REG - System1 Group PLC - Trading Update

System1Announcement

24/10/2023 07:00

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RNS Number : 0264R  System1 Group PLC  24 October 2023

 

 

 

     24 October 2023

 

 

System1 Group PLC (AIM: SYS1)

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

Quarter 2 and Half Year 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 30 September 2023 (Q2) and the half-year ended 30 September 2023
(H1) in advance of its interim results announcement.

 

 Revenue £ million - unaudited        Q2    Q2    Q2     H1    H1    H1
                                      FY24  FY23  % YoY  FY24  FY23  % YoY
 Predict Your (data)                  5.0   3.2   57%    9.0   6.2   47%
 Improve Your (data-led consultancy)  1.0   0.7   49%    1.9   1.4   31%
 Platform Revenue                     6.0   3.9   55%    10.9  7.6   44%
 Other consultancy (non-platform)     1.1   1.4   -21%   2.4   2.9   -18%
 Total Revenue                        7.1   5.3   35%    13.3  10.5  27%

 

 

Quarter 2 Update

As highlighted in the Company's AGM trading update on 27 September 2023,
System1 made further progress towards the strategic objectives that the Board
set out following the 2022 strategic review, growing Q2 platform revenue by
55% versus Q2 FY23.

 

Predict Your (data) revenue grew by 57% on the comparable prior-year quarter
to £5.0m and Improve Your (data-led consultancy) revenue increased by 49%
over the comparable prior-year quarter to £1.0m, bringing total platform
revenue to £6.0m, up 55%.

 

Total Group revenue grew by £1.9m (35%) on Q2 FY23 including a £0.3m
reduction in non-platform consultancy, with particularly strong growth in
Europe and the UK.

 

Half Year Update

Revenue performance for H1 was slightly ahead of the estimates contained in
last month's AGM trading update, with total revenue expected to be up 27% on
H1 FY23 and platform revenue expected to grow by 44%.

 

Gross profit for the first half year is expected to reach £11.6m at a margin
of 87% (H1 FY23: £8.5m at 81.5% margin), reflecting the management team's
focus on delivering profitable growth and improving shareholder value.
Operating costs are expected to increase by £2.2m versus the comparable
period, due to increased staff costs - including performance related pay,
lower net capitalisation of IT development costs, and enhanced sector and
geographic coverage of the TYA Premium database following multiple client wins
in the retail, technology and travel sectors.

 

The Company expects to report a Statutory Pre-Tax Profit just below £1.0
million for the  half-year (H1 FY 23: £0.0m).

 

Cash inflow during H1 amounted to £0.6m, resulting in a 30 September 2023 net
cash balance of £6.3m (31 March 2023: £5.7m).

 

The Company won over 100 new clients in H1, including a global top three
advertiser, a leading global breakfast foods company, a leading European car
manufacturer, a leading budget airline, a 'big four' UK supermarket, and a
multinational consumer goods company.

 

Commenting on the trading update, CEO James Gregory said: "The sales momentum
in the platform business continues, with platform revenue up 55% in Q2, 44% in
H1 and all at an improved profit margin".

 

Interim Results

The Company intends to release interim results for the half-year ended 30
September 2023 on 6 December 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 / Harry Rees

 

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