REG - System1 Group PLC - Trading Update

System1Announcement

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RNS Number : 2929E  System1 Group PLC  22 October 2025

 

 

 

     22 October 2025

 

 

System1 Group PLC (AIM: SYS1)

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

Quarter 2 and Half Year Trading Update

 

 

 

Following the trading update on 23 September 2025, and ahead of today's
capital markets webinar, System1, www.system1group.com
(https://system1group-my.sharepoint.com/personal/chris_willford_system1group_com/Documents/Trading%20Updates/October%202024/www.system1group.com)
issues an update on trading for the quarter ended 30 September 2025 (Q2 FY26)
and the half-year ended 30 September 2025 (H1 FY26).

 

 Revenue £ million* - unaudited       Q2    Q2    Q2     H1    H1    H1
                                      FY26  FY25  % YoY  FY26  FY25  % YoY
 Predict Your (data)                  6.7   6.6   1%     13.4  13.4  1%
 Improve Your (data-led consultancy)  1.3   1.6   -19%   2.8   3.3   -16%
 Platform Revenue                     7.9   8.1   -3%    16.2  16.7  -3%
 Other consultancy (non-platform)     0.4   0.7   -45%   0.9   1.6   -46%
 Total Revenue                        8.3   8.9   -6%    17.1  18.3  -7%

 

*All numbers rounded to one decimal place. Percentages calculated from
unrounded numbers.

 

Quarter 2

Platform Revenue decreased by 3% to £7.9m with data sales 1% higher and
data-led consultancy 19% lower than in the same period last year. Platform
Revenue comprised 95% of Total Group Revenue in Q2 FY26 (Q2 FY25: 92%). Total
Q2 FY26 Revenue of £8.3m was 6% lower than Q2 FY25. As previously announced,
the Company continued to see lower, but ongoing, spend from many of its
largest clients, due to the wider macroeconomic uncertainty. New business flow
remained strong in the quarter with wins including a multi-billion-dollar US
beverage business, a global banking and wealth management company, the largest
supermarket operator in the US, and the UK's largest wealth manager.

 

 

Half Year

New platform clients in H1 FY26 accounted for a record £3.4m of revenue.
Platform Revenue in H1 FY26 fell by 3% versus H1 FY25 to £16.2m with data
sales 1% higher and data-led consultancy 16% lower. Total H1 FY26 Revenue of
£17.1m was 7% below the same period last year, including the impact of a
£0.7m reduction in non-platform business. US Revenue continued to grow, up 3%
(8% in USD). Innovation Revenue grew by 26% on the comparable period with
Innovation platform revenue 107% higher, which was offset by lower ad-testing
revenue. Revenue in continental Europe was 36% lower than in H1 FY25 despite
improving quarter on quarter, and the UK trended broadly in line with the
total company. Total Platform Revenue comprised 95% of Total Group Revenue in
H1 FY26 (H1 FY25: 91%).

 

Gross Profit in H1 FY26 reached £14.9m at a margin of 87% (H1 FY25: £16m at
87% margin).

 

Operating expenditure increased by £0.9m (+7% on H1 FY25), due mainly to
investment in growth over the past 18 months, with lower variable pay
mitigating the year-on-year increase.

 

The cash balance at the end of H1 was £10.8m after the payment of all FY25
bonuses (end H1 FY25: £8.9m) and before the ca £1.4m dividend paid in
October.

 

Full year guidance unchanged

Commenting on the trading update, CEO James Gregory said:

"We have made good progress in the focus areas of Innovation, the USA and
winning with the world's largest brands - and this in the face of reduced
market research spend by a number of our large clients. October is looking
strong, and the Company continues to trade in line with the guidance(1) we
gave in the 23 September 2025 update"

 

Interim Results

The Company intends to release interim results for the half-year ended 30
September 2025 on 2 December 2025. Based on the unaudited management accounts,
the Group expects to report an H1 Pre-Tax Adjusted Profit of £0.2 - £0.3
million for the half-year (H1 FY25: £2.5m).

 

1.     Revenue for FY26 is expected to be broadly in line with the £37m
achieved in FY25 and full year Adjusted PBT(2) in a range between £2.0 to
£2.5 million

2.     Statutory Profit Before Taxation excluding share-based payment
charges/credits

 

Further information on the Company can be found at 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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