Sysgroup PLC

First-pass take

SysGroup positions explicitly at the intersection of cybersecurity and AI, targeting SME adoption tailwinds, with internal AI platform investment (£0.57m capitalized). However, AI revenue is not yet material. Operating leverage is absent: EBITDA margin collapsed to 4.6% (FY25) from 8.8% (FY24) despite improved gross margin (49% vs 46%) and recurring revenue mix (86% of total). No valuation multiples disclosed. Net cash £3.6m provides downside buffer, but negative operating cash flow (£0.62m) is concerning.