System1 Group PLC Trading Update (2297L)
18 April 2018 - 4:00PM
UK Regulatory
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: +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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