System1 Share Discussion Threads

[nchanning] 24/1/2024 09:14

Over 50% upgrades to next years PBT numbers by Cannacord . High gross margins mean spectacular operating leverage . Revenue forecasts for next year look very beatable as well . Just 13 % growth predicted for a business that is currently growing way faster than that . Any extra revenue basically flows straight to the bottom line . Potential for earnings to go parabolic here

[saints98] 13/12/2023 15:40

Presenting on Investor Meet Company at 11.45am next week (Monday 18th)in case of interest

[nchanning] 13/12/2023 10:35

Just a small position for me as it's a fast moving industry where the business model could easily be upended . But close to 90% gross margins growing at 40% gives the potential for absolutely explosive growth . Shrinking consultancy is obscuring platform growth but not much left to shrink .

[eezymunny] 06/12/2023 12:32

If that were the case NChanning (bonuses etc) then you'd hope they have a bonus scheme for signing the next lot of customers i.e. it's not exceptional.

Really, with no justification from the company, this really is the most pathetic nonsense IMO. Shameful...

[nchanning] 06/12/2023 11:30

It seems very unusual , although I guess there's an argument for very sticky software companies that if there are bonuses for acquiring customers that won't be repeated the true steady state profitability of the business is being understated . Not sure this product is that sticky though ...

[cockerhoop] 06/12/2023 11:17

Even Canaccord suggest adjusted pbt is £1m rather than the £1.9m claimed. I presume it's as you suggest NChanning but surely it's not justifiable and creates the wrong impression regards the nature of the set of accounts.

[nchanning] 06/12/2023 11:06

Can anybody help me understand the managements arguments for adjusting out bonuses and commissions ? Is it that they are one off costs of acquiring customers that won't be repeated ?

[cockerhoop] 06/12/2023 09:34

I don't think the litigation settlement is £300k boonkoh. Other operating income was £330k rather than £224k so perhaps £100k.

Eezy - agree regards adjustments, especially bonuses & commissions - ludicrous.

[boonkoh] 06/12/2023 08:59

In fairness, they only state their statutory EPS and don't give an adj EPS number. But that statutory includes the £0.3m settlement from litigation! Which should be adjusted out too as its a one-off?Either way you slice it.... There's huge Operational Gearing here. They're well staffed up in terms of Sales & Marketing so all they need to do is knock on more doors, get more contracts signed.One potential red flag for me: no mention of churn rate or retention rate. If this was good, surely they'd shout about it?

[z1co] 06/12/2023 08:44

Agreed excellent H1 results and more to come in H2:

Gross profit margins has increased to 87.8%

The company won 136 new platform clients in H1 a massive increase over last year.

[boonkoh] 06/12/2023 08:36

Indeed, especially if you take their adjusted PBT. I'm inclined to take maybe half of the difference at face value. Would give an adj EPS closer to 8p.

[babbler] 06/12/2023 07:35

Impressive.

[simon gordon] 26/11/2023 08:24

SYS1 mentioned a number of times on this discussion:

On Strategy - 18/11/23

Mark Ritson talks about his controversial column in Marketing Week

Is America truly lagging behind the rest of the world in its understanding and application of marketing effectiveness principles? We talk about what Mark wrote in his Marketing Week column that caused quite a stir.

[frazboy] 30/6/2023 14:48

So they're keeping the mutually agreed settlement confidential but it will, if in any way material, appear on the balance sheet. So, I'll presume it's immaterial. Good that it's behind us tho.

[hydrus] 21/4/2023 12:00

Vote as expected - the Board can focus on the business again now and things are looking positive in that front.

[hydrus] 17/4/2023 13:46

Thanks for sharing. I've voted against. I think the recent progress means the Board have the advantage now.

[tmfmayn] 17/4/2023 10:40

SYSTEM1 UPDATE: Following SYS1's RNS on 13 April, Stefan Barden has provided the following statement for publication on my blog:



Maynard

[longshanks] 13/4/2023 08:08

Well done Maynard. They may have ignored you at the AGM, but they really know who you are now!

[hydrus] 13/4/2023 07:32

The soap opera continues.......doesn't seem like the most polished management change attempt to me but what do I know. I hope it fails. With the trading update surely shareholders can't be sacking off the 21% share holding founder at this point? Imagine the pressure on the share price of he leaves alongside other key staff. Would surely undermine the whole thing.

[hydrus] 12/4/2023 14:33

True APAD. Could be smoke and mirrors I guess. Revenue increase looks decent though.

[apad] 12/4/2023 13:58

Mmmm, Hydrus.
A 'mandate' is an authority to do something.
So, can they sign up big spenders to spend very little with a mandate?
😊
apad

[hydrus] 12/4/2023 13:52

Rainbows, bluebirds and unicorns I'd say ;)Definitely an interesting point in SYS1 development but sustainability of growth is of course the key question. If they sign some more big spenders in this quarter then you may review your exit decision? Alternatively your exit position might be a bit tidier.

[apad] 12/4/2023 13:47

Can't fault that perspective, Hydrus.
So, when the existing management win on the 21st. there will be another share price jump and the future will be rainbows and bluebirds?
apad