System1 Share Discussion Threads

[boonkoh] 08/7/2021 13:50

More than the usual trading volumes last few days. Results out on the 14th, will be very interesting.

[simon gordon] 07/7/2021 15:41

Fluent bull case from last year's Prelims - 30/6/20:

4) GENERATE NEW REVENUES. Although the number of annual subscribers to AdRatings is still low, it's proving a very effective way to sell System1's ad testing consultancy and a high proportion of our new ad testing clients are also choosing to subscribe.

In the last quarter of the year we launched Test Your Ad, to increase access to our testing and generate additional revenues from AdRatings. Users can upload and pre-test any ad and get next-day or even same-day predictions for a fraction of current costs. They see the likely performance of their ad and can compare it with all other ads in their category. It's early days, but the initial reaction has been extremely positive and ITV are promoting the service to all their advertisers. Test Your Ad is our online offering and AdRatings remains the name for our advert database.

The combination of the year's initiatives meant we grew ad testing Gross Profit by 8%, in a year in which System1's overall Gross Profit declined 2%. Over the last two years, ad testing has grown to the same size as innovation testing, which for many years has been the largest part of the business. Growth in ad testing has significant commercial advantage in being generally a sole-supplier, long-term partnership with clients, whereas innovation testing tends to be bought project by project from a roster of suppliers.

To create a far bigger business we have made a number of important senior appointments; Orlando Wood as Chief Innovation Officer, Mark Beard as Chief Technology Officer, Karen Wolfe as Chief Commercial Officer, Jon Evans as Chief Marketing Officer, Emma Cooper as Chief People Officer and Robyn Di Cesare as Global Director of Research & Guidance. There are two recent appointments to complete our Management Team for the future. Chris Willford joins as CFO and Stefan Barden currently an Advisor, is temporarily taking the vacant COO position. Chris brings huge commercial and financial experience having been UK Finance Director at Barclays PLC and Group Finance Director at Bradford & Bingley PLC, (FTSE 100 businesses), as well as working as a consultant with scale up media and tech business similar to System1. Stefan brings Tech, Data and Online experience, having been a FTSE 250 CEO and the CEO who in three years grew Wiggle from £140m turnover to £360m, to become Europe's #1 online sports retailer.

Over the last two years, we have reshaped much of the business, automated many of our products, generated increasing industry profile and created a management team capable of achieving our goal to become the world leader in predicting advertising effectiveness. There remains much to do, but we believe that we are further ahead than our competitors. There will be many more innovations in the coming year, as we continue to automate our predictions, increase System1's fame, attract new customers and drive revenues.

In summary, over the last year System1 has taken its leading research IP and created data products and assets to complement our historic consultancy services. We have been recognised by industry leaders in what we do and are firmly becoming the research industry's champion for creativity, backed by data. In the UK, our pilot market, we have developed partnerships with ITV, the largest retailer of advertising space and globally with LinkedIn, the B-2-B platform. It bodes well for the future, but we know there is much still to do.

[simon gordon] 06/7/2021 21:51

Had a good read of Maynard's piece after seeing SYS1 flagged on another thread as an idea.

That's a nice big bowl on the chart to get back to 1000p.

Looks ready to move from deep value to growth. Tightly held, buy backs returning, global spread, operational gearing with new test products and a revitalised top team. Looks a banger.

Cheers!!

[boonkoh] 01/7/2021 20:05

Maynard Payton, a private investor that I follow on his blog, has topped up on SYS1.Read more about this and also links to his in depth analysis on SYS1: hxxps://maynardpaton.com/2021/07/01/q2-2021-2-top-ups-and-5-lessons-from-owning-5-shares-for-10-years/#q2-share-trades-sys1

[longshanks] 21/4/2021 17:53

Green shoots appearing. Early days, but reassuring to see the balance sheet remains strong and that the new products are starting to gain traction.Only concern is the flurry of small buys yesterday, when this often goes for days without anything traded. Leaky ship?

[longshanks] 12/10/2020 17:18

These German investors at Investmentaktiengesellschaft für langfristige Investoren TGV have got the hots for SYS1: could become very interesting soon.

The literal translation is "Investment company for long-term investors",

[x54v] 06/7/2020 12:00

Starting to move up today with further buying and a continuation of the strong volume.

[longshanks] 03/7/2020 15:41

Separate Husband & Wife accounts is my guess

[x54v] 03/7/2020 14:50

The director must be fairly confident snapping up 108,000 Shares at 92.5.

£100k worth a decent chunk.

[x54v] 03/7/2020 14:48

Accumulation by an insti?

[x54v] 03/7/2020 14:47

Seems to be getting larger than average volume in recent sessions.

The director buying will have brought it onto people's radars as well.

[capercaillie] 03/7/2020 14:16

How is it possible to place 30,000 x £0.90 into as ISA when the allowance is £20k?

[wigwammer] 30/6/2020 07:21

"In June, the sales pipeline has shown early signs of recovering towards pre-pandemic levels, and our cost base was in line with our targets."

[itsnotmeitsy0u] 22/6/2020 22:18

any idea on when results are due?

[itsnotmeitsy0u] 16/6/2020 12:55

my thoughts too

[longshanks] 16/6/2020 11:19

Buying myself. Seems far too cheap at these levels, but we really need some data to see how the business is fairing. My view is that this will either recover in its own right or get bought out.

[itsnotmeitsy0u] 09/6/2020 10:10

well bought in but trade not showing - prob delayed...

[itsnotmeitsy0u] 29/5/2020 18:12

Tempted to buy at these lvlsEps now what on a ratio of 3.84%?KKLO/ps is 10

[topvest] 08/2/2020 18:15

I agree with you. It’s always been a good, albeit often over valued company. I’m not sure a share buy-back is a cautious use of funds given the investment required. Odd that the share price motored ahead of a profit warning! It’s been on my watchlist for a long time, but I have never really felt it was good value. I’m still sceptical. A lot of the value is tied-up with the founder.

[tabhair] 08/2/2020 01:41

My guess is that we will see a further exodus of shareholders once the dividend is cut. Personally, I cannot see how they can maintain the dividend, the buyback, the AdRatings investment in the face of falling profits.

The main reason I sold is that I am less confident on the business going forward than what I was when I bought 18 months ago. The economy has improved, stock markets are up, unemployment is lower - yet advertising has delivered a profit warning. My thought is that maybe this business is structurally impaired.

[longshanks] 06/2/2020 12:20

Can't blame anyone selling: "materially behind expectations" says it all.


It looks like this deal with ITV Commercial has been known by some insiders if not the public domain for a while - the video would have taken time to create - so I suspect the recent rise has been on speculation that AdRatings - "Test my Ad" - is gaining traction.


For shareholders there is still likely to be some time before it feeds through to the bottom line. Not sure they will cancel/cut the dividend - nor is it clear if any shares bought back will be cancelled - or simply held in treasury (for stock options).

[henryatkin] 06/2/2020 11:47

I sold as well but think the share buy back could offer some support & hope for long term holders.

[tabhair] 06/2/2020 11:23

Ditched my shares at the open on this one. Gross profit down, costs up, results to be "materially below the current market expectation". AdRatings may eventually prove to be a winner, but at this stage it's too speculative for me.

I think this may have further to fall as well. Management have already warned (on numerous occasions) that the dividend may be cut. The announcement of the share buy back will seal that. With profits dwindling and the cash balance not too high, the proposed £1.5m share buy back can only happen if the £1m dividend is cut.

[longshanks] 06/2/2020 10:27

How would you know if its applicable if you aren't woke, Pug?


Here is the announcement of the deal from ITV commercial - comes with a video featuring Ian Wright!