SysGroup (SYS) AI Stock Analysis

• Market Cap: £12.13M
• Dividend Yield: N/A
• Average Volume (3M): 135.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: -7.45%
• EPS Growth: 78.23%
• Country: UK
• Employees: 112
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 83,653,694
• 10 Day Avg. Volume: 37,671
• 30 Day Avg. Volume: 135,670
• PEG Ratio: 0.11
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -11.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: 16.00p ▼(-5.88% Downside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

SysGroup's overall stock score is primarily influenced by its financial performance and technical analysis, both of which indicate challenges with profitability and bearish market momentum. However, positive corporate events, including strategic shifts and leadership confidence, provide some optimism for future growth. The valuation remains a concern due to negative earnings and lack of dividend yield.

Positive Factors

Recurring subscription revenue

A subscription-based managed services model creates durable, predictable revenue streams and higher client stickiness. Over months this supports cash flow visibility, recurring margin contribution, and provides a platform for cross-selling cybersecurity and cloud services, aiding long-term growth.

High gross profit margin

A near-49% gross margin signals a scalable service business with meaningful markup over direct costs. This structural margin provides room to invest in sales, R&D and security capabilities while preserving operating leverage as revenue recovers, supporting margin sustainability over time.

Free cash flow growth

Rising free cash flow despite earnings weakness implies the firm can convert revenue into cash, enabling reinvestment in platform and cybersecurity offerings, debt reduction, or strategic hiring. Sustained FCF growth improves financial flexibility over the coming months.

Negative Factors

Declining revenue trend

Persistent negative top-line growth reduces scale benefits critical for managed services and cloud hosting. Over several months declining revenue squeezes fixed-cost absorption, limits reinvestment capacity for product enhancements, and hampers the firm's ability to regain momentum without structural customer wins.

Negative operating cash flow

Negative operating cash flow means core services currently do not generate sufficient cash, forcing reliance on financing or non-operating items. This constrains reinvestment in infrastructure and cybersecurity, and poses a sustained risk to growth initiatives unless converted to positive operating cash generation.

Weak profitability and ROE

Negative net and EBIT margins alongside a negative ROE indicate the company is not creating shareholder value from current operations. Over months this erodes retained equity, increases difficulty raising capital on favorable terms, and pressures management to restore margin and profitability for long-term viability.

SysGroup Business Overview & Revenue Model

Company Description

SysGroup plc, together with its subsidiaries, provides managed IT and cloud hosting services in the United Kingdom and internationally. It operates through two segments, Managed IT Services and Value Added Resale. The company offers public, private, and hybrid cloud services, as well as virtual private cloud, PCI-DSS hosting, cloud desktop, and SysCloud services; managed IT services comprising managed cloud, managed infrastructure, managed IT support, managed virtual desktop, managed office 365, managed AWS, and managed azure; disaster recovery, sys-assure 365, and back up services; and IT security services, such as penetration testing, endpoint security, DDOS, email security, security awareness training, firewalls, multi factor authentication, and GDPR automation services. It also provides connectivity solutions, and IT consultancy services; and sells IT hardware, licenses, and warranties from supplier partners. The company serves charity, education, financial, government, healthcare, legal, leisure, manufacturing, retail, and tech industries. The company was formerly known as Daily Internet PLC and changed its name to SysGroup plc in July 2016. SysGroup plc was incorporated in 2007 and is based in Liverpool, the United Kingdom.

How the Company Makes Money

SysGroup generates revenue primarily through its managed IT services, which include cloud hosting, cybersecurity, and IT support. The company typically operates on a subscription-based model, allowing clients to pay a recurring fee for ongoing services. Additionally, SysGroup earns income from consulting services and project-based engagements, where clients seek specific expertise for IT deployments or upgrades. Significant partnerships with technology providers enhance its offerings and can lead to additional revenue streams through collaborative projects and integrated solutions. Overall, SysGroup's ability to adapt its services to meet client needs while maintaining strong partnerships contributes to its financial performance.

SysGroup Financial Statement Overview

Summary

SysGroup faces challenges with declining revenues and profitability, as evidenced by negative margins and net income. The balance sheet shows a stable equity position with moderate leverage, but the negative return on equity is concerning. Cash flow analysis highlights issues with operational cash generation, although free cash flow growth is a positive sign. Overall, the company needs to address its profitability and cash flow generation to improve its financial health.

Income Statement

SysGroup's income statement shows a declining revenue trend with a negative revenue growth rate of -6.41% in the most recent year. The company is struggling with profitability, as indicated by negative net profit and EBIT margins. However, the gross profit margin remains relatively stable at 48.83%, suggesting some efficiency in managing production costs.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.22, indicating a manageable level of leverage. However, the return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is not explicitly provided, but the company's equity position appears stable relative to its assets.

Cash Flow

SysGroup's cash flow statement reveals a significant increase in free cash flow growth, but operating cash flow is negative, raising concerns about cash generation from core operations. The free cash flow to net income ratio is positive, indicating that the company is generating cash despite net losses.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	20.27M	20.50M	22.71M	21.65M	14.75M	18.13M
Gross Profit	7.74M	10.01M	10.40M	11.10M	8.92M	10.50M
EBITDA	-217.00K	92.00K	-3.76M	2.52M	2.60M	2.30M
Net Income	-2.18M	-1.83M	-5.90M	-7.00K	451.00K	240.00K
Balance Sheet
Total Assets	36.37M	37.95M	30.45M	39.12M	27.56M	27.33M
Cash, Cash Equivalents and Short-Term Investments	8.12M	8.74M	1.94M	4.19M	4.13M	3.47M
Total Debt	5.06M	5.14M	5.34M	5.51M	1.14M	1.59M
Total Liabilities	13.52M	14.21M	15.68M	17.69M	6.30M	6.71M
Stockholders Equity	22.85M	23.73M	14.77M	21.43M	21.26M	20.61M
Cash Flow
Free Cash Flow	-716.00K	-1.37M	-369.00K	2.30M	1.42M	2.13M
Operating Cash Flow	-555.00K	-620.00K	190.00K	2.72M	2.31M	2.70M
Investing Cash Flow	-850.00K	-689.00K	-559.00K	-5.80M	-891.00K	-1.55M
Financing Cash Flow	-403.00K	8.11M	-1.87M	3.14M	-758.00K	-713.00K

SysGroup Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SYS, the sentiment is Negative. The current price of 17 is above the 20-day moving average (MA) of 15.24, above the 50-day MA of 15.41, and below the 200-day MA of 17.70, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 32.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SYS.

SysGroup Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYIT	76 Outperform	£705.72M	13.49	68.93%	5.54%	7.83%	2.36%
CNS	64 Neutral	£66.58M	-52.00	-9.83%	―	-5.43%	-292.31%
BKS	64 Neutral	£144.19M	48.53	7.35%	―	26.09%	32.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYS	51 Neutral	£12.13M	-5.66	-9.20%	―	-7.45%	78.23%
IOM	48 Neutral	£18.36M	-0.31	-67.57%	23.79%	25.44%	-1877.56%
CLCO	41 Neutral	£812.15K	―	―	―	―	―

SysGroup Corporate Events

SysGroup’s Saxis Unit Wins Dacorum Council IT Infrastructure Refresh

SysGroup’s recently acquired subsidiary, Saxis Group, has secured a contract with Dacorum Borough Council to deliver a full IT infrastructure refresh, following a competitive tender. The project will modernise the council’s private cloud environment, boosting performance, resilience, recoverability and cyber security to better support critical public services and future digital initiatives.

The win underscores SAXIS’s decade-long relationship with the council and highlights SysGroup’s strengthened positioning in public sector and non-profit markets. Management says the deal demonstrates the strategic value of the SAXIS acquisition, enhancing SysGroup’s infrastructure and data platform capabilities for customers with complex governance and resilience demands, and reinforcing its role in delivering mission-critical IT outcomes.

The most recent analyst rating on (GB:SYS) stock is a Hold with a £14.50 price target. To see the full list of analyst forecasts on SysGroup stock, see the GB:SYS Stock Forecast page.

SysGroup Chairman Heejae Chae Lifts Stake to 12.68% After Share Purchase

SysGroup plc announced that its Executive Chairman, Heejae Chae, has acquired 645,119 additional ordinary shares at an average price of 15.5 pence per share on the London Stock Exchange. Following this purchase, Chae’s beneficial holding has risen to 10,609,070 ordinary shares, representing approximately 12.68% of the company’s issued share capital, signalling increased board-level confidence and further aligning the chairman’s interests with those of shareholders.

The most recent analyst rating on (GB:SYS) stock is a Hold with a £14.50 price target. To see the full list of analyst forecasts on SysGroup stock, see the GB:SYS Stock Forecast page.

SysGroup Wins Expanded Three-Year Managed Network Deal with Scouts Association

SysGroup has secured a new three-year contract with the Scouts Association to deliver managed network services, following a competitive tender that expands the range of services under the company’s remit. The deal deepens a long-standing relationship, with SysGroup set to enhance visibility, assurance and operational oversight across Scouts’ national network infrastructure using its visibility-led operating model, which leverages data and AI-driven insight to reduce risk, accelerate delivery and strengthen long-term partnerships, underscoring the group’s strategic focus on higher-value, consultative engagements with major UK organisations.

The most recent analyst rating on (GB:SYS) stock is a Hold with a £14.50 price target. To see the full list of analyst forecasts on SysGroup stock, see the GB:SYS Stock Forecast page.

SysGroup acquires Saxis to bolster infrastructure and mid-market reach

SysGroup plc has acquired UK-based Saxis Group Limited, a specialist in enterprise storage, data protection and hybrid infrastructure solutions, for an initial cash consideration of £1.25 million plus a potential earn-out of up to £0.5 million, funded from existing cash resources. The deal, which brings in Saxis’s NetApp-focused expertise and a diversified customer base across public and private sectors such as media, entertainment, housing and education, is intended to broaden SysGroup’s end-to-end proposition, enhance its infrastructure technology capabilities and create cross-selling opportunities in managed services, cybersecurity and cloud. With Saxis generating around £2.1 million of revenue and £0.5 million of normalised EBITDA in the year to 29 September 2025, the acquisition underpins SysGroup’s strategy of combining organic and inorganic growth to build sustainable, profitable operations and deepen its presence in resilient, regulated markets.

The most recent analyst rating on (GB:SYS) stock is a Hold with a £17.00 price target. To see the full list of analyst forecasts on SysGroup stock, see the GB:SYS Stock Forecast page.

SysGroup Appoints AI Advisor to Drive Growth

SysGroup plc has appointed Dr. David K. Park as Advisor to the Board on Artificial Intelligence, aiming to enhance its services and accelerate growth in the IT services landscape. Dr. Park’s extensive experience in AI transformation and strategic roles is expected to help SysGroup leverage AI to strengthen its operating model and identify growth opportunities.

The most recent analyst rating on (GB:SYS) stock is a Hold with a £17.00 price target. To see the full list of analyst forecasts on SysGroup stock, see the GB:SYS Stock Forecast page.

SysGroup’s Strategic Shift and AI Integration Drive Growth

SysGroup has reported its half-year results, highlighting a strategic shift towards a consultative, end-to-end Managed IT Service Provider model, which is yielding positive outcomes. The company has seen significant growth in its cybersecurity revenue, now comprising 47% of total revenue, and has secured a major contract with a UK non-profit. AI integration across operations has improved service quality and customer satisfaction, while also reducing headcount and increasing productivity. Despite a slight decline in revenue compared to the previous year, SysGroup’s Managed IT Services are stabilizing, and the company is poised for growth in FY27, leveraging AI-driven efficiencies and a streamlined operating model.

The most recent analyst rating on (GB:SYS) stock is a Hold with a £17.00 price target. To see the full list of analyst forecasts on SysGroup stock, see the GB:SYS Stock Forecast page.

SysGroup to Announce Half Year Results for 2025

SysGroup plc has announced that it will release its Half Year Results for the period ending 30 September 2025 on 3 December 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and future operations.

The most recent analyst rating on (GB:SYS) stock is a Hold with a £17.00 price target. To see the full list of analyst forecasts on SysGroup stock, see the GB:SYS Stock Forecast page.