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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| System1 Group Plc | LSE:SYS1 | London | Ordinary Share | GB00B1GVQH21 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 610.00 | 600.00 | 620.00 | 610.00 | 605.00 | 610.00 | 1,869 | 08:00:28 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Coml Econ, Sociolog, Ed Resh | 30.02M | 2.03M | 0.1602 | 38.08 | 77.4M |
From Feb 2023 to Feb 2025
TIDMSYS1
RNS Number : 7901V
System1 Group PLC
06 December 2023
Press Release
6 December 2023
System1 Group PLC (AIM: SYS1)
("System1" or "the Group" or "the Company")
Unaudited interim results for the six months ended 30 September 2023
System1 Group the marketing decision-making platform www.system1group.com announces its unaudited interim results for the six months ended 30 September 2023 ("H1", "H1 FY24").
Hot Features
Premium
H1 H1
FY24 FY23 Change**
GBPm GBPm %
------- ------- =========
Management Basis*
Revenue 13.3 10.5 27%
======= ======= =========
Gross Profit 11.7 8.5 37%
Adjusted Operating Costs (9.8) (8.9) 10%
Adjusted Profit/(Loss)before Taxation 1.9 (0.4) NM
======= ======= =========
Statutory Basis
Revenue 13.3 10.5 27%
======= ======= =========
Gross Profit 11.7 8.5 37%
Operating Costs (11.1) (8.6) 27%
Other Operating Income 0.3 0.1 47%
======= ======= =========
Profit before Taxation 0.9 0.0 NM
Income Tax Expense (0.3) (0.2) 46%
Profit/(Loss) for the Period 0.6 (0.2) NM
======= ======= =========
Diluted Earnings per Share 4.9p (1.7p)
* Adjusted Operating Costs exclude impairment, other interest, share based payments, bonuses and commissions, severance costs, IP litigation costs, and other staff costs (sabbatical and holiday provisions). Adjusted Profit/(Loss) Before Taxation is Gross Profit less Adjusted Operating Costs and excludes Other Operating Income. Adjusted figures exclude items, positive and negative, that impede easy understanding of underlying performance. Details can be found in note 12 of the interim statements.
** Percentages and totals are based on numbers rounded to GBP'000s
H1 Highlights
-- Platform revenue (Predict Your and Improve Your) grew 44% on H1 FY23 to GBP10.9m and represented 82% of total revenue (H1 FY23: 73%). Total revenue increased by 27%.
-- Revenue growth in all regions including the Americas.
-- New partnerships launched with Pinterest, Finecast, JC Decaux and Teads, contributing to strong growth in ad testing revenue.
-- Increased focus on non-TV format ad testing with the launches of TYA Digital, TYA Audio. -- Innovation product launches during calendar 2024. -- 136 new platform clients in H1 (H1 FY23: 69) and improved retention of existing customers. -- Cost of sales down 17% due to platform and supply chain efficiencies. -- Gross profit margin increased to 87.8% (H1 FY23: 81.5%). -- Average H1 headcount down 6% to 143 (H1 FY23: 152).
-- Benefits of operational gearing and our scalable business model showing through: Adjusted profit before taxation increased to GBP1.9m (H1 FY23: GBP0.4m loss); GBP0.9m statutory profit before tax (H1 FY23: GBP0.0m).
-- GBP0.6m free cash flow in H1 (H1 FY23: outflow of GBP2.6m). Cash balance of GBP6.3m as at 30 September 2023 (31 March 2023: GBP5.7m).
-- Diluted and basic earnings per share 4.9p (H1 FY23 diluted and basic loss per share: 1.7p).
Current Trading & Outlook
-- Second half of the year has started well, and at this stage we expect H2 revenue to exceed H1.
-- Gross profit margin to date remains close to that achieved in H1, and well above recent historic levels.
-- Despite a difficult economic environment in some key markets, and challenging conditions for media owners and advertisers, we believe System1 can continue to grow profitably by gaining market share from large incumbents that we believe have less predictive products.
System1 CEO James Gregory commented:
"One year after our strategic review there are signs that the Company's fame-building activity and renewed focus on execution are working. We are helping even more of the world's largest advertisers make confident creative decisions and won over 100 new clients in H1, including a global top three advertiser, a leading global breakfast foods company, a leading European car manufacturer, a leading budget airline, a 'big four' UK supermarket, and a multinational consumer goods company. Platform revenue comprised 82% of total revenue in H1, ahead of our plan and well above last year's level."
Further information on the Company can be found at www.system1group.com.
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.
For further information, please contact:
System1 Group PLC Tel: +44 (0)20 7043 1000 James Gregory, CEO Chris Willford, Chief Financial Officer Canaccord Genuity Limited Tel: +44 (0)20 7523 8000 Simon Bridges / Andrew Potts/ Harry Rees
Interim Statement
Financial Performance
KPIs H1 FY24 H1 FY23 Platform Revenue as a % total Revenue 82 73 Platform Revenue growth % 44 33 Gross Profit % Revenue 87.8 81.5 Adjusted EBITDA GBPm (1) 1.7 0.8 Adjusted EBITDA % Revenue 13 8 "Rule of 40" (2) 57 42 Free cash flow(3) 0.6 (2.7) Net cash GBPm 6.3 5.7
(1) Statutory profit before taxation + share-based payments + interest, depreciation and amortisation
(2) Platform Revenue growth % + Adjusted Group EBITDA % Group Revenue
(3) Cash flow after interest and before debt raising/reduction, buybacks/dividends.
Total revenue increased by 27% and Platform revenue (Predict Your and Improve Your) grew 44% on H1 FY23 to GBP10.9m and represented 82% of total revenue (H1 FY23: 73%). Revenue grew in all regions including the Americas. In the US platform revenue rose by 32% and total revenue by 22%.
New "fame" partnerships were launched with Pinterest, Finecast, JC Decaux and Teads, contributing to strong growth in ad testing revenue, which was 48% higher than in H1 FY23.
We launched new non-TV ad testing formats in H1 including TYA Digital and TYA Audio and are planning Innovation product launches during calendar 2024.
Our fame-building, products and partnerships helped the Company to win 136 new platform clients in H1 (H1 FY23: 69). Furthermore, we retained 128 existing H1 platform clients in H1 compared with 99 in H1 FY23.
Gross profit margin increased from 81.5% in H1 FY23 to 87.8% due to platform and supply chain efficiencies, price increases and favourable product and geographic mix versus the comparable period.
Adjusted Operating Costs increased by 10% versus H1 last year due to increased marketing expenditure, costs relating to enhanced ongoing sector and geographic coverage of the TYA Premium database, and lower net capitalisation of IT development costs.
Statutory basis costs increased by GBP2.4m on H1 FY23, reflecting, in addition to the Adjusted Operating Costs, performance-related pay compared to a very low H1 FY23 base, adverse currency effects, and a GBP0.1m provision against rent deposits made by System1 in respect of WeWork office leases.
Overall average headcount decreased by 6% to 143 FTE with increases in Sales & Marketing more than offset by reductions in Operations and IT.
Intellectual Property Litigation
On 30 June 2023 the Company announced that a settlement had been reached with System1 Inc regarding the use of the "System1" trademark. The parties have signed a global agreement which governs the co-existence of their respective use of the "System1" mark in connection with their operations. As part of this agreement, the Company is receiving a fixed undisclosed payment payable in instalments. The first instalment due under this agreement was received in August 2023 and has been recognised in other operating income. The parties have agreed to keep further detail of their agreement confidential.
Tax
The Group has recognised a tax charge of GBP0.3m in the six months to 30 September 2023 (H1 FY23: tax charge of GBP0.2m). The H1 FY24 figure includes a receipt of GBP0.2m in respect of R&D tax credit claims in the UK. The tax charge arises from trading profits in non-UK jurisdictions which cannot be offset against trading losses elsewhere.
Earnings Per Share
Diluted and Basic Earnings per Share improved from a loss of 1.7p to an H1 FY24 earnings per share of 4.9p, in line with the increase in profits for H1 FY24.
Cash
The Group ended the period with cash balances of GBP6.3m, and no borrowings (FY23: net cash of GBP5.7m). Free cash flow after property lease costs and interest income amounted to an inflow of GBP0.6m in the first half (H1: FY23: outflow of GBP2.7m).
Balance Sheet
Total equity increased to GBP9.3m (31 March 2023: GBP8.6m), arising from the year-to-date post-tax profit of GBP0.6m and a small GBP0.1m gain on foreign currency reserves. Intangible assets have increased by GBP0.3m as a result of the capitalisation of GBP0.5m of certain platform development costs, offset by amortisation charges on completed projects.
Current Trading & Outlook
The second half of the year has started well, and at this stage we expect H2 revenue to exceed H1. The gross profit margin in the third quarter to date remains close to that achieved in H1, and well above recent historic levels. Despite a difficult economic environment in some key markets, and challenging conditions for media owners and advertisers, we believe System1 can continue to grow profitably by gaining market share from large incumbents that we believe have less predictive products.
James Gregory Chris Willford Chief Executive Officer Chief Financial Officer
Condensed Consolidated Income Statement
for the 6 months ended 30 September 2023
Note Sep-23 Sep-22
GBP'000 GBP'000
--------- --------------------
Revenue 3 13,305 10,496
Cost of sales (1,620) (1,946)
--------- --------------------
Gross profit 11,685 8,550
Administrative expenses (11,070) (8,696)
Other operating income 330 224
Operating profit 945 78
Finance expense (20) (84)
Profit/(Loss) before taxation 925 (6)
Income tax expense (298) (204)
Profit/(Loss) for the period 627 (210)
========= ====================
Attributable to the equity holders of the Company 627 (210)
--------- --------------------
Earnings per share attributable to equity holders of the Company
Basic earnings/(loss) per share 4 4.9p (1.7p)
Diluted earnings/(loss) per share 4 4.9p (1.7p)
CONDENSED Consolidated Statement of Comprehensive Income
for the 6 months ended 30 September 2023
Sep-23 Sep-22
GBP'000 GBP'000
======== ===============
Profit/(loss) for the period 627 (210)
======== ===============
Other comprehensive income:
Items that may be subsequently reclassified to profit/(loss)
Currency translation differences on translating foreign operations 57 447
-------- ---------------
Other comprehensive income for the period, net of tax 57 447
Total comprehensive income for the period attributable to equity holders of the Company 684 237
======== ===============
CONDENSED Consolidated Balance Sheet
as at 30 September 2023
Registered no. 05940040
Note Sep-23 Mar-23
GBP'000 GBP'000
-------- ---------------
ASSETS
Non-current assets
Property, plant, and equipment 7 735 1,162
Intangible assets 8 1,650 1,396
Deferred tax asset 132 203
-------- ---------------
2,517 2,761
Current assets
Contract assets 170 102
Trade and other receivables 6,563 6,344
Income taxes receivable 74 55
Cash and cash equivalents 6,281 5,719
-------- ---------------
13,088 12,220
Total assets 15,605 14,981
======== ===============
EQUITY
Attributable to equity holders of the Company
Share capital 10 132 132
Share premium account 1,601 1,601
Merger reserve 477 477
Foreign currency translation reserve 480 423
Retained earnings 6,641 5,974
-------- ---------------
Total equity 9,331 8,607
-------- ---------------
LIABILITIES
Non-current liabilities
Provisions 329 353
Lease liabilities 9 - 362
-------- ---------------
329 715
Current liabilities
Provisions 96 101
Lease liabilities 9 922 1,094
Contract liabilities 796 764
Trade and other payables 4,131 3,700
-------- ---------------
5,945 5,659
Total liabilities 6,274 6,374
Total equity and liabilities 15,605 14,981
======== ===============
CONDENSED Consolidated Statement of Cash Flows
for the 6 months ended 30 September 2023
Note Sep-23 Sep-22
GBP'000 GBP'000
-------------- --------------
Net cash generated from/(used in) operations 11 1,900 (1,297)
Tax paid (252) (187)
-------------- --------------
Net cash generated from/(used in) operating activities 1,648 (1,484)
Cash flows from investing activities
Purchases of property, plant, and equipment 7 (38) (3)
Purchase of intangible assets 8 (500) (654)
-------------- --------------
Net cash used by investing activities (538) (657)
Net cash flow before financing activities 1,110 (2,141)
Cash flows from financing activities
Interest paid (20) (84)
Property lease liability payments (533) (433)
Purchase of own shares - (135)
-------------- --------------
Net cash used by financing activities (553) (652)
Net increase/(decrease) in cash and cash equivalents 557 (2,793)
Cash and cash equivalents at beginning of period 5,719 11,174
Exchange gain on cash and cash equivalents 5 683
Cash and cash equivalents at end of period 6,281 9,064
============== ==============
Sep-23 Sep-22
GBP'000 GBP'000
-------------- --------------
Net cash flow before financing activities 1,110 (2,141)
Net cash flow for property leases (553) (468)
Operating cash flow 557 (2,609)
-------------- --------------
Consolidated Statement of Cash Flows (continued)
for the 6 months ended 30 September 2023
Consolidated Movements in Net Cash/(Debt)
Cash and cash equivalents Borrowings Lease liabilities Total
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------------- ------------------ ------------
At 1 April 2022 11,174 (2,500) (2,508) 6,166
Cash flows (2,793) - 478 (2,315)
Non-cash charges
Interest on lease liabilities - - (45) (45)
Exchange and other non-cash
movements 683 - - 683
At 30 September 2022 9,064 (2,500) (2,075) 4,489
========================== ============== ================== ============
Consolidated Movements in Net Cash/(Debt)
Cash and cash equivalents Borrowings Lease liabilities Total
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------------- ------------------ ------------
At 1 April 2023 5,719 - (1,456) 4,263
Cash flows 557 - 553 1,110
Non-cash charges
Interest on lease liabilities - - (20) (20)
Exchange and other non-cash
movements 5 - 1 6
At 30 September 2023 6,281 - (922) 5,359
========================== ============== ================== ============
Consolidated Statement of Changes in Equity
for the 6 months ended 30 September 2023
Foreign
currency
Share premium translation Retained
Share capital account Merger reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- --------------- --------------- -------------- --------------- --------------
At 1 April 2022 132 1,601 477 196 5,857 8,263
Loss for the
period - - - - (210) (210)
Other
comprehensive
income:
- currency
translation
differences - - - 447 - 447
Total
comprehensive
income - - - 447 (210) 237
Transactions
with owners:
Employee share
options:
- value of
employee
services - - - - 182 182
Purchase of own
shares (135) (135)
At 30 September
2022 132 1,601 477 643 5,694 8,547
============== =============== =============== ============== =============== ==============
At 1 April 2022 132 1,601 477 196 5,857 8,263
Profit for the
period - - - - 404 404
Other
comprehensive
income:
- currency
translation
differences - - - 227 - 227
Total
comprehensive
income - - - 227 404 631
Transactions
with owners:
Employee share
options:
- value of
employee
services - - - - (153) (153)
Purchase of own
shares (134) (134)
At 31 March 2023 132 1,601 477 423 5,974 8,607
============== =============== =============== ============== =============== ==============
At 1 April 2023 132 1,601 477 423 5,974 8,607
Profit for the
period - - - - 627 627
Other
comprehensive
income:
- currency
translation
differences - - - 57 - 57
Total
comprehensive
income - - - 57 627 684
Transactions
with owners:
Employee share
options:
- value of
employee
services - - - - 40 40
At 30 September
2023 132 1,601 477 480 6,641 9,331
============== =============== =============== ============== =============== ==============
Notes to the Condensed Consolidated Financial Statements
for the 6 months ended 30 September 2023
System1 Group PLC (the "Company") was incorporated on 19 September 2006 in the United Kingdom. The Company's principal operating subsidiary, System1 Research Limited, was at that time already established, having been incorporated on 29 December 1999. The address of the Company's registered office is 4 More London Riverside, London, UK SE1 2AU. The Company's shares are listed on the AIM Market of the London Stock Exchange ("AIM").
The Company and its subsidiaries (together the "Group") provide predictive marketing data and market research consultancy.
The Board of Directors approved these interim financial statements for the six months ended 30 September 2023 for issuance on 6 December 2023.
The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006 and is unaudited. The Group's latest statutory financial statements were for the year ended 31 March 2023 and these have been approved by the Board of Directors and filed with the Registrar of Companies. These accounts, which contained an unqualified audit report under Section 495, did not include a reference to any matters to which the auditor drew attention by way of emphasis of matter and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
1. Basis of Preparation
This condensed consolidated interim financial information has been prepared in accordance with UK adopted IAS 34 Interim Financial Reporting and on the going concern basis. The Group is mindful of the current economic backdrop in Europe, and the Board continues to review the performance of the Group monthly, and senior management has a weekly assessment of sales revenue and gross profit. The Group also prepares and reviews cash flow forecasts and is confident that the going concern assessment remains appropriate. The results presented in this report are unaudited and they have been prepared in accordance with the recognition and measurement principles of UK-adopted International Accounting Standards that are expected to be applicable to the financial statements for the year ending 31 March 2024 and on the basis of the accounting policies to be used in those financial statements. The condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements, being the statutory financial statements for System1 Group plc, as at 31 March 2023, which have been prepared in accordance with UK adopted International Accounting Standards with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.
The preparation of financial statements in accordance with UK-adopted International Accounting Standards ("UK-adopted IFRS") requires the use of certain critical accounting estimates.
2. Principal accounting policies
The principal accounting policies adopted are consistent with those of the financial statements for the year ended 31 March 2023.
3. Segment Information
The financial performance of the Group's geographic operating units ("Reportable Segments") is set out below.
Sep-23 Sep-22
------------ ------------
Revenue Revenue
GBP'000 GBP'000
------------ ------------
By location of customer
Americas 4,748 4,050
United Kingdom 5,610 3,844
Rest of Europe 2,182 1,864
APAC 765 738
------------ ------------
13,305 10,496
*Segmental revenue is revenue generated from external customers and so excludes intercompany revenue and is attributable to geographical areas based upon the location in which the service is delivered.
Consolidated balance sheet information is regularly provided to the Executive Directors while segment balance sheet information is not. Accordingly, the Company does not disclose segment balance sheet information here.
Sep-23 Sep-22
------------ --------------
Revenue
Revenue *As restated
GBP'000 GBP'000
------------ --------------
By product variant
Predict Your (data) 9,036 6,175
Improve Your (data-led consultancy) 1,902 1,447
------------ --------------
Standard (platform revenue) 10,938 7,622
Other consultancy (non-platform) 2,367 2,874
------------ --------------
13,305 10,496
By product group
Communications (Ad Testing) 10,377 7,022
Brand (Brand Tracking) 1,420 1,865
Innovation 1,508 1,609
------------ --------------
13,305 10,496
*Following the expansion of the Group's data and platform-led offering, revenue segments in respect of "By product variant" were revised during the second half of the year ended 31 March 2023 to reflect the new structure of the Group's internal reporting. The comparatives have been re-stated accordingly.
4. Earnings Per Share
Sep-23 Sep-22
----------- -----------
Profit/(Loss) attributable to equity holders of the Company, in GBP'000 627 (210)
Weighted average number of Ordinary Shares in issue 12,678,929 12,717,762
Basic earnings/(loss) per share 4.9p (1.7p)
Profit/(Loss) attributable to equity holders of the Company, in GBP'000 627 (210)
Weighted average number of Ordinary Shares in issue 12,678,929 12,717,762
Share options* 12,823 13,000
----------- -----------
Weighted average number of Ordinary Shares for diluted earnings per share 12,691,752 12,730,762
Diluted earnings/(loss) per share 4.9p (1.7p)
* The impact of share options is anti-dilutive in the period ended 30 September 2022 due to the loss.
5. Headcount
The average number of staff employed by the Group during the period was as follows:
Sep-23 Sep-22
No. No.
------------ ------------
Sales and marketing 50 47
Operations 39 45
IT 32 38
Administration 22 22
------------ ------------
143 152
6. Dividends
The Company did not pay dividends in the six months ended 30 September 2023 and 30 September 2022. The Company does not propose the payment of an interim dividend.
No dividends were paid to the Company's directors.
7. Property, Plant, and Equipment
Furniture and
Right-of-use assets fixtures Computer hardware Total
GBP'000 GBP'000 GBP'000 GBP'000
-------------------- -------------------- ------------------ ----------------
At 1 April 2022
Cost 3,555 33 192 3,780
Accumulated depreciation (1,584) (29) (113) (1,726)
-------------------- -------------------- ------------------ ----------------
Net book value 1,971 4 79 2,054
Net book value, at 1 April 2022 1,971 4 79 2,054
Additions - - - 30 30
Foreign exchange - 49 - 2 51
Depreciation charge for the year (894) (3) (76) (973)
-------------------- -------------------- ------------------ ----------------
Net book value, at 31 March 2023 1,126 1 35 1,162
At 31 March 2023
Cost 2,050 11 206 2,267
Accumulated depreciation (924) (10) (171) (1,105)
-------------------- -------------------- ------------------ ----------------
Net book value 1,126 1 35 1,162
==================== ==================== ================== ================
At 1 April 2023
Cost 2,050 11 206 2,267
Accumulated depreciation (924) (10) (171) (1,105)
-------------------- -------------------- ------------------ ----------------
Net book value 1,126 1 35 1,162
Net book value, at 1 April 2023 1,126 1 35 1,162
Additions - - 38 38
Foreign exchange 1 - - 1
Depreciation charge for the year (440) - (26) (466)
-------------------- -------------------- ------------------ ----------------
Net book value, at 30 September
2023 687 1 47 735
At 30 September
2023
Cost 2,061 11 244 2,316
Accumulated depreciation (1,374) (10) (197) (1,581)
Net book value 687 1 47 735
==================== ==================== ================== ================
No impairment charges or reversals have been recorded in the six months ended 30 September 2023, and there have been no substantive changes to leasehold arrangements.
8. Intangible assets
Development costs Software licences Total
GBP'000 GBP'000 GBP'000
------------------ ------------------ ----------------
At 1 April 2022
Cost - 525 525
Accumulated depreciation - (143) (143)
------------------ ------------------ ----------------
Net book value - 382 382
Net book value, at 1 April 2022 - 382 382
Additions 1,225 - 1,225
Depreciation charge for the year (101) (110) (211)
------------------ ------------------ ----------------
Net book value, at 31 March 2023 1,124 272 1,396
At 31 March 2023
Cost 1,225 525 1,750
Accumulated depreciation (101) (253) (354)
------------------ ------------------ ----------------
Net book value 1,124 272 1,396
================== ================== ================
At 1 April 2023
Cost 1,225 525 1,750
Accumulated depreciation (101) (253) (354)
------------------ ------------------ ----------------
Net book value 1,124 272 1,396
Net book value, at 1 April 2023 1,124 272 1,396
Additions 500 - 500
Depreciation charge for the year (194) (52) (246)
------------------ ------------------ ----------------
Net book value, at 30 September 2023 1,430 220 1,650
At 30 September 2023
Cost 1,725 525 2,250
Accumulated depreciation (295) (305) (600)
Net book value 1,430 220 1,650
================== ================== ================
In the 12 months to 31 March 2023, the Company capitalised GBP1,225k of costs related to the development of the "Test Your" platform (carrying value GBP865k at 31 March 2023), which completed during the year ended 31 March 2023, and the Supply Chain Automation platform (carrying value GBP259k at 31 March 2023), which is due for completion in the year ended 31 March 2024. A further GBP500k has been capitalised in respect of the Supply Chain Automation project in the six months ended 30 September 2023.
Development costs in respect of completed projects are tested for impairment where impairment indicators exist. Development costs in respect of ongoing projects are tested for impairment at each reporting date. The carrying value of the assets in each case are assigned to their respective cash generating units for the purposes of assessing future cashflows. The principal assumptions used in the forecasts were the timing and amount of future revenues and cost savings, which were derived from the latest forecasts approved by the Board. Following the assessment, the Board have determined that no impairment of assets is required at 30 September 2023. Capitalised platform development costs are being amortised over a 3-year period.
9. Borrowings
The analysis of the maturity of lease liabilities is as follows:
Sep-23 Mar-23
GBP'000 GBP'000
-------------- -------------
Within one year 934 1,031
Later than 1 but no later than 5 years - 457
More than 5 years - -
-------------- -------------
Minimum lease payments 934 1,488
Future finance charges (12) (32)
-------------- -------------
Recognised as a liability 922 1,456
The present value of finance lease liabilities is as follows:
Sep-23 Mar-23
GBP'000 GBP'000
-------------- -------------
Within one year 922 1,094
Later than 1 but no later than 5 years - 362
More than 5 years - -
-------------- -------------
922 1,456
On 22 February 2023, the Company entered into an Overdraft Facility with HSBC. The facility of up to a maximum of GBP1,500,000, is secured over the Company's trade receivables, and incurs interest at 3% above the Bank of England base rate on drawn balances. The facility has no fixed end date and can be cancelled by either party at any time. During the period ended 30 September 2023, the Company has not drawn any amounts under the facility, and no amounts have been drawn to the date of the signing of these financial statements.
10. Share Capital
The share capital of System1 Group PLC consists only of fully paid Ordinary Shares ("Shares") with a par value of one penny each. All Shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the Annual General Meeting.
Sep-23 Mar-23
---------------------------------------------- -----------------------------------------
No. GBP'000 No. GBP'000
--------------------- ----------------------- ---------------- -----------------------
Allotted, called up, and
fully paid ordinary
shares 13,226,773 132 13,226,773 132
At 1 April and at 30
September
Sep-23 Mar-23
---------------------------------------------- -----------------------------------------
Weighted average Weighted average
exercise price per exercise price per
Treasury shares share Treasury shares share
No. Pence No. Pence
--------------------- ----------------------- ---------------- -----------------------
Shares held by Treasury
At 1 April 547,844 487,151
Purchase of treasury
shares - 60,693
Transfer of shares to -
satisfy options exercise - - -
--------------------- ----------------
At 30 September 547,844 547,844
11. Net Cash Generated from Operations
Sep-23 Sep-22
GBP'000 GBP'000
-------------- --------------
Profit/(loss) before taxation 925 (6)
Depreciation of property, plant, and equipment 466 496
Amortisation and impairment of intangible assets 246 58
Interest paid 20 84
Share-based payment expense 40 182
(Increase)/decrease in contract assets (69) 47
Increase in trade and other receivables (219) (1,001)
Increase/(decrease) in trade and other payables 432 (819)
Increase in deferred income 32 51
Decrease in provisions (29) (65)
Exchange differences on operating items 56 (324)
Net cash generated from/(used in) operations 1,900 (1,297)
============== ==============
12. Reconciliation between Operating Costs and Adjusted Operating Costs:
Sep-23 Sep-22
GBP'000 GBP'000
-------------------- -----------------
Administrative expenses 11,070 8,696
Finance expense 20 84
-------------------- -----------------
Total operating costs 11,090 8,780
==================== =================
Less: Adjusting items
Compensation for loss of
office 35 -
Bonus and commissions expense 1,124 64
Share-based payment expense* 52 189
Other interest expense - 48
Other staff costs (22) 5
Foreign exchange loss/(gain) 74 (490)
Trademark litigation 20 9
-------------------- -----------------
1,283 (175)
Adjusted operating costs 9,807 8,955
==================== =================
*Inclusive of social security accrued in respect of share options
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END
IR NKPBBKBDBABK
(END) Dow Jones Newswires
December 06, 2023 02:00 ET (07:00 GMT)
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