Trading Update

RNS Number : 6509C

System1 Group PLC

19 April 2017

 

Press Release

19 April 2017

System1 Group PLC (AIM: SYS1)

formerly BrainJuicer Group PLC

("System1", or "the Company")

Trading Update

System1 (formerly BrainJuicer) today releases the following update on trading for the 12 month period ended 31st March 2017.

As previously announced, the Company has changed its year-end from 31 December to 31 March, and this is the first financial reporting period adopting the new year-end date.  The Company announced unaudited financial results for the 12 month period ended 31 December 2016 on 9 February.  It will be announcing unaudited financial results for the 12 month period ended 31 March 2017, and audited financial results for the 15 month period ended 31 March 2017, on 15 June.

The Company has continued to trade strongly since December 2016.  For the 12 month period ended 31 March 2017, vs the 12 months to 31 March 2016, revenue grew by some 27% to approximately £33m and gross profit (our main top line performance indicator) has grown by some 29% to approximately £27m.  Excluding the impact of exchange rate movements the increase in revenue was approximately 13% and gross profit was some 15%.  These growth rates are similar to those for the 12 month period ended 31 December 2016, as are the product mix and geographic split .

The Company incurred the costs related to its name change (to System1) and the associated significant re-branding exercise, during the period since 31 December 2016.  Nevertheless pre-tax profit for the 12 month period ended 31 March 2017 is expected to be around £6.2m, representing 25% growth over the pre-tax profit for the 12 month period ended 31 March 2016, and in line with expectations.

The Company continues to be highly cash generative.  Since 31 December 2016, it has paid annual employee bonus payments relating to the 12 months ended 31 December 2016 (totalling £2.4m) and yet had a cash balance of £8.3m as at 31 March 2017 (up from £7.8m as at 31 December 2016).  It has no debt.

The Company launched its new name and re-brand on 1^st April 2017 and this marks the start of a new chapter.  It has built its business by applying Behavioural Science to predicting profitable marketing.  Behavioural Science is based on the conviction that people use instinct, intuition and emotion to make most decisions.  This is known as "System 1" thinking.  Having adopted the System 1 approach to market research and launched the System 1 advertising agency ("System1 Agency"), we are now adopting the System1 name across the business.  The Company will have System1 Agency to produce profitable marketing and System1 Research to predict it and, we believe, will be well positioned to help clients move towards what we call "5-star marketing" and the growth that comes with it.

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 considered to be in the public domain.

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

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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