System1 Group PLC Trading Update (3486O)
August 18 2017 - 1:00AM
UK Regulatory
TIDMSYS1
RNS Number : 3486O
System1 Group PLC
18 August 2017
Press Release 18 August 2017
System1 Group PLC (AIM: SYS1)
formerly BrainJuicer Group PLC
("System1", or "the Company", or "the Group")
Trading Update
At the Annual General Meeting of the Company this morning, Ken
Ford, Chairman, will make the following comments on trading
relating to the current financial year ending 31 March 2018:
"The slower than expected start to our financial year which we
noted at the time of the announcement of our 2016/17 results on 15
June 2017 has continued since then, and we now expect H1 Gross
Profit (our main top line performance indicator) to be 6-11% lower
than prior year. This is mainly due to non-recurrence of large
one-off Innovation projects as a result of some significant client
spending deferrals and a more competitive market, although there
have been some more encouraging signs recently. Meanwhile we are
continuing to refine our Innovation product offering (Predictive
Markets), with a relaunch planned in Q3 of our financial year.
Notwithstanding this slow start and our lack of revenue visibility,
we expect Gross Profit to move back to growth in H2.
We expect that H1 2017/18 costs will be some 15% higher than
last year. This reflects continued investment in senior hires in
the US, which we referred to in our full year results announcement,
to support future growth in both our Research and new Advertising
Agency businesses. The H1 cost increase also includes one-off
severance costs which will result in savings of around GBP0.5m per
annum in H2 and beyond. Over the financial year as a whole, costs
are currently expected to grow by around 10%.
As of now, we anticipate a little over break-even in Profit
Before Tax in H1 (prior year: GBP2.8m) and a decline in full year
Profit Before Tax of approximately 10-15% from the GBP6.3m achieved
last year.
We will provide an update in early October, and a more detailed
report with our H1 results announcement on 31 October 2017.
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: +44 (0)20
7043 1000
John Kearon, Chief Executive
Officer
James Geddes, Chief Financial
Officer
Canaccord Genuity Limited Tel: +44 (0)20
7523 8000
Simon Bridges / Emma Gabriel
This information is provided by RNS
The company news service from the London Stock Exchange
END
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