System1 Share Discussion Threads

[topvest] 23/6/2022 11:52

I would be surprised at directors selling anything material at this level. Aren't they trying to materially lower the share count for when the data business takes off and then exit at that time?

[longshanks] 23/6/2022 08:58

NFC not NFT

[longshanks] 23/6/2022 08:57

Most positive aspect, is that they seem to have turned a corner in terms of trading.Personally I am a bigger fan of dividends than share buy backs unless the buy back is to cancel the shares. It sounds like JK is ready to sell down more of his holdings and that is the real reason.Not sure I like the story here much. That said, NFT have been hit hard recently with their bid for SAA but trading is surging ahead and in the US in particular. Perhaps SYS1 is seeing the same level of recovery.

[topvest] 22/6/2022 19:46

Another interesting development today. Buy-backs certainly make sense if they truly believe that a 1bn exit (or anything like it) is achievable in the medium term.

[topvest] 27/4/2022 21:32

The investor presentation was quite reassuring, so I will hang in there. Its a great product set and it is getting traction. The Test my idea product being launched soon should only help. Patience still needed.

[p1nkfish] 27/4/2022 08:31

Hmmm. I didn't find it a good read. Will probably do very well but no regrets at having exited on run- up. Certainly keeping an eye on it. I hope it does very well.

[topvest] 27/4/2022 08:11

Trading update. Revenue pretty much in line. Data growth slowed in Q4 a tad. Major restructuring not taking place, so consultancy operation being retained. This seems sensible in the medium term. US management team addressed. Looks like a flattish H1 next year, with hopefully growth in H2. Investor call at 2pm. Presumably they will recommence a buy-back after the AGM given the large cash pile.

[p1nkfish] 30/3/2022 10:32

Ebiquity is a good partner going forward. They have a global data pool unmatched by any other in the space. If SYS1 want to get to the heights they suggested a while back EBQ can help. My money is on EBQ getting to $1Bn first if either manage it at all. Operational metrics for this past year have really turned and gaining traction. Together they can offer some interesting capabilities neither could do alone.

[p1nkfish] 23/3/2022 23:04

Just generally interesting that they are working together.
Burden maintaining his holding looks good.
No idea if he just finished his job or if there's more to it.
The tightly held float and buyback is keeping this up as much as anything else in my opinion.

[topvest] 23/3/2022 19:56

Yes, well spotted. It doesn't look a particularly big deal for SYS1. See Stefan Barden has now gone. Either job done, cost cutting or falling-out. Any thoughts?
Share price holding up OK with the buy backs.

[p1nkfish] 22/3/2022 22:17

Sys1 partnered with EBQ.

[topvest] 11/3/2022 19:43

Thanks for the link Maynard - a very well written summary.

[tmfmayn] 06/3/2022 12:55

SYSTEM1: Data Services Reaching 43% Of Revenue Supports Long-Term ‘Platform’ Ambitions Although Q4 Consultancy Warning Emphasises Risk Of Transition Mishaps #SYS1


"An influx of new Data clients suggests the partnership with ITV is working"


[p1nkfish] 22/2/2022 21:48

I think they have burst their balloon. Not just the loss of business but loss of confidence in management's ability to forecast with confidence = increased risk/uncertainty.

Just mho.

[adamb1978] 22/2/2022 10:59

The 13 day gap between the previous trading statement and this one is a large part of the difficulty with today's announcement.

The consulting part should be very forecast-able, so this sudden drop suggests either they have a limited/no pipeline of projects such that even if one customer cancels something, they dont have replacement projects which can be brought forwards OR they have a very very large customer and a cancellation by them is too big to be replaced.

I think H2 will now be loss making given H1 PBT was £1.3m and the forecast before today was £1.8m for the year, so now £0,8m for the year in total. So perhaps 6p-7p EPS, which is low but you can look past that given the cash balance and if you feel you have a good view on where next year is heading

The problem now is that the future is very uncertain given the slowig data part in Q3 and now this. Plus the cost base is fatter - this sort of business should be generating say 15%-20% operating margins - if they can get to that then the price now looks cheap, but H1 was 11% and the FY will be around 5% I think

All highly uncertain with SYS1 now I'm afraid (aside from the cash in the bank)

[pugugly] 22/2/2022 10:30

Yet another board making, with hindsight, a strategically wrong buyback decision wasting shareholder funds down the drain buying back shares over the last month at significantly higher prices than current price-

Message communicated they - for some reason - had lost touch with the progress of the sales teams when they took the decision to commence the buyback programme on " 7 January 2022 Share Buyback Programme

System1 Group PLC (AIM: SYS1), the marketing decision-making platform, announces its intention to commence a share buyback programme (the "Buyback Programme"), using the Company's existing cash resources to make market purchases of System1 ordinary shares for an aggregate value of up to GBP0.75 million (the "Maximum Amount") in order to enhance shareholder returns and to satisfy obligations in relation to employee share schemes.

The Company has entered into an agreement with its broker, Canaccord Genuity Limited ("Canaccord Genuity"), to carry out purchases under the Buyback Programme on its behalf on an irrevocable and non-discretionary basis. The Broker will make its trading decisions under the Buyback Programme independently of, and uninfluenced by, the Company. The Company has agreed the Buyback Programme will commence immediately and run to no later than 31 March 2022". .

Very lucky however sale by Kearon in November " that John Kearon, Founder and Executive President of the Company, sold 100,000 ordinary shares ("Shares") at a price of 320 pence each. Following this transaction, Mr. Kearon holds 2,818,235 Shares, representing 21.96 per cent of the issued share capital of the Company.

However only a small percentage of his holding so he is certainly the biggest loser today. If he had suspected (but of course not known of) problems ahead might have sold more. So something seriously gone wrong after his sale decision but reason for slowdown not clear (to me anyway from the rns)

Prominent Shareholders
No. of 1p ordinary shares % of voting rights
John Kearon (Director) 2,818,235 21.85%
University of Notre Dame 1,200,000 9.30%
Inv.AG f. langfr. Invest. TGV 1,020,000 7.91%
Ruffer Investment Mgt 770,000 5.97%
Motley Fool Funds Trust 645,000 4.33%
Ennismore Fund Management 558,012 5.00%
Compagnie Odier SCA 557,476 4.32%
Heritage Capital Management UK 494,342 3.83%

One to watch to see how the sales/contracts/revenue position is improved (imo) before taking action.

[topvest] 22/2/2022 10:20

All a bit disappointing. Cash position is still good. Data is the future and so there is some risk on the consultancy revenues if they are spending most of their time on the data side. Q3 data announcement was already disappointing, so Q4 equally so. Still optimistic long term. Remember, that they had always warned of significant cost increases this year as 1. they are investing more; and 2. Last year had lots of furlough income. We will no doubt see buy-backs support the price at the £2.50 level. It's actually good news for the company to buy-back the shares 50% off!

[p1nkfish] 22/2/2022 09:29

Management certainly took eye off the ball.
No excuses for that.

[boonkoh] 22/2/2022 09:05

Management must think we're idiots. Clearly something else wrong going on, not just the £1m revenue loss from consultancy.A £1m revenue loss does not directly produce a £1m PBT loss. No business has 100% operational gearing. You can't trust these guys, they are hiding something and not doing a good job at it.Probably costs increase (ie headcount, etc) overran but no good financial controls and realised too late to warn the market. But then conveniently a project loss came along to use as a flimsy excuse.

[adamb1978] 22/2/2022 08:56

Implies that H2 will be loss-making right?

[eezymunny] 22/2/2022 08:41

Err f/c was 1.8m pretax, so 1m announced so late in the year is rubbish by any standards IMO...

It was easy to see this coming IMO. Directorspeak and all that.

[babbler] 22/2/2022 08:32

way overdone for 1m less profit no? Almost 20m wiped off mcap.