14th Jul 2021 11:47
(Alliance News) - System1 Group PLC on Wednesday reported an annual profit rise despite a fall in revenue in its recent financial year.
Shares in System1 were down 4.2% at 206.00 pence each in London on Wednesday morning.
London-based System1 is a marketing and brand consultancy.
It posted revenue for the financial year that ended March 31 of GBP22.8 million, a 11% fall from GBP25.5 million the previous year.
Pretax profit for the year multiplied to GBP2.1 million from GBP296,000 as operating cost reductions more than offset the decline in revenue.
"As System1 returns to its pre-pandemic level of revenue, we do so in a position of relative strength. Cash balances and cash flow are healthy, and we will continue to invest in our products, data assets and talent. We plan to remain profitable and to continue to generate cash in the 2021/22 financial year, as we prioritise scaling our automated prediction products," said Founder and Executive President John Kearon.
System1 will look to reinstate the share buyback programme that was suspended in 2020 due to uncertainty over the potential impact of the Covid pandemic on its business. It will provide more information on the proposed buyback later in the year.
Going forwardn System1 said it plans to remain profitable. However, it is targeting revenue growth to be at least matched by the rate of cost growth, catching up pandemic-related cost reductions in the recent financial year.
By Amrit Sahota; [email protected]
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