System1 Group PLC Trading Update (9846B)
14 Ottobre 2020 - 8:00AM
UK Regulatory
TIDMSYS1
RNS Number : 9846B
System1 Group PLC
14 October 2020
Press Release 14 October 2020
System1 Group PLC (AIM: SYS1)
("the Company" or "System1")
Trading Update
System1, the marketing services group, issues the following
update on trading for the six months to end-September 2020. The
Company will announce its interim results on 17 November 2020.
Overall, the first half of the current year (H1) saw a marked
reduction in sales compared to the prior year, due partly to the
impact of Covid-19 on the business of many of our clients. The
downturn was particularly pronounced in the US, against a very
strong H1 2019/20, while the UK and Asia Pacific produced
double-digit revenue growth. Both Turnover and Gross Profit for the
half year are expected to be some 25% below the comparable 2019/20
period.
The Company is reviewing its office footprint for lease
impairment in view of the ongoing Covid-19 pandemic and new ways of
working. This review may give rise to an impairment charge, but any
such adjustment will be a non-cash charge and will be confirmed at
the release of Interim Results.
Operating Costs were managed down as part of System1's Covid-19
response, and the business took advantage of some government
support schemes, notably in the US and the UK. System1 continued to
invest in support of future growth in H1, particularly in product
innovation and automation. H1 Operating Costs excluding any
impairment charges were some 22% lower than in H1 2019/20.
Group Pre-tax Profits (excluding any impairment charges) are
expected to be some GBP0.6m in H1, approximately GBP0.8m lower than
in the comparable period.
System1's financial position remains strong. Despite lower
profits, period end net cash was GBP5.1m, compared with GBP4.1m at
end-March 2020. Approximately half of the improvement in H1 was due
to receipt of an R&D tax credit related to FY 2018-19, and a
similar claim for FY 2019-20 is being prepared.
Given continued uncertainty over the medium- and longer-term
impact of Covid-19, we are continuing to suspend financial guidance
for the time being. No 2020/21 interim dividend will be paid (prior
year 1.1p).
The Company can be found at www.system1group.com .
For further information, please contact:
System1 Group PLC Tel: +44 (0)20 7043
1000
John Kearon, Chief Executive Officer
Chris Willford, Chief Financial
Officer
Canaccord Genuity Limited Tel: +44 (0)20 7523
8000
Simon Bridges/Andrew Potts
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END
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