SysGroup

SYS.L

Software - Infrastructure · Technology

Price

32.00 GBp

+0.00 (+0.00%)

Market Cap

26.8M GBp

Exchange

London Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+64.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 52.0M (2022) → 85.5M (2026)

SysGroup plc is a UK-based managed IT services and cloud hosting company. It helps small and medium-sized businesses keep their computer systems running, secure, and connected to the internet. The company offers services like cloud computing, cybersecurity, and IT support, acting as an outsourced technology department for its clients.

SysGroup makes money by charging customers recurring monthly fees for ongoing IT management and hosting contracts, which provides relatively predictable revenue. It operates entirely in the United Kingdom and is a small company, with a market value close to zero on public markets. The managed IT services space in the UK is highly fragmented, meaning SysGroup competes against many similar providers without a strong standout advantage. The company is currently unprofitable at the operating level, so its main challenge is scaling revenue fast enough to cover its costs and reach sustainable profitability before cash resources become strained.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+17.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+44.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

29.8%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$8M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

SysGroup is a rare growth stock that's already generating positive cash flow while growing at 17%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

36.8%

Modest — 36.8% gross margin

Operating Margin

-1.5%

Losing money on operations — -1.5%

ROCE

-0.7%

Weak — -0.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+7.7%

Steady sales growth (+7.7% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

0.9%

Thin free cash flow (0.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.22

Conservative — low debt load (0.22)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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