REG - System1 Group PLC - Trading Update

System1Announcement

12/07/2024 07:00

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RNS Number : 1308W  System1 Group PLC  12 July 2024

12 July 2024

 

 

System1 Group PLC (AIM: SYS1)

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

 

First Quarter Trading Update

 

 

Following last week's FY24 Final Results announcement, System1, the marketing
decision-making platform www.system1group.com (http://www.system1group.com)
today issues an update on trading for the first quarter of the financial year
ending 31 March 2025 (Q1 FY25).

 Revenue £ million - unaudited        Q1    Q1    Q1
                                      FY25  FY24  % YoY
 Predict Your (data)                  6.8   4.0   68%
 Improve Your (data-led consultancy)  1.8   0.9   104%
 Platform Revenue                     8.6   4.9   74%
 Other consultancy (non-platform)     0.9   1.3   -30%
 Total Revenue                        9.5   6.2   53%

 

Total Q1 FY25 Revenue of £9.5m was 53% higher than the equivalent quarter
last year, with Platform Revenue growing by 74% to £8.6m and non-platform
consultancy falling by 30%, in line with our expectations, to £0.9m. Growth
in Revenue was driven mainly by the US where US Total Revenue rose by 94% to
£3.3m and US Platform Revenue by 164% to £2.9m. Platform Revenue comprised
90% of Total Revenue in Q1 FY25 (FY24: 79%). New business performance was
strong in the quarter with over 75 new client wins. All geographic regions
were well up on Q1 FY24 except LatAm which was slightly down.

 

We achieved an 87% gross profit margin in Q1 FY25, in line with the same
period last year and ahead of our 85% benchmark.

 

Planned tax and bonus payments resulted in a net £1.5m cash outflow in the
quarter with net cash at end of June of £8.1m.

 

 

Commenting on the results, CEO James Gregory said:

 

"Customer demand was exceptionally strong in the first quarter, somewhat ahead
of our own expectation. It's early in the year but this strong first quarter
performance puts us firmly on track for sustainable growth and to achieve our
full year expectations(1)."

 

Further information on the Company can be found at www.system1group.com
(http://www.system1group.com) .

 

1.     For the purpose of this announcement, the Group believes market
consensus for FY25 to be revenue of £36.5m, and profit before tax of £4.4m.

 

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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