REG - System1 Group PLC - Interim Results
30/11/2022 07:00
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RNS Number : 0035I System1 Group PLC 30 November 2022
Press Release
30 November 2022
System1 Group PLC (AIM: SYS1)
("System1" or "the Group" or "the Company")
Unaudited interim results for the six months ended 30 September 2022
System1 Group announces its unaudited interim results for the six months ended
30 September 2022 ("H1") and provides an update on its strategic review (the
"Review").
Sep-22 Sep-21 Change**
£m £m %
Management Basis*
Revenue 10.5 12.4 -15%
Gross Profit 8.5 10.4 -18%
Adjusted Operating Costs (8.9) (9.1) -2%
Adjusted (Loss)/Profit before Taxation (0.4) 1.3 -131%
Statutory Basis
Revenue 10.5 12.4 -15%
Gross Profit 8.5 10.4 -18%
Operating Costs (8.6) (9.2) -6%
Other Operating Income 0.1 0.1 -15%
Profit before Taxation 0.0 1.3 -100%
Income Tax Expense (0.2) (0.2) 15%
(Loss)/Profit for the Period (0.2) 1.1 -119%
Diluted Earnings per Share (1.7p) 8.8p
* Adjusted Operating Costs exclude impairment, interest, share based payments,
bonuses, severance costs, and government support. Adjusted figures exclude
items, positive and negative, that impede easy understanding of underlying
performance.
** Percentages and totals are based on numbers rounded to £'000s
H1 Highlights
· Data revenue (Test Your Ad, Test Your Brand, Test Your Idea) grew 38%
on H1 last year to £6.2m and represented 59% of total revenue.
· New product launches in the period: Test Your Idea (TYI) automated
early-stage innovation testing and Test Your Ad Static.
· 85 new data customers in H1 (of which 11 TYI), 155 repeating data
customers (who purchased data products during the previous financial year)
· Gross profit margin 81.5% (H1 2021/22: 83.9%).
· Adjusted Operating Costs reduced by 2% (Statutory down 6%); average
H1 headcount up 4% to 152 (H1 2021/22: 146).
· £0.4m Adjusted operating loss; break even statutory profit before
tax.
· £0.2m Tax charge in the period related to non-UK subsidiaries.
· £6.6m Net Cash as at 30 September 2022 (31 March 2022: £8.7m).
· Diluted and basic loss per share (1.7p) (H1 2021/22 diluted and basic
earnings per share: 8.8p).
Current Trading & Outlook
· Second half of the year has started well, and we expect H2 revenue to
exceed H1.
· Board is mindful of the current economic environment, particularly in
Europe.
· Higher H1 exit run-rate for expenditure, combined with exchange rate
and inflationary pressures are likely to increase expenditure and erode
profitability in H2.
Strategic Review - Introduction
On 31 August the Board announced a review of its strategic options for growing
the business and increasing shareholder value. Today we provide an update on
progress. The Review has validated our existing successful focus on automated
'Test Your' and 'Improve Your' services for testing and improving creative
content, including all forms of advertising and product innovations,
underpinned by our world-leading IP, brand tracking and Ad Ratings database.
· Our Unique Selling Proposition is 'Predictiveness', offered at market
beating speed and value.
· We will focus increasingly on automated testing of digital ad formats
to generate growth, as well as continuing to support TV, Audio, Print and
Outdoor formats.
· We will continue to target the world's largest advertisers with the
aim to generate greater recurring and repeating revenues.
· In addition, significantly increase our focus on commercial
partnerships with major ad platforms/media owners such as LinkedIn and ITV.
These platforms provide the Company with access to multiple advertisers at
significantly reduced customer acquisition costs.
· Furthermore, we will target advertising & media agency groups,
such as Omnicom/BBDO, and professional service firms who provide advertising
effectiveness advice to multiple clients, with a view to including our 'Test
Your' and 'Improve Your' products in their suite of service recommendations,
again reducing customer acquisition costs.
· We will significantly increase our focus on the US market which
offers the greatest potential for rapid growth given the size of its
advertising and digital media owner marketplace.
· In terms of financial metrics, our goal is to become a 'Rule of 40'
company, whereby we will target the sum of our data revenue growth rate and
adjusted EBITDA margin to be in excess of 40%, delivering a value enhancing
blend of growth and return. In the near future the balance will favour Data
revenue growth, as demonstrated in the 38% year-on-year increase in H1.
· In line with the focus on Data revenue growth, we are cancelling the
£1.5m buyback tender offer announced in June, in order to provide more growth
capital for the business.
Strategic Review - Personnel Changes
· John Kearon, currently Founder and CEO, will become Founder &
President from 1 December, with the priority task of securing new business and
partnership opportunities in the US, where he will spend most of the first
half of 2023. John will no longer act as CEO but will remain a director of the
Company.
· James Gregory, currently COO, will be appointed CEO from 1 December
to lead the execution of the new strategy, complete our digital transformation
and scale the business. He will be appointed to the Board at the earliest
opportunity following completion of the usual regulatory procedures, and a
further announcement will follow in due course.
· The Board will seek to appoint an adviser in the US with expertise in
digital media to assist with the development of growth plans in that area. The
search for this individual is underway with an appointment expected in Q1
2023.
· More broadly, the Company will seek to retain, find, and develop the
people who can execute our growth plans, with particular emphasis on the US
partnerships and digital.
Strategic Review Longer-Term Objectives
· Longer-term our ambition is to attract small business customers with a
self-serve product, but in the short to medium term we will reach this
customer segment via commercial partners such as LinkedIn.
· Our Test Your and Improve Your products would suit a SaaS business
model and, longer term, a subscription revenue model is highly attractive to
us. Any transition to this, however, will only be when we have lowered our
customer acquisition costs; and in agreement with our customers to transact
that way. Importantly, our tech platform is already capable of handling such a
switch.
· We are close to the completion of our joint Artificial Intelligence
project with the University of Warwick and will launch the second phase after
publishing the results of phase one.
Strategic Review - Next Steps
· We will provide an update as and when there are further developments.
· Information on implementation of the Strategic Review will be
presented at a Capital Markets Day on 28 February 2023.
System1 Founder and CEO John Kearon commented:
"Our transformation to a digital/data-led business is well underway, and the
Review has identified opportunities to leverage our platform and extend our
reach via commercial partnerships. We believe the US market offers us the
greatest opportunity, which is why I am going to spend more time there to
focus on new business. I am delighted that James Gregory has agreed to succeed
me as CEO - he is the ideal person to deliver the new strategy for the benefit
of all stakeholders.
System1 now has the opportunity to 'punch above our weight' - we are global
industry thought leaders with a superb, proven suite of products. We
outperform our competitors on the key measure of 'predictiveness' as well as
on speed and cost. We have a great client list - but we need to grow it a lot
more, take the opportunity to do more business with all our customers and
expand our routes to market. That way we will grow our revenues significantly,
have much more recurring and repeating activity, and significantly grow the
value of the business. The System1 team is energised and excited to pursue the
growth opportunities ahead of us".
Further information on the Company and the implementation of the Strategic
Review to follow at 28 February Capital Markets Day.
Further information on the Company can be found at system1group.com.
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
John Kearon, Founder and CEO
Chris Willford, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser & Broker) Tel: +44 (0)20 7523 8000
Simon Bridges / Andrew Potts
Interim Statement
Financial Performance
The continuing decline in our complex consultancy products (44% down on H1
last year) led to headline revenue being down by 15%, despite encouraging
progress in our "Test Your" product suite (Data) which increased by 38% to
£6.2m and now Data revenue represents just under 60% of company revenue. We
had 240 Data customers in H1, of which 85 were new. The Innovation product
group saw the biggest relative decline in total revenue versus last year,
reflecting the later availability of an automated solution (TYI launched in
May) in that category. Brand grew 14% year on year due mainly to the
successful launch of TYB in the Americas. By region, the UK and Europe were
affected by customers' budgetary response to the Ukraine invasion and
associated economic shocks. The market in the Americas has been stronger; the
sales performance in that region was due mainly to a rebuild from ground up on
the US sales force, and the performance in recent months is encouraging.
Adjusted Operating Costs decreased by 2% versus H1 last year due mainly to the
capitalisation of £0.7m platform-related development costs (H1 2021/22: nil).
Development costs related to specific products in the prior 2 years were
expensed. Employment costs rose as planned and increased progressively in
sales, marketing and IT and development as we pursued our plans to scale up
through partnerships and our automated testing platform. Overall average
headcount increased by 4% to 152 FTE with growth in Sales and IT offset by
reductions in operations. Statutory operating costs fell by 6% and include the
favourable impact of exchange rate movements on non-sterling bank balances.
Intellectual Property Litigation
On 9 November 2021, System1 announced that it had filed a complaint for
trademark infringement, unfair competition and deceptive trade practices at
the United States District Court Southern District of New York against System1
LLC ("LLC") over their infringing use of the mark "System1".
In October the U.S. District Court Southern District of New York rejected
LLC's motion to dismiss the complaint which means the case will proceed as
planned. In line with the recommended practice in the US legal system, we are
about to commence a period of mediation in advance of further court
proceedings.
Also in October 2022, we received positive news for the next stage in the
legal case by successfully registering the mark "System1" with the United
States Patent and Trademark Office for use in classes 35 and 38, matching the
registrations already held in the UK, EU, and other territories.
Tax
The Company has recognised a tax charge of £0.2m in the six months to 30
September 2022 (H1 2021/22: tax charge of £0.1m), due to the distribution of
trading profits in overseas jurisdictions which cannot be offset against
trading losses elsewhere. In the prior H1 period, a £0.5m tax credit was
recognised in respect of R&D claims.
Earnings Per Share
Diluted and Basic Earnings per Share fell from 8.8p to a loss per share of
1.7p, in line with year-to-date losses.
Cash
The Company ended the period with cash balances of £9.1m, £6.6m net of
borrowings (H1 2021/22: £7.5m). Operating cash flow before debt financing and
after all property lease costs amounted to an outflow of £2.6m in the first
half.
Balance Sheet
Total equity increased to £8.5m (31 March 2022: £8.3m), with the
year-to-date after-tax loss of £0.2m being more than offset by the increase
in the foreign exchange reserve due to the weakening of Sterling across the
period. Intangible assets have increased by £0.6m as a result of the
capitalisation of certain platform development costs. The Company's borrowings
consist of a £2.5m revolving credit facility that has been in place since
February 2020.
Current Trading & Outlook
Whilst the second half of the year has started well, and we expect H2 revenue to exceed H1, the Board is mindful of the current economic backdrop particularly in Europe. The higher H1 exit run-rate for expenditure, combined with exchange rate and inflationary pressures are likely to increase expenditure and erode profitability in H2. We now have the platform and human capital to serve a significantly bigger revenue base and are focused on growing from this point to deliver superior returns to our shareholders.
John Kearon Chris Willford
Founder and CEO Chief Financial Officer
Condensed Consolidated Income Statement
for the 6 months ended 30 September 2022
Note Sep-22 Sep-21
£'000 £'000
Revenue 3 10,496 12,355
Cost of sales (1,946) (1,983)
Gross profit 3 8,550 10,372
Administrative expenses (8,696) (9,124)
Other operating income 224 85
Operating profit 78 1,333
Finance expense (84) (80)
(Loss)/Profit before taxation (6) 1,253
Income tax expense (204) (122)
(Loss)/Profit for the period (210) 1,131
Attributable to the equity holders of the Company (210) 1,131
Earnings per share attributable to equity holders of the Company
Basic (loss)/earnings per share 4 (1.7p) 8.8p
Diluted (loss)/earnings per share 4 (1.7p) 8.8p
CONDENSED Consolidated Statement of Comprehensive Income
for the 6 months ended 30 September 2022
Sep-22 Sep-21
£'000 £'000
(Loss)/profit for the period (210) 1,131
Other comprehensive income:
Items that may be subsequently reclassified to profit/(loss)
Currency translation differences on translating foreign operations 447 92
Other comprehensive income for the period, net of tax 447 92
Total comprehensive income for the period attributable to equity holders of 237 1,223
the Company
CONDENSED Consolidated Balance Sheet
as at 30 September 2022
Registered no. 05940040
Note Sep-22 Mar-22
£'000 £'000
ASSETS
Non-current assets
Property, plant, and equipment 7 1,660 2,054
Intangible assets 8 977 382
Deferred tax asset 265 292
2,902 2,728
Current assets
Contract assets 151 198
Trade and other receivables 5,492 4,492
Cash and cash equivalents 9,064 11,174
14,707 15,864
Total assets 17,609 18,592
EQUITY
Attributable to equity holders of the Company
Share capital 10 132 132
Share premium account 1,601 1,601
Merger reserve 477 477
Foreign currency translation reserve 643 196
Retained earnings 5,694 5,857
Total equity 8,547 8,263
LIABILITIES
Non-current liabilities
Provisions 364 432
Lease liabilities 9 965 1,417
1,329 1,849
Current liabilities
Provisions 97 77
Lease liabilities 9 1,110 1,091
Borrowings 9 2,500 2,500
Contract liabilities 1,042 991
Income taxes payable 249 267
Trade and other payables 2,736 3,554
7,733 8,480
Total liabilities 9,062 10,329
Total equity and liabilities 17,609 18,592
CONDENSED Consolidated Statement of Cash Flows
for the 6 months ended 30 September 2022
Note Sep-22 Sep-21
£'000 £'000
Net cash (used in)/generated from operations 11 (1,297) 1,501
Tax (paid)/received (187) 377
Net cash (used in)/generated from operating activities (1,484) 1,878
Cash flows from investing activities
Purchases of property, plant, and equipment 7 (3) (72)
Purchase of intangible assets 8 (654) (53)
Net cash used by investing activities (657) (125)
Net cash flow before financing activities (2,141) 1,753
Cash flows from financing activities
Interest paid (84) (80)
Property lease liability payments (433) (599)
Purchase of own shares (135)
Net cash used by financing activities (652) (679)
Net (decrease)/increase in cash and cash equivalents (2,793) 1,074
Cash and cash equivalents at beginning of period 11,174 9,008
Exchange gain/(loss) on cash and cash equivalents 683 (38)
Cash and cash equivalents at end of period 9,064 10,044
Sep-22 Sep-21
£'000 £'000
Net cash flow before financing activities (2,141) 1,753
Net cash flow for property leases (468) (644)
Operating cash flow (2,609) 1,109
Consolidated Statement of Cash Flows (continued)
for the 6 months ended 30 September 2022
Consolidated Movements in Net Cash/(Debt)
Cash and cash equivalents Borrowings Lease liabilities Total
£'000 £'000 £'000 £'000
At 1 April 2021 9,008 (2,500) (2,575) 3,933
Cash flows 1,196 - 644 1,840
Non-cash charges
Interest on lease liabilities - - (45) (45)
New lease liabilities - - (459) (459)
Exchange and other non-cash movements (160) - - (160)
At 30 September 2021 10,044 (2,500) (2,435) 5,109
Consolidated Movements in Net Cash/(Debt)
Cash and cash equivalents Borrowings Lease liabilities Total
£'000 £'000 £'000 £'000
At 1 April 2022 11,174 (2,500) (2,508) 6,166
Cash flows (2,793) - 478 (2,315)
Non-cash charges
Interest on lease liabilities - - (45) (45)
New lease liabilities - - - -
Exchange and other non-cash movements 683 - - 683
At 30 September 2022 9,064 (2,500) (2,075) 4,489
Consolidated Statement of Changes in Equity
for the 6 months ended 30 September 2022
Share capital Share premium account Merger reserve Foreign currency translation reserve Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
At 1 April 2021 132 1,601 477 (146) 5,170 7,234
Profit for the period - - - - 1, 131 1,131
Other comprehensive income:
- currency translation differences - - - 91 1 92
Total comprehensive income - - - 91 1,132 1,223
Transactions with owners:
Employee share options:
- value of employee services - - - - 17 17
At 30 September 2021 132 1,601 477 (55) 6,319 8,474
At 1 April 2022 132 1,601 477 196 5,857 8,263
Loss for the period - - - - (210) (210)
Other comprehensive income:
- currency translation differences - - - 447 - 447
Total comprehensive income - - - 447 (210) 237
Transactions with owners:
Employee share options:
- value of employee services - - - - 182 182
Purchase of own shares (135) (135)
At 30 September 2022 132 1,601 477 643 5,694 8,547
Notes to the Condensed Consolidated Financial Statements
for the 6 months ended 30 September 2022
System1 Group PLC (the "Company") was incorporated on 19 September 2006 in the
United Kingdom. The Company's principal operating subsidiary, System1 Research
Limited, was at that time already established, having been incorporated on 29
December 1999. The address of the Company's registered office is 4 More London
Riverside, London, UK SE1 2AU. The Company's shares are listed on the
Alternative Investment Market of the London Stock Exchange ("AIM").
The Company and its subsidiaries (together the "Group") provide predictive
marketing data and market research consultancy.
The Board of Directors approved these interim financial statements for the six
months ended 30 September 2022 for issuance on 30 November 2022.
The financial information set out in this interim report does not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006 and is
unaudited. The Group's latest statutory financial statements were for the year
ended 31 March 2022 and these have been filed with the Registrar of Companies.
The auditor's report on those financial statements was unqualified and did not
contain an emphasis of matter paragraph and any statement under Section 498 of
the Companies Act 2006.
1. Basis of Preparation
This condensed consolidated interim financial information has been prepared in
accordance with UK adopted IAS 34 Interim Financial Reporting and on the going
concern basis. The Group is mindful of the current economic backdrop in
Europe, and the Board continues to review the performance of the Group
monthly, and senior management has a weekly assessment of sales revenue and
gross profit. The Group also prepares and reviews cash flow forecasts and is
confident that the going concern assessment remains appropriate. This
financial information should be read in conjunction with the financial
statements for the year ended 31 March 2022, which have been prepared under
the historical cost convention.
The preparation of financial statements in accordance with International
Financial Reporting Standards ("IFRS") requires the use of certain critical
accounting estimates.
2. Principal accounting policies
The principal accounting policies adopted are consistent with those of the
financial statements for the year ended 31 March 2022.
3. Segment Information
The financial performance of the Group's geographic operating units
("Reportable Segments") is set out below.
Sep-22 Sep-21
Revenue Gross profit Revenue Gross profit
£'000 £'000 £'000 £'000
By location of customer
Americas 4,050 3,262 4,483 3,885
United Kingdom 3,844 3,074 3,980 3,110
Rest of Europe 1,864 1,546 2,906 2,498
APAC 738 668 986 879
10,496 8,550 12,355 10,372
Segmental revenue is revenue generated from external customers and so excludes
intercompany revenue and is attributable to geographical areas based upon the
location in which the service is delivered.
Sep-22 Sep-21
Revenue Gross profit Revenue Gross profit
£'000 £'000 £'000 £'000
By product variant
Data 6,153 4,859 4,495 3,826
Consultancy 4,304 3,666 7,725 6,520
Other services 39 25 135 26
10,496 8,550 12,355 10,372
By product group
Communications (Ad Testing) 7,022 5,803 7,313 6,178
Brand (Brand Tracking) 1,865 1,324 1,632 1,237
Idea (Innovation) 1,571 1,399 3,283 2,931
Other services 38 24 127 26
10,496 8,550 12,355 10,372
4. Earnings Per Share
Sep-22 Sep-21
(Loss)/Profit attributable to equity holders of the Company, in £'000 (210) 1,131
Weighted average number of Ordinary Shares in issue 12,717,762 12,806,391
Basic (loss)/earnings per share (1.7p) 8.8p
(Loss)/Profit attributable to equity holders of the Company, in £'000 (210) 1,131
Weighted average number of Ordinary Shares in issue 12,717,762 12,806,391
Share options* 13,000 12,299
Weighted average number of Ordinary Shares for diluted earnings per share 12,730,762 12,818,690
Diluted (loss)/earnings per share (1.7p) 8.8p
*The impact of share options is anti-dilutive in the current period
due to the loss.
5. Headcount
The average number of staff employed by the Group during the period was as
follows:
Sep-22 Sep-21
No. No.
Sales and marketing 47 39
Operations 45 52
IT 38 34
Administration 22 21
152 146
6. Dividends
The Company did not pay dividends in the six months ended 30 September 2022
and 30 September 2021. The Company does not propose the payment of an interim
dividend.
No dividends were paid to the Company's directors.
7. Properly, Plant, and Equipment
Right-of-use assets Furniture and fixtures Computer hardware Total
£'000 £'000 £'000 £'000
At 1 April 2021
Cost 1.747 30 114 1,891
Accumulated depreciation (402) (13) (41) (456)
Net book value 1,345 17 73 1,435
Net book value, at 1 April 2021 1,345 17 73 1,435
Additions - 1,984 1 73 2,058
Disposals - (196) - - (196)
Foreign exchange - 16 1 4 21
Remeasurement of right-of-use assets (405) - - (405)
Depreciation charge for the year (773) (15) (71) (859)
Net book value, at 31 March 2022 1,971 4 79 2,054
At 31 March 2022
Cost 3,555 33 192 3,780
Accumulated depreciation (1,584) (29) (113) (1,726)
Net book value 1, 971 4 79 2,054
At 1 April 2022
Cost 3,555 33 192 3,780
Accumulated depreciation (1,584) (29) (113) (1,726)
Net book value 1,971 4 79 2,054
Net book value, at 1 April 2022 1,971 4 79 2,054
Additions - - 3 3
Foreign exchange 99 - - 99
Depreciation charge for the year (450) (1) (45) (496)
Net book value, at 30 September 2022 1,620 3 37 1,660
At 30 September 2022
Cost 2,139 11 179 2,329
Accumulated depreciation (519) (8) (142) (669)
Net book value 1,620 3 37 1,660
In the twelve months ended 31 March 2022, the Group added a new right-of-use
asset for a sublease in regard to the Company's New York Office lease asset
which had been fully impaired in the previous financial year. The value of the
sublease was for £740,000 of which £43,000 was a cash settlement. This in
turn has led to a re-recognition of the lease liability of the head lease of
£459,000 with corresponding reversal of £230,000 relating to the impairment
from 30 September 2020.
No impairment charges or reversals have been recorded in the six months ended
30 September 2022, and there have been no substantive changes to leasehold
arrangements.
8. Intangible assets
Development costs Software licences Total
£'000 £'000 £'000
At 1 April 2021
Cost - 464 464
Accumulated depreciation - (46) (46)
Net book value - 418 418
Net book value, at 1 April 2021 - 418 418
Additions - 59 59
Depreciation charge for the year - (95) (95)
Net book value, at 31 March 2022 - 382 382
At 31 March 2022
Cost - 525 525
Accumulated depreciation - (143) (143)
Net book value - 382 382
At 1 April 2022
Cost - 525 525
Accumulated depreciation - (143) (143)
Net book value - 382 382
Net book value, at 1 April 2022 - 382 382
Additions 654 - 654
Disposals - (1) (1)
Depreciation charge for the year - (58) (58)
Net book value, at 30 September 2022 654 323 977
At 30 September 2022
Cost 654 529 1,183
Accumulated depreciation - (206) (206)
Net book value 654 323 977
During the period ended 30 September 2022, the company has capitalised £654k
of development costs in respect of three key projects: the credit platform,
the notifications service and the team management system. The platforms were
not complete as at the period end; therefore no amortisation has been
recognised.
9. Borrowings
In February 2020, the Company entered a 3-year revolving credit facility with
HSBC. The agreement allows the Company to draw down up to £2,500,000 for the
purposes of funding general corporate and working capital requirements. The
facility is secured over the assets of those Group companies domiciled in the
United Kingdom and the United States. The loan accrues interest at a rate of
2.5% above SONIA (Sterling Overnight Index Average) and is subject to leverage
and interest covenants.
The analysis of the maturity of lease liabilities is as follows:
Sep-22 Mar-22
£'000 £'000
Within one year 1,161 1,147
Later than 1 but no later than 5 years 978 1,447
More than 5 years - -
Minimum lease payments 2,139 2,594
Future finance charges (64) (86)
Recognised as a liability 2,075 2,508
The present value of finance lease liabilities is as follows:
Sep-22 Mar-22
£'000 £'000
Within one year 1,110 1,091
Later than 1 but no later than 5 years 965 1,417
More than 5 years - -
2,075 2,508
10. Share Capital
The share capital of System1 Group PLC consists only of fully paid Ordinary
Shares ("Shares") with a par value of one penny each. All Shares are equally
eligible to receive dividends and the repayment of capital, and represent one
vote at the Annual General Meeting.
Sep-22 Mar-22
No. £'000 No. £'000
Allotted, called up, and fully paid ordinary shares 13,226,773 132 13,226,773 132
At 1 April and at 30 September
Sep-22 Mar-22
Treasury shares Weighted average exercise price per share Treasury shares Weighted average exercise price per share
No. Pence No. Pence
Shares held by Treasury
At 1 April 487,151 510,421
Purchase of treasury shares 60,693 158,674
Transfer of shares to satisfy options exercise - - (181,944) -
At 30 September 547,844 487,151
11. Net Cash Generated from Operations
Sep-22 Sep-21
£'000 £'000
Profit before taxation (6) 1,253
Depreciation of property, plant, and equipment 496 472
Amortisation and impairment of intangible assets 58 47
Loss on disposal of property, plant, and equipment - -
Interest paid 84 80
Share-based payment expense 182 17
(Increase)/decrease in contract assets 47 (18)
(Increase)/decrease in trade and other receivables (1,001) (588)
Increase/(decrease) in trade and other payables (819) 277
Increase/(decrease) in deferred income 51 (22)
(Decrease)/increase in provisions (65) 89
Exchange differences on operating items (323) (106)
(1,297) 1,501
12. Post Balance Sheet Events
On 31 August 2022 the board announced a review of its strategic options for growing the business and increasing shareholder value. The initial findings of the review are reported at the front of this document.
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. END IR BKCBQNBDBKDBRecent news on System1
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