System1 Group PLC (AIM: SYS1)

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

Trading Update for the Annual General Meeting

System1, the marketing decision-making platform www.system1group.com is today providing a Trading Update to coincide with the Company's AGM.

With three trading days left in FY24 H1, it is pleasing to report Platform revenue is approximately 40% above the comparable period in FY23, albeit 2022 was affected by customers' budgetary response to the Ukraine invasion and associated economic shocks.

Total revenue for FY24 H1 is expected to be approximately 25% higher than the comparable period in FY23. Second quarter revenue is set to surpass the recent FY23 Q4 peak and deliver double-digit growth on Q1 FY24.

Overall, FY24 H1 Platform revenue is expected to show low double-digit growth on the second half of FY23, and total revenue is projected to rise modestly despite a reduction in bespoke consultancy revenues.

The improved gross profit margins achieved in H2 FY23 have been sustained in the current year to date, providing a strong base for a profitable year.

OUTLOOK

The Company expects to release its Q2 revenue numbers on 24 October 2023 and publish interim results on 6 December 2023.

The Board is encouraged by trading in FY24 H1 and believes that the Group is well set to outperform the current consensus¹ numbers for Revenue and Adjusted Profit Before Taxation² for the current financial year.

Chairman Rupert Howell commented: "The sustained improvement in performance over the past 9 months reflects the clarity on strategy achieved in last year's review of strategic options and the executive team's focus on delivering the plan." 

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.

¹ Current consensus for FY24: Revenue £25.7m, Adjusted Profit Before Taxation £0.9m

² Statutory Profit Before Taxation excluding share-based payment charges/credits

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