REG - System1 Group PLC - Trading Update

System1Announcement

21/01/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250121:nRSU0281Ua&default-theme=true

RNS Number : 0281U  System1 Group PLC  21 January 2025

 

 

 

     21 January 2025

 

 

System1 Group PLC (AIM: SYS1)

 ("System1", or "the Company", or "the Group")

Trading Update

 

 

System1, the marketing decision-making platform www.system1group.com
(http://www.system1group.com) today issues an update on trading for the
quarter ended 31 December 2024 ("Q3 FY25").

 

 Revenue £ million - unaudited        Q3    Q3    Q3     YTD   YTD   YTD
                                      FY25  FY24  % YoY  FY25  FY24  % YoY
 Predict Your (data)                  8.2   5.2   57%    21.5  14.2  51%
 Improve Your (data-led consultancy)  1.3   1.0   33%    4.7   2.9   61%
 Platform Revenue                     9.5   6.2   53%    26.2  17.1  53%
 Other consultancy (non-platform)     0.7   1.8   -62%   2.3   4.2   -45%
 Total Revenue                        10.2  8.0   26%    28.5  21.4  34%

 

 

Q3 FY25 update

System1 made further progress on delivery against the strategic review
objectives that the Board set out following its strategic review in 2022,
growing Q3 FY25 platform revenue by 53% versus Q3 FY24. Platform revenue
accounted for 93% of Total Revenue in Q3.

 

Predict Your (data) revenue grew by 57% on the comparable prior-year quarter
to £8.2m and Improve Your (data-led consultancy) revenue increased by 33%
over the comparable prior-year quarter to £1.3m, bringing total platform
revenue to £9.5m, up 53%. The increase in platform revenue reflected
consistent growth in ad testing together with completion of a large project
for a US-based client in December 2024.

Total Group revenue grew by £2.2m to £10.2 million in Q3 2025, up 26% on Q3
FY24, with strong platform revenue growth in the US, UK and APAC more than
offsetting reductions in Europe, Innovation and non-platform sales. Other
consultancy represented just 7% of Total Revenue in Q3 FY25 (Q3 FY24: 23%).

 

 

Nine Months to 31 December 2024

Predict Your (data) revenue grew by 51% on the comparable prior-year period to
£21.5m and Improve Your (data-led consultancy) revenue increased by 61% over
the comparable prior year to date to £4.7m, bringing total platform revenue
to £26.2m, up 53%. Net platform revenue retention remained broadly in line
with H1 FY25, above 110%.

 

Total Group revenue grew by £7.1m to £28.5m, up 34%, with year-to-date gross
profit margin slightly up on H1 FY25 at 88%.

 

The Group's Q3 FY25 period-end cash balance rose to £10.2m (31 December 2023:
£6.4m; 31 March 2024: £9.6m). The £0.6m dividend for FY24 was paid in
October 2024.

 

New Clients

System1 won over 120 new clients in Q3 FY25, and over 230 in the first nine
months of FY25.  These new clients contributed just over a quarter of
Platform Revenue in Q3 FY25 and included the short-form video hosting service,
TikTok; a global market leader in enterprise application software; one of
Britain's leading retailers; a US manufacturer of carbonated beverages; and a
global flag-carrier airline.

 

Innovation

System1 has appointed Tristan Findlay as Managing Director of Innovation. In
this role on the Executive Team, Tristan will lead System1's innovation
function, driving the development and growth of solutions that help brands
confidently optimise their ideas. He was previously group commercial officer
and European commercial lead for AI at Toluna. Prior to Toluna, Tristan was
chief growth officer at MMR Research, head of innovation practice
at Zappi and began his career at Nielsen Bases.

 

Outlook

System1 enters the final three months of this financial year on the back of a
record third quarter achieved while facing some economic headwinds in Europe
and the UK. The Board now believes that the Group is well placed to achieve
full-year revenue at least in line with current market expectations(1) and
deliver a full-year adjusted profit before taxation(1) of approximately £5m,
comfortably above current market expectations(1) (FY24: £3.1m).

 

Commenting on the trading update, CEO James Gregory said: "The third quarter
ended well with record platform revenue, strong revenue retention, and an
encouraging new business pipeline for the rest of the financial year. We are
making good progress with the £2m investment programme announced in our
Interim Results last month which is targeting medium-term revenue growth
through building our position in the US and revitalising System1's Innovation
proposition."

 

 

Further information on the Company can be found at www.system1group.com
(http://www.system1group.com) .

 

(1) For the purpose of this announcement, the Group believes market
expectations for FY25 to be revenue of £37m and adjusted profit before
taxation of £4.4m. Adjusted profit before taxation is statutory profit before
taxation + share-based payments.

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.

 

For further information, please contact:

 System1 Group PLC                                            Tel: +44 (0)20 7043 1000
 James Gregory, Chief Executive Officer
 Chris Willford, Chief Financial Officer

 Canaccord Genuity Limited (Nominated Adviser & Broker)       Tel: +44 (0)20 7523 8000
 Simon Bridges / Andrew Potts / Harry Rees

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTURAWRVSUAUAR