SYS1 System1 Group Plc

TIDMSYS1

RNS Number : 0264R

System1 Group PLC

24 October 2023

 
                                               24 October 2023 
 

System1 Group PLC (AIM: SYS1)

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

Quarter 2 and Half Year Trading Update

System1, the marketing decision-making platform www.system1group.com today issues an update on trading for the quarter ended 30 September 2023 (Q2) and the half-year ended 30 September 2023 (H1) in advance of its interim results announcement.

 
Revenue GBP million                 Q2    Q2    Q2     H1    H1    H1 
 - unaudited 
                                   FY24  FY23  % YoY  FY24  FY23  % YoY 
Predict Your (data)                5.0   3.2    57%   9.0   6.2    47% 
Improve Your (data-led 
 consultancy)                      1.0   0.7    49%   1.9   1.4    31% 
Platform Revenue                   6.0   3.9    55%   10.9  7.6    44% 
Other consultancy (non-platform)   1.1   1.4   -21%   2.4   2.9   -18% 
Total Revenue                      7.1   5.3    35%   13.3  10.5   27% 
 

Quarter 2 Update

As highlighted in the Company's AGM trading update on 27 September 2023, System1 made further progress towards the strategic objectives that the Board set out following the 2022 strategic review, growing Q2 platform revenue by 55% versus Q2 FY23.

Predict Your (data) revenue grew by 57% on the comparable prior-year quarter to GBP5.0m and Improve Your (data-led consultancy) revenue increased by 49% over the comparable prior-year quarter to GBP1.0m, bringing total platform revenue to GBP6.0m, up 55%.

Total Group revenue grew by GBP1.9m (35%) on Q2 FY23 including a GBP0.3m reduction in non-platform consultancy, with particularly strong growth in Europe and the UK.

Half Year Update

Revenue performance for H1 was slightly ahead of the estimates contained in last month's AGM trading update, with total revenue expected to be up 27% on H1 FY23 and platform revenue expected to grow by 44%.

Gross profit for the first half year is expected to reach GBP11.6m at a margin of 87% (H1 FY23: GBP8.5m at 81.5% margin), reflecting the management team's focus on delivering profitable growth and improving shareholder value. Operating costs are expected to increase by GBP2.2m versus the comparable period, due to increased staff costs - including performance related pay, lower net capitalisation of IT development costs, and enhanced sector and geographic coverage of the TYA Premium database following multiple client wins in the retail, technology and travel sectors.

The Company expects to report a Statutory Pre-Tax Profit just below GBP1.0 million for the half-year (H1 FY 23: GBP0.0m).

Cash inflow during H1 amounted to GBP0.6m, resulting in a 30 September 2023 net cash balance of GBP6.3m (31 March 2023: GBP5.7m).

The Company won over 100 new clients in H1, including a global top three advertiser, a leading global breakfast foods company, a leading European car manufacturer, a leading budget airline, a 'big four' UK supermarket, and a multinational consumer goods company.

Commenting on the trading update, CEO James Gregory said: "The sales momentum in the platform business continues, with platform revenue up 55% in Q2, 44% in H1 and all at an improved profit margin".

Interim Results

The Company intends to release interim results for the half-year ended 30 September 2023 on 6 December 2023.

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    Tel: +44 (0)20 7523 
  & Broker)                                       8000 
 
  Simon Bridges / Andrew Potts / Harry Rees 
 

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END

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