9th Jul 2025 13:13
(Alliance News) - System1 Group PLC on Wednesday reported higher revenue and profit in financial 2025, but weaker performance in the first quarter of the new year.
The London-based marketing firm posted a 25% jump in revenue for the year ended March 31, reaching GBP37.4 million from GBP24.8 million the year prior.
Pretax profit rose to GBP4.5 million from GBP2.0 million. Hailing its "outstanding" earnings, System1 declared a special dividend of 5.5 pence per share. The total dividend for financial 2025 is 5.5p, up 10% from 2024.
Net cash at March 31 was GBP12.9 million, compared with GBP4.0 million on-year.
However, trading has slowed in the first-quarter of financial 2026. In the three months ended June 30, the company estimated revenue fell 7% to GBP8.8 million from GBP9.5 million the previous year.
System1 cited more caution among its clients, especially automotive and premium drinks brands, due to US tariff uncertainty.
This contrasts the "significant progress" System1 claimed in its US business for 2025, when revenue for the region rose 49%. Indeed, the company described one of its goals as "winning in America", which accounts for about 54% of its market research costs.
Nonetheless, System1 expects financial 2026 revenue to be 15% higher on-year, with seasonally stronger performance in the second half. The company is currently targeting profit in line with expectations, "based on prudent cost controls" and investments in US growth.
"We are confident that the business remains on track to achieve its medium-term objectives. I am greatly encouraged by the progress already made this year in our key target areas," commented Chief Executive James Gregory.
"New business growth remains strong, however existing client spending has tightened in the past few months in response to US tariffs, as we said it might in April, and exchange rates have worked against us by reducing the sterling value of our top line. We believe these are relatively short-term effects and remain focused on winning for our clients and shareholders over the medium and long term."
Alongside Wednesday's earnings update, System1 said that the firm's founder and President John Kearon will transition to the role of non-executive director from Sept 1. Kearon will remain at the company to lead a new advisory committee called Qualco.
System1 shares were down 6.0% at 407.00 pence on Wednesday morning in London.
By Holly Munks, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
System1 Group