SYS1 (new ticker)
Share price: 787.5p (+1.3%)
No. shares: 12.2m
Market cap: £96m
As previously flagged, Brainjuicer has changed its name to the more professional-sounding "System1". The new ticker SYS1 is now effective and the new website, (system1group.com/) will be launched later today.
Its old website (which can still be viewed online) is very quirky and interesting, so the new one should also be worth a look.
The share rating is fairly high but it remains one of the better-quality companies on AIM, and the new name will serve to unite the company's marketing and researching brands (System1 Agency and System1 Research).
Share price: 77p (unch.)
No. shares: 26.5m
Market cap: £20m
A weak result set of results considering the scale of revenues:
- Revenue growth of 1.2% to £64.5m (2015: £63.7m)
- Operating profit before exceptional items of £1.0m (2015: £3.8m)
- Operating profit after exceptional items of £2.3m (2015: £3.8m)
The total dividend for the year is unchanged at 2.5p and is still more than twice covered by earnings.
H2 improvement: The hoped-for improvement in the second half did materialise, despite the referendum result which the company had feared, as it registered an H2 operating profit before exceptional items of £1.9m, about the same as the prior year. This was almost entirely generated by the Professional Business Services (PBS) division.
Exceptional items: The exceptional item is a £1.3 million gain from inflation-capping the company's final salary pension schemes.
It's always refreshing to see exceptional items which improve the results, as it feels like in 99% of cases they are costs which the company wishes it hadn't incurred!
Outlook statement is positive:
The year for both our divisions has started more strongly than in 2016. We have some inflationary costs to absorb which our budgets allow for. Your management and staff alike strive to always deliver a service that is second to none, and on your behalf I thank them. We plan for continued growth in 2017.
Total Comprehensive Income
It's essential to look through the financial statements for the details which get left out of the headline numbers.
In this case, I immediately see that the company suffered an £8 million actuarial loss on its pension scheme (despite the inflation-capping measure, mentioned above).
Losses such as this aren't included in the income statement, instead they're in the…
Disclaimer:All my own views. I am not regulated by the FSA. No advice.