REG - System1 Group PLC - Q4 and Full Year Trading Update

System1Announcement

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RNS Number : 2071B  System1 Group PLC  21 April 2026

     21 April 2026

System1 Group PLC (AIM: SYS1)

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

 

Q4 and Full Year Trading Update

Strong H2 and confident FY27 outlook

 

System1, the marketing decision-making platform www.system1group.com
(http://www.system1group.com) today issues an update on trading for the final
quarter ("Q4") and financial year ended 31 March 2026 ("FY26"), confirming a
record H2 revenue performance and positive FY27 outlook.

 

FY26 Financial Highlights (unaudited)

·    Group revenue was steady at £37m (FY25: £37.4m) in line with
previous guidance, demonstrating a strong recovery in Platform revenues in H2

·    H2 revenues increased 4% year on year, marking a record 6-month
revenue performance, driven by growth in data and data-led offerings and new
client revenue

·    Adjusted EBITDA of £3.6m (FY25: £6.6m) reflecting previously
announced investment to support future growth, and restructuring costs of
£0.5m (FY25: £0.2m)

·    Adjusted PBT of £2.1m (FY25: £5.2m), in line with previous guidance

·    Cost savings implemented in H2, reducing operating expenses by
approximately £1m on an annualised basis

·    Year-end cash position of £12.4m (FY25: £12.9m) provides continued
balance sheet strength

 

FY26 Strategic Highlights

·    Good progress against all three strategic pillars, demonstrating
positive result from investment programme

o  Revitalising Innovation: Innovation revenue up 19%, Platform revenue up
58%, expanded range of solutions, new go-to-market partnership with BionicX AI

o  Winning in the USA: 7% platform revenue growth, 1% total growth, driven by
strong new business performance

o  World's largest brands: Worked with 48 of the world's top 100 Brands
measured by advertising media spend (FY25: 44); restructured go-to-market
operation to focus on strategic customer repeat revenue and retention

Outlook

·    The strong level of new business wins secured throughout FY26 and
particularly in the final quarter, provide confidence in delivering revenue
and profit growth in FY27, in line with consensus market expectations

·    Cost savings implemented in FY26 position the business for an
improved EBITDA margin of no less than 15% in FY27, with the opportunity for
further margin expansion as revenue scales

 

Commenting on the results, CEO James Gregory said: "FY26 has seen the
successful delivery on our plans to grow in the USA, revitalise our Innovation
product offering and increase the number of the world's largest brands as
customers. This progress against a challenging macro-economic environment
delivered a resilient FY26 performance, a record H2 performance and places the
business on an upwards trajectory into FY27. With deep advertising and
innovation experience, an increasingly powerful offering, a talented and
committed team and growing customer base of the world's largest brands, we are
confident in the near- and long-term opportunities for the business."

 

Q4 and FY26 Trading Update

 Revenue £ million - unaudited        Q4    Q4    Q4     H2    H2    H2     Full Year  Full Year  Full Year
                                      FY26  FY25  % YoY  FY26  FY25  % YoY  FY26       FY25       % YoY
 Predict Your (data)                  8.4   6.6   +28%   16.5  14.7  +12%   29.9       28.1       +7%
 Improve Your (data-led consultancy)  1.4   1.8   -24%   2.8   3.1   -10%   5.6        6.5        -13%
 Platform Revenue                     9.8   8.4   +17%   19.3  17.9  +8%    35.5       34.6       +3%
 Other consultancy (non-platform)     0.3   0.5   -53%   0.5   1.2   -57%   1.4        2.9        -51%
 Total Revenue                        10.1  8.9   +13%   19.8  19.1  +4%    37.0       37.4       -1%

 

The Board is pleased to confirm trading in FY26 in line with guidance and
slightly ahead of consensus(1). Group revenue remained steady at approximately
£37m (FY25: £37.4m), reflecting an improved H2 performance as existing
customers recommenced Adtesting spend and new client wins contributed to
revenue. Platform Revenue increased 3% to £35.6m (FY25: £34.6m), reversing
the decline seen in H1. Non-platform bespoke consultancy revenue decreased 51%
to £1.4m, reflecting customers' growing adoption of standard platform-based
solutions

 

In total, over 300 new platform clients were secured in the year, providing
revenue of £10.7m, being 30% of full year Platform Revenue.  New customers
included a global media business, a global financial services group, a
world-famous leisure business and an American multinational soft drink
company. New clients in the USA contributed £3.5m of Platform Revenue, in
line with the Group's focus of growing the Group's USA business. While
existing customer spend was reduced during the year, due partly to the global
macro-economic conditions in H1, as reflected in an FY26 Platform NRR of 72%
(FY2025: 106%) this was offset by the Group's consistent success in securing
new Adtesting and Innovation clients. Retention by customer number was broadly
in line with prior years.

 

The number of active clients during the year increased to 626 (FY25: 536,
restated), providing the Group with the potential for growth in revenues from
new clients in future years. The Company strengthened its go-to-market
activities in January 2026 with the signing of a partnership with BionicX AI,
to combine AI-driven insight discovery with independent, emotion-based
testing, helping brands explore ideas faster while retaining confidence in
innovations that will succeed in market.

 

Adjusted EBITDA is expected to be approximately £3.6m (FY25: £6.6m),
following the previously announced investment in the Group's sales and
innovation capability. The Group incurred an elevated level of restructuring
costs during the year, as part of a cost saving and efficiency plan, which
included some changes to the Group's organisational structure, and
go-to-market approach. This restructuring of the cost base, while incurring
one-off costs of approximately £0.5m in FY26, represents annualised cost
savings of approximately £1m, providing the opportunity for greater
operational leverage and improved margins.

 

The Group closed the year with net cash of £12.4m (FY25: £12.9m), reflecting
continued good cash collection and cost discipline, including a £0.5m
reduction in the additional investment programme that was announced for FY26.
The strength of the balance sheet provides the Board with the ability to
continue to selectively invest in revenue growth initiatives.

 

Positive outlook

 

The Board is confident that the improved H2 performance is sustainable in
FY27, given the number of large new customers secured during FY26, for whom
projects will be delivered in FY27 and the positive impact of fame-building
campaigns, including The Long and Short (form) of it and The Creative
Dividend. System1 concluded its biggest ever sales contract with a new US
client in the final quarter which is expected to produce sales revenue in
FY27. As a result, the Board remains comfortable with consensus Revenue
forecasts for FY27 and the recently upgraded adjusted EBITDA expectations(1).

 

The Board is confident that System1's leadership in emotion-based creative
effectiveness testing, the scalability of its offering, its growing number of
blue-chip customers and significant addressable market provide it with the
foundations to deliver increased shareholder value and achieve its ambitions.

 

Notice of Results

 

The Company intends to publish its FY26 results on 8 July 2026. Details of the
Investor Meet Company presentation will follow closer to the day of the
results.

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law in
the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 and
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.

 

1.     For the purpose of this announcement, the Company believes
consensus forecast to be FY26 Revenue of £36.4 million, Adjusted Profit
before Taxation of £2.0 million and FY27 Revenue of £38.8 million, and
Adjusted Profit before Taxation of £4.2 million.

 

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

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