18th Apr 2018 12:05
LONDON (Alliance News) - System1 Group PLC on Wednesday said it expects to report "disappointing" full-year results, with profit falling sharply, though not as much as previously expected.
The marketing services group said gross profit declined 18% to GBP22.2 million for its year to the end of March. On a constant currency basis, gross profit dropped by 17%. In comparison, System1's gross profit was GBP27.0 million the year before.
System1 anticipates pretax profit in the range of GBP1.6 million and GBP2.0 million, representing a large fall versus GBP6.3 million the prior year. In January, however, it said it expected pretax profit to be "a little over break-even".
The company said over the year it reduced overhead costs by around 2% from GBP20.7 million.
System1 share based payments declined significantly to GBP100,000 from GBP800,000 the year earlier, after the sharp fall in the company's share price over the year.
As a part of a costs reduction programme, the group cut expenses related to employees' bonuses. In its financial year 2018 it spent less than GBP100,000 for bonuses compared with GBP2.2 million the year before.
The company added it returned GBP4.2 million to shareholders in dividends and had GBP5.7 million in cash as at the end of March. The year earlier, the group paid dividends of GBP2.1 million and reported cash balance at GBP8.3 million.
The stock was trading 6.7% higher at 320.00 pence per share on Wednesday, having been as high as 1,025.00p May last year.
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System1 Group