REG - System1 Group PLC - Trading Update

System1Announcement

22/02/2022 07:00

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RNS Number : 4000C  System1 Group PLC  22 February 2022

 

 

                             22 February 2022

 

 

System1 Group PLC (AIM: SYS1)

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

 

Trading Update

 

System1 Group, the marketing decision-making platform, issues the following
update on trading for the year ending 31 March 2022.

 

Despite substantial progress in the development of new revenue streams from
automated prediction products (Data) since their introduction in 2020, and
satisfactory performance in the first 9 months of the current financial year,
total revenues in the final quarter ending 31 March 2022 are now expected to
be over £1m short of management's previous expectations. This is due to a
sudden and unanticipated reduction in the forecast for bespoke consultancy
project sales in the US.

 

Management is taking rapid action to address the consultancy sales performance
in the US. As a consequence of the lower consultancy revenues, we now expect
profit before tax for the final quarter and the year as a whole to be about
£1m below the current market expectations.

 

The Company is now well into its transition from a marketing agency to a
decision-making platform. Automated Data products in the US region, and
overall, continue to perform well, attracting over 200 new customers since
launching in 2020. In the nine months to 31 December 2021, 39% of revenue came
from Data and 60% of that revenue originated from those new customers.

 

Cash net of borrowings remained strong at the end of January at £9m, compared
with £6.5m at end-March 2021.

 

 

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

 

 

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