System1 Group PLC Trading Update (6748A)

TIDMSYS1

RNS Number : 6748A

System1 Group PLC

24 January 2024

 
    24 January 2024

System1 Group PLC (AIM: SYS1)

("System1", or "the Company", or "the Group")

Quarter 3 Trading Update

Increase in Full Year Guidance

System1, the marketing decision-making platform www.system1group.com today issues an update on trading for the quarter ended 31 December 2023 (Q3).

 
 Revenue GBP million                  Q3     Q3     Q3     YTD    YTD     YTD 
  - unaudited 
                                     FY24   FY23   % YoY   FY24   FY23   % YoY 
----------------------------------  -----  -----  ------  -----  -----  ------ 
 Predict Your (data)                 5.2    3.4     53%    14.2   9.6     49% 
 Improve Your (data-led 
  consultancy)                       1.0    0.9     16%    2.9    2.3     25% 
 Platform Revenue                    6.2    4.3     46%    17.1   11.9    44% 
----------------------------------  -----  -----  ------  -----  -----  ------ 
 Other consultancy (non-platform)    1.8    2.0     -6%    4.2    4.9    -13% 
 Total Revenue                       8.0    6.2     29%    21.4   16.7    28% 
----------------------------------  -----  -----  ------  -----  -----  ------

Quarter 3

System1 made further progress on delivery against the strategic review objectives that the Board set out following the 2022 strategic review, growing Q3 platform revenue by 46% versus Q3 FY23.

Predict Your (data) revenue grew by 53% on the comparable prior-year quarter to GBP5.2m and Improve Your (data-led consultancy) revenue increased by 16% over the comparable prior-year quarter to GBP1.0m, bringing total platform revenue to GBP6.2m, up 46%.

Total Group revenue grew by GBP1.9m to GBP8.0 million, up 29% on Q3 FY23, with strong growth in the US, Europe and the UK.

Nine Months to 31 December 2023

Predict Your (data) revenue grew by 49% on the comparable prior-year period to GBP14.2m and Improve Your (data-led consultancy) revenue increased by 25% over the comparable prior year to date to GBP2.9m, bringing total platform revenue to GBP17.1m, up 44%.

Total Group revenue grew by GBP4.7m to GBP21.4m, up 28%, with year-to-date gross profit margin at 87% remaining strong.

The Group's Q3 period end cash balance rose to GBP6.4m (31 March 2023: GBP5.7m).

New Clients and Partners

System1 won over 60 new clients in Q3, and over 200 new clients in FY24 Q1 - Q3. These new clients include Pfizer, M&S, Tesco, easyJet, Toyota, Muller, B&Q, and Just Eat.

New partnerships were secured with one of the leading ad-supported broadcast and cable networks in the US as well as Roku TV, Radiocentre, Aardman Animations and Fuse OMD Worldwide.

Outlook

The Group enters the final quarter of the year with good trading momentum following a consistently strong December quarter. As a consequence, the Board believes that the Group is now well placed to deliver results ahead of previous expectations. Revenue for the current financial year is expected to be at least GBP29 million (FY23: GBP23.4 m) and statutory profit before tax to be comfortably above GBP2 million and materially ahead of current consensus (FY23: GBP0.7m).

Commenting on the trading update, CEO James Gregory said: "We continue to deliver quarter on quarter revenue and profit growth, exceeding GBP8m revenue for the last quarter and increasing platform revenue by 46%. We are executing our go-to-market plans and building out ever-improving customer propositions, creating the momentum to grow further over the coming years".

Capital Markets Day

The Company will be holding a Capital Markets Day via Investor Meet Company at 3:00pm GMT on Wednesday 7 February 2024.The meeting is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9:00am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet System1 Group PLC via: https://www.investormeetcompany.com/system1-group-plc/register-investor

Investors who already follow System1 Group PLC on the Investor Meet Company platform will automatically be invited.

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 / Harry Rees

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