REG - System1 Group PLC - Trading Update

System1Announcement

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RNS Number : 7155W  System1 Group PLC  16 March 2026

 

 

 

  16 March 2026

 

System1 Group PLC (AIM: SYS1)

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

Trading Update

Strong new business performance positions the Group for record H2 FY26 revenue
and a return to profitable growth in FY27, ahead of market expectations

 

System1 www.system1group.com (http://www.system1group.com) the marketing
decision-making platform is pleased to provide an update on trading for the
financial year ending 31 March 2026 and the outlook for FY27.

 

The Company has continued to trade strongly in the final quarter and, as a
result, expects to report record H2 revenue and a performance for FY26 in line
with guidance.

 

The strong level of new business wins secured throughout FY26 and particularly
in the final quarter, provide a positive outlook for FY27.

 

After a period of additional investment, the business is delivering a cost
optimisation and efficiency plan, including changes to the Group's
organisational structure, sales incentivisation and go-to-market approach.
This restructuring of the cost base, while incurring one-off costs in FY26,
will provide for greater operational leverage as the Group's revenue growth
rate increases. Further detail will be provided in the full-year results
announcement.

 

As a result of the above, the Board remains comfortable with consensus Revenue
forecasts for FY27 but now expects FY27 Adjusted EBITDA to be materially ahead
of current market forecasts, with an Adjusted EBITDA margin of no less than
15% and the opportunity for further margin expansion as revenue scales.

 

The Board expects to publish the Group's FY26 trading update in late April
2026 and financial results in July 2026.

 

Commenting on the trading update, CEO James Gregory said: "The strategic
progress we highlighted in our Interim Results, in Innovation, the USA, and
with the world's largest brands, has continued to strengthen through the final
quarter. The step up in new business wins, together with the completion of our
investment phase and the benefits of cost optimisation activities, are now
driving clearer commercial momentum and revenue growth, including double-digit
growth in Innovation sales, deepening our customer engagement and strategic
relevance. As we look to FY27, we are well positioned to scale our platform
further, deepen client relationships, grow faster, and deliver profitability
ahead of current market expectations."

 

Chairman Rupert Howell said: "It is gratifying to see the strategic growth
initiatives delivering such positive, early results. System1 now has a strong
and unified leadership team, with highly motivated staff to take the business
on a pathway to double digit revenue growth, whilst managing costs to deliver
improved margin growth. We are confident we have the right offering, team and
strategy to deliver increased shareholder value in the years ahead."

 

Notes

For the purpose of this announcement, the guidance provided in the 23
September 2025 announcement was for FY26 Revenue to be broadly in line with
the £37m achieved in FY25, and Adjusted Profit beforeTaxation in a range
between £2.0 to £2.5 million.  Adjusted Profit is Profit before Taxation
excluding share-based payments.

For the purpose of this announcement, consensus FY27 Revenue is £38.8 million
and Adjusted EBITDA is £4.3m. Adjusted EBITDA is Adjusted Profit before
Taxation plus interest, depreciation and amortisation

 

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                                           via Alma
 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

 Singer Capital Markets (Joint Broker)                       Tel: +44 (0) 20 7496 3000
 James Moat / James Fischer / Sara Hale

 Alma Strategic Communications
 Caroline Forde / Rebecca Sanders-Hewett / Robyn Fisher      Tel: +44 (0)20 3405 0205

                                                             System1@almastrategic.com (mailto:System1@almastrategic.com)

 

 

About System1 Group plc

System1 is a marketing decision-making platform business, utilised by some of
the world's largest brands, across 81 markets globally. Since 2000, System1
has helped marketers tap into consumers' emotions to predict and improve the
commercial impact of ads and ideas. Drawing on the world's largest database of
emotional norms, our advertising and idea tests measure emotion to give our
customers the most accurate predictions of the business impact of creativity.
We 'predict' (provide research results) and work with our customers and
'improve' (provide insight and consultancy on those results) advertising
effectiveness, innovation effectiveness and brand effectiveness.

 

We work for more than 500 customers, including 5 of the top 10 US and 8 of the
top 10 UK advertisers. Customers include Pfizer, Amazon, TikTok, Sky, Lego,
Pladis and Natura.

 

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

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