A fall in revenue is expected at a Liverpool-headquartered IT services, cyber security and cloud hosting provider, whose clients include Home Bargains, Screwfix and Sega, despite its profits meeting market forecasts.
AIM-listed SysGroup has confirmed its adjusted EBITDA for the 12 months to March 31, 2020, is expected to be £2.8m.
In an update, the group said the total has been achieved "despite the expected decline in revenue compared to the prior period, as customers continued to defer spending on enhanced IT projects".
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It added: "The Adjusted EBITDA performance reflects the underlying strength of our business with strong operational management and the full year benefit of acquisition synergies, supported further by the quality of our managed services revenues and sustainable margins.
"Further, it is pleasing to note that the group has maintained its track record of solid cash generation, ending the financial year with £3m of net cash which is ahead of market expectation."
The trading update comes after the group recently announced the acquisition of an Edinburgh-based company in a deal worth up to £8.5m.
On its outlook, SysGroup said: "Encouragingly, during the latter part of H2 FY22, we have started to see enhanced trading conditions with both new and existing clients.
"Whilst not yet at pre-pandemic levels, customers are once again starting to feel confident to commit to spending on enhancements to their essential IT services.
"Coupled with the acquisition of Truststream, which has added further capabilities to our managed security service offering, the group is well positioned to deepen it existing client relationships and is looking forward to the future."
Chief executive Adam Binks added: "This is a very robust performance given the headwinds faced for a prolonged period of time.
"Our business has proved to be resilient which reflects both the quality of our offering and the core nature of the services that we provide.
"The strong EBITDA performance and cash generation demonstrate the operational strength and financial discipline of the group and investments in prior periods mean that we are ready to scale as conditions improve.
"We will do so both organically and through further earnings enhancing M&A, as evidenced by the post year end acquisition of Truststream Security Solutions.
"We have started to see the first green shoots of recovery in customer spending and look forward to the future with confidence."
