Morning all,
A very quiet day in RNS-land today. Which is helpful seeing as I've been occupied with a wide range of administrative chores. Being self-employed can be very complicated, as I'm sure some of you will appreciate!
Anyway, that's my excuses out of the way.
Today we have interim results from System1 Group, a company that is no longer in my investible universe but which I'm happy to keep half an eye on.
I can't see anything else of interest so I suppose this is the bit where I take requests and ask if there is anything from earlier in the week that I missed?
Cheers
Graham
System1 (LON:SYS1)
- Share price: 195p (+8%)
- No. of shares: 13 million
- Market cap: £25 million
Let's see how Brainju... I mean, System 1, has been doing recently:
This table says it all:
The key points are as follows:
- revenues and gross profits down, but...
- underlying overheads also down significantly, with average headcount down by 19%, so we get a much improved underlying PBT result from consulting activities (£1.92 million vs. £1.1 million).
- System1 breaks out the £1.09 million spend on developing its new Ad Ratings product, so that we can treat it separately. That's fair enough.
- The result this period also benefits from the lack of any share-based payments. Good.
So what are the most important numbers in this table? I would say that the £1.9 million in underlying PBT from Consulting is the most important one.
We do have to bear in mind that this figure is before share-based payments, which are likely to feature again in Systems1's future.
It's still a decent result and makes the shares look modestly priced with a £25million-odd market cap.
AdRatings: £1.59 million in total has been spent developing this new business line. Of that amount £1.09 mllion was expensed (i.e. included on the income statement) while the rest was capitalised (i.e. recorded as an asset on the balance sheet).
Cash: System1 has historically had a very strong balance sheet and cash pile. With the increased investment, cash reduces to £3.55 million. That's still plenty for a company of this size.
Dividend: unchanged for now, but the final dividend may be reduced.
CEO comment: excited about the new Ad Ratings service, and thinks the existing business "will continue to stabilise and in…
Unlock the rest of this article with a 14 day trial
Already have an account?
Login here