System1 Group PLC Trading Update (1159W)
15 Aprile 2019 - 08:00AM
UK Regulatory
TIDMSYS1
RNS Number : 1159W
System1 Group PLC
15 April 2019
Press Release 15 April 2019
System1 Group PLC (AIM: SYS1)
("System1", or "the Company")
Trading update for the 12 months to 31 March 2019
System1, the marketing services group, today releases the
following Trading Update for its financial year ended 31 March 2019
(2018/19).
2018/19 saw our Consultancy business, which comprises mainly our
market research activities, together with a small advertising
agency, stabilising after a difficult 2017/18. Gross Profit, the
Company's main top-line performance measure, was slightly down for
the year as a whole at GBP22m (-1%). Despite continued pricing
pressure, Gross Profit in the second half of the year was 4% ahead
of that achieved in H2 2017/18.
Operating Costs were tightly controlled and, excluding the
Company's investment in its new Ad Ratings service, were some 9%
lower than in 2017/18 as the Consultancy business achieved higher
levels of efficiency.
As a result, System 1 has generated underlying Pre-tax profits
for the year, excluding Ad Ratings, share based payments and a
one-off business rates rebate, of around GBP3.7m, approximately 80%
higher than in 2017/18.
During 2018/19 System1 invested heavily in the development of
its new Ad Ratings subscription service. Ad Ratings enables clients
to compare the effectiveness of their advertisements with that of
competitors, and to correlate advertising effectiveness with media
spend. Total investment during 2018/19 has been GBP3.1m, of which
some will be expensed and some capitalised. We continue to refine
and enhance the new service, which is being trialled by a number of
clients. Looking forward, we plan to continue investing in the
product, and to launch at scale during 2019/20.
Despite this high level of investment, System1's financial
position remains strong. At the year end the Company had a cash
balance of GBP4.3m (31 March 2018: GBP5.7m), and no debt.
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
James Geddes, Chief Financial Officer
Canaccord Genuity Limited Tel: +44 (0)20 7523
8000
Simon Bridges / Emma Gabriel
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END
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