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System1 Group PLC (SYS1)

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Tuesday 22 February, 2022

System1 Group PLC

Trading Update

RNS Number : 4000C
System1 Group PLC
22 February 2022
 

 

 

 

                        22 February 2022

 

 

System1 Group PLC (AIM: SYS1)

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

 

Trading Update

 

System1 Group, the marketing decision-making platform, issues the following update on trading for the year ending 31 March 2022.

 

Despite substantial progress in the development of new revenue streams from automated prediction products (Data) since their introduction in 2020, and satisfactory performance in the first 9 months of the current financial year, total revenues in the final quarter ending 31 March 2022 are now expected to be over £1m short of management's previous expectations. This is due to a sudden and unanticipated reduction in the forecast for bespoke consultancy project sales in the US.

 

Management is taking rapid action to address the consultancy sales performance in the US. As a consequence of the lower consultancy revenues, we now expect profit before tax for the final quarter and the year as a whole to be about £1m below the current market expectations.

 

The Company is now well into its transition from a marketing agency to a decision-making platform. Automated Data products in the US region, and overall, continue to perform well, attracting over 200 new customers since launching in 2020. In the nine months to 31 December 2021, 39% of revenue came from Data and 60% of that revenue originated from those new customers.

 

Cash net of borrowings remained strong at the end of January at £9m, compared with £6.5m at end-March 2021.

 

 

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

 

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this 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, Founder and Chief Executive Officer

 

 

Chris Willford, Chief Financial Officer

 

 

Canaccord Genuity Limited

Tel: +44 (0)20 7523 8000

Simon Bridges / Andrew Potts

 

 

 

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