SysGroup PLC (AIM:SYS, AQSE:SYS) shares shed more than 27% of their value on Tuesday after the London-listed IT services provider published its half-year results.
Group revenue fell 7.3% to £10.2 million, attributed to strategic changes in its service offerings.
Gross profit came to £5 million, compared to £5.47 million in the prior period, with a slightly reduced gross margin.
Despite these challenges, the company's net cash position improved significantly thanks to an equity raise in June that brought in £11.2 million.
“The equity raise in June provided us with a robust financial foundation enabling strategic investments in the technology and capabilities necessary to accelerate our mission of becoming the partner of choice for small and medium-sized businesses on their data journey,” said executive chair Heejae Chae.
Shares were last trading at 20.66p each with an £18 million market capitalisation.