Trading Update

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 £22.2m.  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 £0.7m last year to approximately £0.1m this year, and in part to a reduction in employee bonuses from £2.3m last year to less than £0.1m 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 £1.6m to £2.0m for the year.

The Company returned £4.2m to shareholders by way of dividends during 2017/18, and yet still had a healthy net cash balance of £5.7m at 31 March 2018 (31 March 2017: £8.3m).

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

 

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