System1 Share Discussion Threads

[longshanks] 18/9/2019 17:36

About a month away from the TU.Not expecting any fireworks myself at this stage. I estimate we are still about a year away from seeing the benefits (or not) of the investment in AdRatings paying off.

[tiger60] 17/9/2019 13:35

About time for an update? This has been drifting for a while now.

[gsbmba99] 07/6/2019 10:25

Forgot to mention the 23% increase in number of clients which seems very encouraging but, sice revenue was flat, also implies existing customers were spending less. I still wonder if there's something going on within Communications where the large price declines have been offset by volume growth but with a net flat revenue result. Eventually you get revenue growth as you pass the 1 year mark of the price decline. Pure speculation on my part.

[gsbmba99] 07/6/2019 10:16

Results seemed as expected. It would appear they aren't yet charging for the new AdRatings product as there wasn't any associated revenue. They are continuing to invest so let's hope the feedback from trialists is good enough to warrant this commitment. Not much evidence of the top line growth needed to lift the EPS to meet this year's forecast. There's been a reasonable amount of volume at 245p so hopefully the results roadshow is off to a good start. Cannaccord appears to have reiterated 400p price target.

[soultrading] 07/5/2019 15:21

Time to buy more?

[topvest] 24/4/2019 21:32

The past may not necessarily be a good guide. BrainJuicer was always a good business, but always with a higher than expected market valuation which always put me off buying. Still watching, but not sure about the merits.

[longshanks] 24/4/2019 13:45

Amazing to think this was £10 not too long ago - but then again that was before they gave the market a series of profit warnings.A bounce back towards £4 is justifiable given they are still making money and now giving positive noises about the direction of travel. My only caveat is that the Ad agency business needs to prove itself but I like the risk profile very much given it is a strong dollar earner.

[soultrading] 20/4/2019 18:30

This will easily be four or five pounds a share in the not so distant future.

12 million shares in issue
Class team
Solid products and services in a robust money making enviroment. Especially the latest addition

I think this will do really well.

[tiger60] 19/4/2019 20:28

You will also be a lot older

[soultrading] 18/4/2019 07:56

At £5,£7.50 or £10 I will be very happy.

[soultrading] 18/4/2019 07:56

System1 Group PLC (AIM: SYS1)

("System1", or "the Company")


Grant of Options


Following consultation with its major shareholders, the Company announces that it has granted awards under an equity incentive plan to Stefan Barden, an advisor to the Board and PDMR, subject to approval by shareholders at the Company's next Annual General Meeting. In the event the approval is not obtained, the awards will lapse.


The awards comprise zero priced options over 300,000 shares (approximately 2.4% of the Company's voting share capital), and are split into three equal tranches. They are designed to vest only if a significant step-change in gross profit is achieved; being growth rates of approximately 100%, 200% and 300% for each of the three tranches respectively.


Performance Conditions

100,000 zero-priced stock options ("Tranche One Options")

· Vest: when the Company's audited Gross Profit in any financial year exceeds £45m, subject to the Company's share price exceeding £5.00 per share for a 30 day consecutive period prior to the lapse date;

· Lapse date: 30 July 2024;

100,000 zero-priced stock options ("Tranche Two Options")

· Vest: when the Company's audited Gross Profit in any financial year exceeds £68m, subject to the Company's share price exceeding £7.50 per share for a 30 day consecutive period prior to the lapse date;

· Lapse date: 30 July 2029;

100,000 zero-priced stock options ("Tranche Three Options")

· Vest: when the Company's audited Gross Profit in any financial year exceeds £90m, subject to the Company's share price exceeding £10.00 per share over a 30 day consecutive period prior to the lapse date;

· Lapse date: 30 July 2032.

[soultrading] 18/4/2019 07:54

Great incentive.

[dangersimpson2] 15/4/2019 14:06

I don't get why they are so vague on reported profits. They give an exact profit figure for the core business of £3.7m and then say Ad ratings cost £3.1m, some of which will be expensed and some capitalised. Means their reported profit could be anywhere from £0.6m to £3.7m - share-based payments + exceptional rates rebate.

They must be able to guide better than this even if they don't have the precise level of capitalisation signed off by auditors.

[woozle1] 15/4/2019 13:56

The lack of top line growth is a worry. Good to see the costs are under control. Very sketchy dets on Ad Ratings. Still too early for me.

[longshanks] 15/4/2019 08:17

Good to see the business stabilising: and clearly still strongly cash generative.The Ad rating business is slowly gaining some traction - very slowly. It is too early yet to assess how successful it will be and - indeed - if it will be. The company is confident enough to reinvest a significant chunk of cash into it for the next year or so - let's hope it is well founded.

[capercaillie] 15/4/2019 07:36

Looks well set for today.

[gsbmba99] 05/2/2019 21:26

Apparently the Superbowl ads this year were more entertaining than the game. SYS1 was live scoring the ads ( ). If you are a real ad person you can compare results to other industry professionals - The 5-star Microsoft ad generated a fair amount of buzz -

[gsbmba99] 15/11/2018 08:56

If I've read the terms and conditions section 5. "Charges" correctly and counted properly, there are 25 "categories" (26 in US) that are separately charged - .

[gsbmba99] 09/11/2018 07:06

W1 - I think I misread your comment. At the AGM Kearon and Hunt said the business line of rating ads before they are televised was going well. I think this is called "Communications". Not to be confused with AdRatings which at the time of AGM was in friends and family mode but has since soft launched.

[gsbmba99] 08/11/2018 20:10

W1 - that's true. But the AGM was on 25 July. Since then, the AdRating service has undergone a soft launch.

[woozle1] 08/11/2018 17:48

gsbmba99,
Maynard Paton said in his blog of the AGM that Adrating was experiencing teething probs and that is was just been trialled by "friends and family".
w1

[gsbmba99] 08/11/2018 13:15

The results presentation has a couple of snippets( ). P. 15 says AdRatings covers "8 core industries" lending more to a broad interpretation of "category". It also says that it covers all UK/US ads over 12 months but AdRatings website says "since May 2017". AdRatings database count is now up to 27k which, I imagine, skews very heavily to the US. What continues to intrigue me is the cost reduction breakthrough they appear to have achieved for the AdRating process itself. From "around £20-30k (more for multi-country studies) over a 3-4 week period" to "£1k per ad when part of a larger study" at the AGM. This usually leads to demand stimulation. Hunt and Kearon both said at the AGM that the ad rating product was doing very well. I thought it might show in the results. Could it be that the radically lower price point is (temporarily) masking underlying "volume" performance?

[tmfmayn] 08/11/2018 12:03

H gsbmba, yes I was surprised at the number of categories, too. I had thought like you that the categories were much broader. I suspect discount s may be available for multiple categories. You wrote that you attended agm. I was there too, and should be there next year.

[gsbmba99] 07/11/2018 22:07

Maynard Paton has written a blog post on the 1H results which is worth reading: There's also a website up for AdRatings. There's rather a lot more "categories" than I had anticipated. I had understood it was £10k/year/region/category. But there are "categories" like "Consumer current account" and "Consumer savings account". Are Santander and Halifax meant to pay £20k for UK access because they are in two "categories"? Or do they pay £10k for the category "Financial"? Not sure.

[modform] 07/11/2018 14:53

Looks like a good recovery stock with the possibility of some future recurring revenue and better revenue visibility