SysGroup : FY26 H1

FY 2026:

Half Year Results

6 months to 30 September 2025

Highlights Strategic shift to a consultative, end-to-end Go-To-Market ("GTM") approach is delivering tangible results

Cyber security represents a significant and fast-growing revenue stream for the Group, today comprising 47% of revenue in the period

Secured a three-year Managed IT Services and technology refresh contract with a major UK non-profit institution

Managed IT Services revenues stabilised and are now well positioned to return to growth after two years of decline

AI is now our operational model, embedding tools, workflows, and culture across the business

Significant improvement in service quality and customer satisfaction, supported by AI and operational changes

AI delivering measurable ROI - service desk reduced from 36 to 22; throughput per engineer increased 17%

Headcount reduction from 111 in FY23 to 80 by end of FY26, delivered alongside strengthening technical capabilities and successful integration of an acquisition

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Income Statement

Revenue £9.9m (H1 FY25: £10.2m)

Managed IT Services including professional services comprise 92% of total revenue (H1 FY24: 86%)

Gross margin consistent at 48.5% (H1 FY24: 49.6%)

Adjusted EBITDA1 of £0.2m (H1 FY24: £0.4m)

Statutory loss before tax of £1.59m (H1 FY24: loss before tax of

£1.09m)

1. Adjusted EBITDA is earnings before interest, taxation, depreciation, amortisation and impairment of intangible assets, exceptional items, share based payments and share scheme set up costs

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Statement of Financial Position

Total net assets £22.8m (FY25: £23.7m)

Trade and other receivables consistent at £5.3m (FY25: £5.4m)

Cash £8.1m (FY25 £8.7m)

Current liabilities increase to £8.3m (FY25: £7.0m) relates to timing on deferred revenue ("contract liabilities) and is in line with H1 FY25 (£8.0m)

Movement in treasury reserve to £0.7m (FY25: £1.0m) relates to an exercise of equity by a member of the previous management team

Movement in other reserves relates to the share option scheme

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Cashflow & Net Cash

Gross cash balances of £8.1m (31 March 2025: £8.7m)

Cash movements include:

• (i) £(0.2)m net cash from operations

• (ii) £(0.1)m final payment on Crossword acquisition

• (iii) £(0.3)m in financing charges relating to debt facility

Loan facility draw down unchanged

Net cash1 of £3.1m has moved from a net cash1 position of £3.6m

at 31 March 2025.

1. Net cash represents cash balances less bank loans and lease liabilities (excluding contingent consideration)

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Gross Margin Maintained

48.8%

48.5%

45.8%

FY24

FY25

H1 FY26

Improved Quality of Revenue

Managed Services Consultancy

H1 FY26

FY25

FY24

78%

76%

76%

10%

6%

14%

82%

86%

92%

Stronger Revenue Foundation

	63%		60%		53%
					47%
	37%		40%

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Balanced Portfolio

100%

80%

60%

40%

20%

0%

FY24

Security

FY25

Hosting & Infrastructure

H1 FY26

Cybersecurity: managed security services, disaster recovery services, cyber consultancy

Hosting & Infrastructure: managed hosting including cloud, infrastructure, connectivity and support services

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Security Driving Growth

£10.0m

£9.0m

£8.0m

£7.0m

£6.0m

£5.0m

£9.3m

£8.3m

£8.1m

£6.6m

FY23 FY24

FY25

FY26 projected

FY26 projected

Security comprises managed security services, disaster recovery services, cyber

consultancy

Churn Minimised and Positioned to Grow

£4.5m

£4.1m

£4.0m

£4.0m

£3.9m

£3.8m

£3.9m

£3.6m

£3.5m

Poised for Profitable Growth

Optimised Operating Model

£8.0m

101 FTEs

£7.1m

80 FTEs

£6.0m

£6.0m

£4.0m

Q4 25

*Q4 salary annualized

Q4 26 Projected

Q1	Q2		Q3	Q4	Q1		Q2
		FY25				FY26

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AI-enhanced Workflows

Identify key workflows such as service desk, sales, and onboarding to re-engineer and enhance the outcome. Leverage AI across interconnected tasks to maximise the impact instead of singular use cases

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Hybrid data architecture

Core datasets indexed into Snowflake, with other systems integrated directly into our LLM environment via MCP to create a unified, AI-ready data foundation.

Real-time intelligence layer

CRM, HR, ticketing, SharePoint, Finance data and GTM data surfaced into AI workflows, enabling automated decisions, faster insights and materially reduced manual effort.

AI adoption and Integration

Leverage the unprecedented pace of innovation in AI tools. Harness rapid advances in AI and aggregating the most effective tools into custom operational solutions. Build a proprietary flywheel that is scalable and becomes a built-in competitive advantage.

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AI is the Foundational Operating Model at SysGroup

AI Augmented Sales Workflow

Marketing & Outbound

• SME inputs technical details

• AI tools (ChatGPT, Copilot, etc.) rewrites into commercial language.

• Custom AI tools are used to augment our content generation pipeline including LinkedIn, email, web, and collateral

• AI segments clients into defined service categories based on need and growth opportunity

  Outcome: Faster campaign cycles, more consistent positioning, improved conversion to qualification.

  Qualification

• AI captures call/meeting notes to extract buyer needs

• CRM records created

  /updated automatically with meeting notes

• Buyer behaviour analysed to generate an intent score.

• AI summarises pain points and recommends follow up questions

  Outcome: Faster, higher-quality qualification that directs sales effort toward the prospects most likely to convert.

  Discovery & Solutioning

• AI aggregates data from ZoomInfo and other enrichment tools for the target.

• Syd helps pull the service details, technical requirements and configuration options

• GTM Hub provides relevant case studies, battle cards, collaterals

• Custom bots (Cyber, Hosting, Connectivity) answer deep customer questions to act as a technical mentor for sales

  Outcome: Faster, more accurate solutioning without SME bottlenecks

  Proposal & Negotiation

• 'Syd' generates a proposal draft using pricing, SLAs, service descriptions and contract templates stored in SharePoint

• AI legal tool reviews terms, flags risk, and proposes compliant wording

• DataRails pulls financial inputs (SAP and CRM) to autogenerate financial reports

  Outcome: Higher-quality proposals and faster close cycles with consistent commercial discipline.

  Cross-sell & Upsell

• Scan customer environments using automation tools to identify gaps, risks or misconfigurations

• Custom AI highlights cross-sell opportunities based on service history, environment maturity, and technical configurations

• AI gathers system inventory and generates a real time "client ecosystem snapshot"

Outcome: Data-driven visibility that proactively expands accounts, boosts retention, and lifts revenue per customer.

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