15th Oct 2018 11:07
LONDON (Alliance News) - System1 Group PLC said Monday it expects interim gross profit, the company's top-line performance indicator, to stabilize.
The market research company, however, warned that gross profit for the six months to September-end to be 5% lower than the comparable period last year.
System1's operating costs in the first half were "tightly controlled" and are expected to be 14% lower than in the first six months the year prior, excluding its investment in Ad Ratings subscription service.
The company's underlying first half profits, before Ad Ratings and share based payments, is expected to be about GBP1.9 million, up 73% on the GBP1.1 million reported last year.
The AIM-listed company said "further material investment" will take place in the remainder of the current financial year as it heads towards a phased launch of its new AD Ratings service.
In the first half, System1 invested GBP1.7 million in the new service.
The company believes its financial position remains "strong" despite the "heavy" investment in Ad Ratings and the payment of financial year 2018's final dividend during the period.
At the end of the half, System1 had a cash balance of GBP3.6 million with no debt.
Shares in System1 were up 1.2% Monday at 200.40 pence each.
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System1 Group