REG - System1 Group PLC - Trading update

System1Announcement

13/07/2023 07:45

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RNS Number : 9161F  System1 Group PLC  13 July 2023

 

     13 July 2023

 

 

System1 Group PLC (AIM: SYS1)

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

 

 

System1 today issues an update on trading for the quarter ended 30 June 2023
(Q1).

 

 Revenue £ million - unaudited        Q1 FY24  Q1 FY23  Q1
                                      Jun-23   Jun-22   % YoY
 Predict Your (data)                  4.0      3.0      36%
 Improve Your (data-led consultancy)  0.9      0.8      15%
 Platform Revenue                     4.9      3.7      32%
 Other consultancy (non-platform)     1.3      1.5      -16%
 Total Revenue                        6.2      5.2      18%

 

 

 

During Q1, the Company made further progress towards the strategic objectives
that the board set out following the 2022 strategic review, growing standard
Predict Your and Improve Your products by 32% versus Q1 FY23 and introducing
new ad-testing variants specifically for digital and audio.

 

Predict Your (data) revenue grew by 36% on the comparable prior-year quarter
to £4.0m, and Improve Your (data-led consultancy) revenue increased by 15%
over the comparable prior-year quarter to £0.9m, bringing total platform
revenue to £4.9m up 32%.

 

Total Group revenue grew by £0.9m (18%) on Q1 FY23 including a £0.2m
reduction in non-platform consultancy, and growth in the US was in line with
the Group.

 

The Company scored a series of new customer wins in the quarter. In the US,
these included one of the world's largest publicly traded international oil
and gas companies, a worldwide employment website, a global chocolate
manufacturer, and a significant provider of search and advertising services on
the internet. In Europe, the Company has begun working with a multinational
manufacturer of luxury vehicles, a leading short-haul airline and an
international business software company.

Partnerships

During the quarter the Company published and road-showed at Cannes and MADfest
London four separate thought leadership pieces on creative effectiveness in
collaboration with four new partners, namely, Pinterest (digital advertising
in Europe), Finecast (addressable TV advertising US, UK Canada, Australia),
Teads (mobile advertising US and UK) and JCDecaux (out-of-home advertising US
and UK). The Board is encouraged by the development of these new partnerships
and the adoption of System1's methodology across further advertising formats.

 

Products

In line with the plans announced last quarter, System1 launched two new Test
Your Ad product variants. TYA Digital launched in May following the roll out
of TYA Audio in April.  It is early days for both these products, but initial
customer reaction has been pleasing.

 

Commenting on the trading update, CEO James Gregory said: "The sales momentum
in the platform business continues, with Q1 Predict Your revenue beating last
year's comparable number by 36% and total platform revenue up 32%. I am also
pleased to see System1's new product and fame-building initiatives attract new
customers and partners".

 

Preliminary Results

The Company intends to release its preliminary results for the year ended 31
March 2023 on 1 August 2023

 

Further information on 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
 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

 

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