System1 Group PLC – Interim Results

System1 Group PLC – Interim Results

System1, the marketing services group, today announces its results for the six month period ended 30 September 2018.

As previously announced, the Company is making a significant investment in a new business line “Ad Ratings” and, for ease of prior period comparisons, is splitting its results into the existing business and Ad Ratings.

6 months ended 30 September

2017/18

2018/19

£m

Consulting

Ad Ratings

Total

Revenue

13.82

13.18

13.18

Gross Profit

11.39

10.80

10.80

Underlying Overheads

(10.29)

(8.88)

(1.09)

(9.97)

Underlying Pre-Tax Profit/(Loss)

1.10

1.92

(1.09)

0.83

Share Based Payments

(0.25)

Exceptional Credit

0.25

0.25

Pre-Tax Profit/(Loss)

0.85

2.17

(1.09)

1.08

Highlights

  • 5% decline in Revenue to £13.18m (2017/18: £13.82m), 3% in constant currency
  • 5% decline in Gross Profit to £10.80m (2017/18: £11.39m), 3% in constant currency
  • 74% growth in Underlying Pre-Tax Profit (excluding Ad Ratings) to £1.92m (2017/18: £1.10m)
  • 28% growth in Pre-Tax Profit (including Ad Ratings) to £1.08m (2017/18: £0.85m)
  • 26% growth in Post-Tax Profit (including Ad Ratings) to £0.68m (2017/18: £0.54m)
  • 26% growth in diluted Earnings Per Share to 5.3p (2017/18: 4.2 pence)
  • £1.59m investment in Ad Ratings, of which £0.50m has been capitalised and £1.09m expensed
  • £3.55m Cash at 30 September 2018 and no debt (31 March 2018: £5.78m and no debt)
  • Maintaining interim dividend at 1.1 pence
  • Final dividend may be reduced, depending principally on the scale of further investment in Ad Ratings and on opportunities to repurchase shares at an attractive valuation

 Commenting on the Company’s results, John Kearon, CEO of System1, said:

“We are excited about our new Ad Ratings service based on our tried and tested core IP – for its future potential both to support the existing consulting business, as well as provide a new scalable revenue stream.  Meanwhile we believe that as our new product configurations and more competitive pricing take hold, our existing business will continue to stabilise and in time return to growth.”

The Company can be found at www.system1group.com.

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