TIDMSYS1
RNS Number : 8896V
System1 Group PLC
12 April 2023
12 April 2023
System1 Group PLC (AIM: SYS1)
("System1", or "the Company", or "the Group")
Final Quarter Trading Update
System1 today issues an update on trading for the quarter ended
31 March 2023 (Q4).
FY23
-----------------------------------------------------------------------------------------
Revenue GBP million - H1 H2
unaudited * Q1 Q2 Q3 Q4 FY
---------- -------------
Jun-22 Sep-22 Dec-22 Mar-23 Mar-23
---------- ---------- ------------- ------------
Predict Your (data) 2,964 3,189 6,153 3,400 4,107 7,507 13,660
Improve Your (data-led
consultancy) 752 694 1,446 862 1,163 2,025 3,471
Standard (platform
revenue) 3,716 3,883 7,599 4,262 5,270 9,532 17,131
---------- ----------- ----------- ----------
Other consultancy
(non-platform) 1,529 1,368 2,897 1,964 1,354 3,318 6,215
Total Revenue 5,245 5,251 10,496 6,226 6,624 12,850 23,346
---------- ----------- ----------- ----------
* The Company has disclosed additional information in relation
to the breakdown of revenues, which it intends to provide going
forward. All numbers in this announcement are unaudited and
therefore may be subject to change.
During Q4, the Company made substantial and measurable progress
towards the strategic objectives that the board set out following
the strategic review, specifically growing our standard Predict
Your and Improve Your products (platform-based data and
consultancy) to a point where they represented 80% of revenue in
Q4.
Predict Your (data) revenue grew by 67% on the comparable
prior-year quarter to GBP4.1m, a quarterly record, and by 40% for
the financial year to GBP13.7m. Improve Your (data-led consultancy)
revenue increased by 95% over the comparable prior-year quarter and
by 29% for the financial year overall. Standard product revenues
therefore grew by 73% on Q4 FY22 and by 38% for the financial year
and represented 80% of revenues in Q4 and 73% for the financial
year.
For the year as a whole, Other Consultancy (non-platform)
revenue was GBP5.5m lower at GBP6.2m. In H2 Other Consultancy
revenue grew on H1, following three successive periods of
half-on-half reduction, reinforcing the Board's belief that the
decline in non-strategic revenue is substantially behind us.
Total Group revenue rose by 26% in Q4 and 9% in H2 ending the
year at GBP23.3m, 3% lower than FY22 (standard platform revenue
+38%, Other non-platform consultancy -47%).
Excellent progress was made in the US in Q4 where we won new
mandates from 3 of the country's 25 biggest advertising spenders,
including the largest. The US delivered its highest half year of
revenue since FY21, and standard product revenue increased by 23%
for the year as a whole.
Following the launch of Test Your Idea, Innovation product
revenue increased by 28% in H2 versus H1. Communications products,
primarily Test Your Ad, continued to grow by over 20% H2 on H1.
Brand grew by 12% year on year, helped by the first full year of
Test Your Brand.
The improved revenue performance in H2 is expected to bring a
return to profitability at adjusted and statutory levels for H2 and
also for the year as a whole, based on the unaudited management
accounts, and the Board now anticipates that profit for the year
ended 31 March 2023 will slightly exceed its previous expectations.
As indicated in the 23 February 2023 trading update, there was a
cash inflow during Q4, resulting in year-end net cash of
GBP5.7m.
Commenting on the results, CEO James Gregory said: "I am
delighted with the upturn in performance in the second half-year.
The profitable growth in our standard, platform-based products in
the US and elsewhere demonstrates that we have the right strategy,
business model and management team."
General Meeting 21 April
The company has called a general meeting for 21 April 2023 to
consider four resolutions proposed by shareholders Stefan Barden
and James Geddes ("Requisitioning Shareholders"). The Board
believes that the latest quarter's trading performance demonstrates
that the company's product and go-to-market strategy is correct,
and that management is executing the plan effectively. We repeat
our recommendation in the Circular dated 24 March 2023 that the
Board considers that all the resolutions proposed by the
Requisitioning Shareholders are not in the best interest of the
Company and the shareholders as a whole, and that the Board will be
voting against all of them and unanimously recommends that
shareholders do the same.
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
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END
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