System1, the marketing services group, today announces its results for the six-month period ended 30 September 2019 (“H1”).
6 months ended 30 September Unaudited | |||
2019 | 2018 | ||
£m | Restated for IFRS 16* | Previously reported* | |
Revenue | 13.73 | 13.18 | 13.18 |
Gross Profit | 11.59 | 10.80 | 10.80 |
Underlying Overheads | (9.19) | (8.90) | (8.88) |
Normalised Profit Before Tax | 2.40 | 1.90 | 1.92 |
Ad Ratings operating costs | (1.10) | (1.09) | (1.09) |
Share Based Payments | 0.10 | – | – |
Exceptional Credit | – | 0.25 | 0.25 |
Profit Before Tax | 1.40 | 1.06 | 1.08 |
Highlights
o | 4% growth in Revenue to £13.73m (2018/19: £13.18m), 2% in constant currency |
o | 7% growth in Gross Profit to £11.59m (2018/19: £10.80m), 4% in constant currency |
o | 26% growth in Normalised Profit Before Tax (excluding Ad Ratings costs) to £2.40m (2018/19: £1.90m*) |
o | 33% growth in Profit Before Tax (including Ad Ratings costs) to £1.40m (2018/19: £1.06m*) |
o | 34% growth in Profit After Tax (including Ad Ratings costs) to £0.89m (2018/19: £0.67m*) |
o | 33% growth in diluted Earnings Per Share to 6.9p (2018/19: 5.2p*) |
o | £1.17m investment in Ad Ratings, of which £0.23m has been capitalised and £0.94m expensed (the £1.10m of Operating Expenditure in the table above includes £0.16m of amortisation) |
o | £4.10m Cash at 30 September 2019 and no debt (31 March 2019: £4.32m and no debt) |
o | Maintaining interim dividend at 1.1 pence (2018/19: 1.1 pence) |
* The Company has implemented IFRS 16 (leases) and as a result restated its prior year results.
Commenting on the Company’s results, John Kearon, CEO of System1, said:
“We continue to build out our new world class Agency by leveraging our unique, Advertising Effectiveness IP, data and services. At a time of much change sales, profits and industry profile are growing steadily.”
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