System1 Share Discussion Threads

[tmfmayn] 12/3/2023 11:48

Hi VelocyTongo

I think they can count, as the AGM last year saw 3.3 million votes (26%) against the re-election of certain non-execs and suggested some shareholders were already unhappy. The strategic review then promised to assess the board's composition, but the (poor) H1 results simply revealed John K moving to the States to generate extra sales, and the COO becoming CEO.

Among the top 8 institutional shareholders, two are German and two are American, who may not follow City protocol when casting their votes. The rationale for the requisition seems clear to me -- despite good products that have been validated by partnerships with ITV and LinkedIn, SYS1 has underperformed over time, is currently losing money and fresh leadership is required to fully exploit the group's products for shareholders.

Maynard

[velocytongo] 10/3/2023 11:07

Very interesting. I hope they can count because John Kearon has 22% of the shares and if he votes against them, they will have their work cut out. Moreover, UK institutions rarely vote against the incumbents. I'd also like to see the reasons for the requisition notice.

[longshanks] 07/3/2023 07:42

Oh dear. Trouble at t'mill.Interesting to see two such prominent previous employees seeking such significant board changes.

[velocytongo] 28/2/2023 15:03

This looks like it's completing the transition to a data business, just as YouGov did 10-12 years. The key for You was a US acquisition that has hugely driven growth and led to the share price rising from 37p to 1000p. With so many so short form internet adds coming out the whole time (as opposed to just testing TV adverts) the market is getting bigger the whole time.

[topvest] 30/11/2022 20:41

Unfortunately, the data business is eating the consultancy business and so they are replacing the previously profitable consulting work with loss making data revenue. Whilst the data business is interesting, volumes need to increase much faster than they currently are. It all looks a bit of a mess.

[apad] 30/11/2022 12:29

So the strategic review is kicked down the road to 28 Feb Capital Market Day.
Also, it seems to have gotten more vague - quite an achievement.

One of my mantras is that rapidly growing revenue in a small cap gives the management options about where to introduce change. Stagnation in revenue is a pair of handcuffs.

Yours looks to have been a good decision, longshanks.

apad

[apad] 30/11/2022 11:46

Doing an AI project with Warwick Uni doesn't inspire confidence.
apad

[eezymunny] 30/11/2022 11:23

Ultimately, success will depend on quality of the automated testing stuff. Do they have enough investment power to be best-class. Compare with a giant like Kantar

hxxps://www.kantar.com/marketplace/solutions

Bigger=bigger R&D budgets=better products=winner. You'd think...

SYS1 too small=loser?

[longshanks] 30/11/2022 09:22

Looks like they haven't investigated a sale of the business as part of the strategic review.The process seems to have simply concluded that JK should be promoted to salesman in chief and move to the US to focus on raising revenue there.This seems more like a gut reaction than something thought through. I am not overly impressed.I completed my selling out earlier this month. I still like the business but think it will get weaker before it gets better.

[simon gordon] 30/11/2022 08:27

Reading that RNS the Founder just comes across as erratic. Chopping and changing. There is an underlying strategy but he looks like a juggler who keeps dropping his balls. The balls look interesting but the juggler erratic.

[topvest] 22/11/2022 21:25

Share price dropping badly doesn't bode that well. It doesn't look good.

[longshanks] 26/10/2022 20:26

Thanks for your YouTube post Maynard The AGM sounds shocking. I attended last year's virtual one and was frankly far from impressed with how they treat shareholders: it is almost like we are an undesirable relative.The tie in with ITV does appear to be one good thing that make this worth holding but it seems a trade sale may be an inevitable end for this company if it can't build further traction in the near term.

[topvest] 25/10/2022 16:10

Another poor update today. Odd the share price went up.

[tmfmayn] 23/10/2022 16:48

[Podcast] SYSTEM1 With Mark Atkinson And Maynard Paton #SYS1

I have recorded another podcast with my good friend Mark Atkinson. This time we talked about System1 after I attended the company's AGM. We cover what the company does, the chairman’s handling of the AGM, the protest votes against two non-execs and the strategic review that's underway.




Maynard

[tmfmayn] 23/10/2022 16:48

SYSTEM1: £100m Revenue Ambition Disappears Following Disappointing H2 Loss As Tender Offer Cancelled And Agitated Shareholder Initiates Strategic Review #SYS1

"SYS1 should right now be using its cash to i) protect its balance sheet, and ii) build its Data platform services, instead of becoming distracted by academic capital-allocation matters"

[p1nkfish] 11/9/2022 08:36

Over time I can envisage real-time engagement measurement harming SYS1. It is evolving rapidly. You might think more pre-screening (fine-tuning) would be necessary to have multiple ad variants ready so increasing demand for SYS1 type services?

It's a bit of a gamble.

[p1nkfish] 03/9/2022 09:25

The buyback did its job of helping some exit at a higher price.

[p1nkfish] 31/8/2022 16:17

Lots of changes in the space they operate including closing the loop rapidly on TV to measure and modify quickly. Changing so fast its hard to keep on top of.

These are scaling quickly. Too much background explanation needed to go into it all but will probably infuence SYS1 over time and I can't see it helping. Imagine collecting ad data from the response in real time and ability to "tweak" to optimise response. Best way to optimise. Smart TVs will help.





Today - 

[topvest] 31/8/2022 15:43

Yes, might be premature but if it was positive news they would have had a bid from one of their investors. The share buy back was keeping the share price up. A strategic review is normally a sign that things are not going well. I have a hunch that their data sales are flat lining as well. How reliant were they on ITV? Clearly the strategy isn't quite working. I should have sold earlier, but you live and learn.

[p1nkfish] 31/8/2022 14:29

More of a consultancy than a product baaed company?

[longshanks] 31/8/2022 13:35

Might be a premature decision topvest, but I understand the reasoning.Clearly the poor Q1 performance has continued and they need to take action - not least the shelving of the share buy back program.The wording of the RNS indicates a restructuring and possible halt to some of their activities - possibly closing down unprofitable offices/business offerings.However, it could also allude to them considering a trade sale: possibly having had an approach.As such I remain a holder albeit that I have substantially reduced my position this year.

[topvest] 31/8/2022 08:04

Didn't like this mornings update. I'm out.

"Following a review of the Company's recent performance, the board of the Company (the "Board") has decided to conduct a review of its strategic options for growing the business and increasing shareholder value (the "Review")."

Sounds like trading is not very good / getting worse.

Too many disappointments dressed up as good news...too much big talk and fancy numbers, poor actual delivery!

[topvest] 30/6/2022 10:59

Yes, that's a 7% holding (Investmentaktiengesellschaft für langfristige Investoren TGV) and now 5% through this new outfit www.mediqon-group.de which seems to be into many software platforms.

The latter seems to build majority stakes. I wonder if we might see a bid in the not too distant future. They have definitely spotted something they like!

[longshanks] 30/6/2022 09:59

Looks like SYS1 has a real fan base developing in Germany.