REG - System1 Group PLC - Trading Update

System1Announcement

24/01/2024 07:00

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RNS Number : 6748A  System1 Group PLC  24 January 2024

 

 

 

                                                 24 January
     2024

 

 

System1 Group PLC (AIM: SYS1)

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

Quarter 3 Trading Update

Increase in Full Year Guidance

 

 

 

System1, the marketing decision-making platform www.system1group.com
(http://www.system1group.com) today issues an update on trading for the
quarter ended 31 December 2023 (Q3).

 

 Revenue £ million - unaudited        Q3    Q3    Q3     YTD   YTD   YTD
                                      FY24  FY23  % YoY  FY24  FY23  % YoY
 Predict Your (data)                  5.2   3.4   53%    14.2  9.6   49%
 Improve Your (data-led consultancy)  1.0   0.9   16%    2.9   2.3   25%
 Platform Revenue                     6.2   4.3   46%    17.1  11.9  44%
 Other consultancy (non-platform)     1.8   2.0   -6%    4.2   4.9   -13%
 Total Revenue                        8.0   6.2   29%    21.4  16.7  28%

 

 

Quarter 3

System1 made further progress on delivery against the strategic review
objectives that the Board set out following the 2022 strategic review, growing
Q3 platform revenue by 46% versus Q3 FY23.

 

Predict Your (data) revenue grew by 53% on the comparable prior-year quarter
to £5.2m and Improve Your (data-led consultancy) revenue increased by 16%
over the comparable prior-year quarter to £1.0m, bringing total platform
revenue to £6.2m, up 46%.

Total Group revenue grew by £1.9m to £8.0 million, up 29% on Q3 FY23, with
strong growth in the US, Europe and the UK.

 

Nine Months to 31 December 2023

Predict Your (data) revenue grew by 49% on the comparable prior-year period to
£14.2m and Improve Your (data-led consultancy) revenue increased by 25% over
the comparable prior year to date to £2.9m, bringing total platform revenue
to £17.1m, up 44%.

 

Total Group revenue grew by £4.7m to £21.4m, up 28%, with year-to-date gross
profit margin at 87% remaining strong.

 

The Group's Q3 period end cash balance rose to £6.4m (31 March 2023: £5.7m).

 

New Clients and Partners

System1 won over 60 new clients in Q3, and over 200 new clients in FY24 Q1 -
Q3.  These new clients include Pfizer, M&S, Tesco, easyJet, Toyota,
Muller, B&Q, and Just Eat.

New partnerships were secured with one of the leading ad-supported broadcast
and cable networks in the US as well as Roku TV, Radiocentre, Aardman
Animations and Fuse OMD Worldwide.

 

Outlook

The Group enters the final quarter of the year with good trading momentum
following a consistently strong December quarter. As a consequence, the Board
believes that the Group is now well placed to deliver results ahead of
previous expectations.  Revenue for the current financial year is expected to
be at least £29 million (FY23: £23.4 m) and statutory profit before tax to
be comfortably above £2 million and materially ahead of current consensus
(FY23: £0.7m).

 

Commenting on the trading update, CEO James Gregory said: "We continue to
deliver quarter on quarter revenue and profit growth, exceeding £8m revenue
for the last quarter and increasing platform revenue by 46%. We are executing
our go-to-market plans and building out ever-improving customer propositions,
creating the momentum to grow further over the coming years".

 

Capital Markets Day

The Company will be holding a Capital Markets Day via Investor Meet Company at
3:00pm GMT on Wednesday 7 February 2024.The meeting is open to all existing
and potential shareholders. Questions can be submitted pre-event via your
Investor Meet Company dashboard up until 9:00am the day before the meeting or
at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet
System1 Group PLC via:
https://www.investormeetcompany.com/system1-group-plc/register-investor
(https://www.investormeetcompany.com/system1-group-plc/register-investor)

 

Investors who already follow System1 Group PLC on the Investor Meet Company
platform will automatically be invited.

 

 

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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