System1 Group PLC Trading Update (2297L)

TIDMSYS1

RNS Number : 2297L

System1 Group PLC

18 April 2018

 
 Press Release   18 April 2018 
 

System1 Group PLC (AIM: SYS1)

formerly BrainJuicer Group PLC

("System1", or "the Company", or "the Group")

Trading update for the twelve months to 31 March 2018

System1, the marketing services group, today releases the following trading update for the twelve months ended 31 March 2018 ("2017/18"). The Company changed its year-end last year and its previous audited financial statements relate to the 15 months ended 31 March 2017. To ensure like-for-like comparisons, percentage changes shown below have been calculated using, as the base, unaudited results for the twelve months ended 31 March 2017 ("2016/17", and where mentioned "last year" refers to 2016/17).

As previously announced, trading during 2017/18 has been disappointing. Gross Profit (the Company's main top-line performance indicator) declined by some 18% (17% in constant currency) to GBP22.2m. The Company has responded with new product offerings and reductions in its cost base. After 8% Overhead Cost growth in H1 (vs the comparable prior-year period), Overhead Costs over the year as a whole have declined by approximately 2%.

This decline in Overhead Costs is due in part to a decline in Share based Payments (following the sharp fall in the Company's share price over the last twelve months), from GBP0.7m last year to approximately GBP0.1m this year, and in part to a reduction in employee bonuses from GBP2.3m last year to less than GBP0.1m this year. It also reflects a reduction in headcount over H2.

As a result, the Company now expects Profit before Tax to be in the range of approximately GBP1.6m to GBP2.0m for the year.

The Company returned GBP4.2m to shareholders by way of dividends during 2017/18, and yet still had a healthy net cash balance of GBP5.7m at 31 March 2018 (31 March 2017: GBP8.3m).

The Company will announce its audited financial results on 1 June 2018.

The Company can be found at www.system1group.com.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information, please contact:

 
 System1 Group PLC                       Tel: [phone] 
                                                        1000 
 John Kearon, Chief Executive Officer 
 James Geddes, Chief Financial Officer 
 Canaccord Genuity Limited                 Tel: [phone] 
                                                          8000 
 Simon Bridges / Emma Gabriel 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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April 18, 2018 02:00 ET (06:00 GMT)