REG - System1 Group PLC - Quarterly Trading Update

System1Announcement

12/07/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220712:nRSL0925Sa&default-theme=true

RNS Number : 0925S  System1 Group PLC  12 July 2022

 

     12 July 2022

 

 

System1 Group PLC (AIM: SYS1)

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

 

Quarterly Trading Update

 

 

To accompany the publication of its preliminary results for the year ended
March 31 2022, System1 today issues the following update on trading for the
quarter ended 30 June 2022 (Q1).

 

Revenue in Q1 declined 20% on the comparable period last year to £5.2m, and
Data products accounted for £2.9m, representing 57% of the quarter's revenue,
the highest absolute and relative quarterly performance for our automated
predictions since launch in 2020. Compared with the previous quarter, total
revenue was 1% lower and Data revenue grew by 21%.

 

Q1 period-end cash, net of borrowings, was £7.1m, compared with £8.7m at
end-March 2022.

 

Although lower than the comparable period last year, revenue and profitability
were broadly in line with the Board's expectations and reflected inflationary
pressures, tighter marketing budgets for some customers and continued softness
in bespoke consultancy revenues, particularly in the USA where we have only
recently filled a number of vacancies in the sales team.

 

Notwithstanding the Q1 performance, the Board is cognisant of market
headwinds, including some customers' withdrawal from Russia and the
possibility of recession in major economies that could squeeze their marketing
budgets. If that were to materialise, the Company's revenues and profits for
remainder of the year would be adversely affected.

 

As previously announced, the Company intends to return up to £1.5m of excess
cash by way of a tender offer at the earliest opportunity. Pending the
preparation of the materials for the proposed tender offer, the Company will
seek to buy shares back on market, as separately announced today. The tender
offer will seek to return the balance of the £1.5m, after deducting the value
of shares bought back on market from today until the announcement of the
tender offer.

 

 

The Company can be found at www.system1group.com (http://www.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 Chief Executive Officer
 Chris Willford, Chief Financial Officer
 Canaccord Genuity Limited                         Tel: +44 (0)20 7523 8000
 Simon Bridges / Andrew Potts

 

 

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  TSTBKDBDDBKBBOD