world."