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Acquisitions drive continued strong growth at tech firms

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Acquisitions drive continued strong growth at tech firms

Adam Binks


A tech firm has reported an increase in profits and revenue in its half-year results as acquisitions continue to drive growth.

The Liverpool-headquartered tech consultancy, cloud hosting, cyber security and managed services provider posted adjusted profit before tax of £1.1m for the six months ending 30 September 2022, compared to £960,000 a year before.

Revenue also jumped considerably on H1 2022, increasing by 49 per cent to £11.32m in H1 2023, up from £7.58m.

It follows a spate of expansion for SysGroup in the first half of FY23 as it completed its first two acquisitions since the onset of the coronavirus pandemic.

The £4.8m acquisition of Truststream Security Solutions Ltd helped to enhance its cyber security offering and bolster SysGroup’s presence in Scotland with the addition of its Edinburgh operations. While the £1m acquisition of Orchard Computers Ltd has strengthened its South West operations.

Now, with the latest acquisitions, SysGroup operates in six locations across the UK; Liverpool, Manchester, Newport, Bristol, Edinburgh, and London.

The successful launch of the multi-tenanted SysCloud 2.0 offering has also accelerated business growth during the last six months. It offers mid-market customers a bespoke cloud service with enhanced flexibility and security.

Looking ahead to 2023, despite an increasingly pessimistic economic outlook, growth projections remain robust for the business. The team will be continuing their work with key decision makers within their customer-base, working closely to add value through considered technology transformation.

SysGroup will also be looking to continue its recruitment drive to create additional jobs across the regions. With the recruitment market beginning to ease after a competitive year, its workforce has already returned to optimal levels, creating greater opportunities for growth of both the business and workforce over the coming year.

Adam Binks, chief executive of SysGroup, said: “We’re pleased to have delivered yet another strong six months, with recent operational investments and improvements over the last period allowing us to meet the targets we set at the start of the year. Faced with the current negative economic backdrop, technology remains crucial in helping businesses to improve efficiency and protect margins.

“The two acquisitions we made in last six months have strengthened our offering even further and seen the addition of further talent to the group. Additionally, this has brought us a new base of customers which we can service better from our enhanced footprint that now covers the whole of Great Britain.

Looking ahead, he added: “Strategic acquisitions and recruitment will continue to be a key focus for us moving forward, with impressive new talent and advanced expertise allowing us to cement our position in this highly fragmented market.”

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