System1 Group PLC – Interim Results
System1, the marketing services group, today announces its results for the six-month period ended 30 September 2019 (“H1”).
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6 months ended 30 September Unaudited |
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2019 |
2018 |
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£m |
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Restated for IFRS 16* |
Previously reported* |
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Revenue |
13.73 |
13.18 |
13.18 |
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Gross Profit |
11.59 |
10.80 |
10.80 |
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Underlying Overheads |
(9.19) |
(8.90) |
(8.88) |
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Normalised Profit Before Tax |
2.40 |
1.90 |
1.92 |
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Ad Ratings operating costs |
(1.10) |
(1.09) |
(1.09) |
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Share Based Payments |
0.10 |
– |
– |
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Exceptional Credit |
– |
0.25 |
0.25 |
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Profit Before Tax |
1.40 |
1.06 |
1.08 |
Highlights
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o |
4% growth in Revenue to £13.73m (2018/19: £13.18m), 2% in constant currency |
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o |
7% growth in Gross Profit to £11.59m (2018/19: £10.80m), 4% in constant currency |
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o |
26% growth in Normalised Profit Before Tax (excluding Ad Ratings costs) to £2.40m (2018/19: £1.90m*) |
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33% growth in Profit Before Tax (including Ad Ratings costs) to £1.40m (2018/19: £1.06m*) |
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o |
34% growth in Profit After Tax (including Ad Ratings costs) to £0.89m (2018/19: £0.67m*) |
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o |
33% growth in diluted Earnings Per Share to 6.9p (2018/19: 5.2p*) |
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o |
£1.17m investment in Ad Ratings, of which £0.23m has been capitalised and £0.94m expensed (the £1.10m of Operating Expenditure in the table above includes £0.16m of amortisation) |
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o |
£4.10m Cash at 30 September 2019 and no debt (31 March 2019: £4.32m and no debt) |
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Maintaining interim dividend at 1.1 pence (2018/19: 1.1 pence) |
* The Company has implemented IFRS 16 (leases) and as a result restated its prior year results.
Commenting on the Company’s results, John Kearon, CEO of System1, said:
“We continue to build out our new world class Agency by leveraging our unique, Advertising Effectiveness IP, data and services. At a time of much change sales, profits and industry profile are growing steadily.”