System1 rallies as pre-tax profits surge
By Iain Gilbert
Date: Monday 15 Apr 2019
(Sharecast News) - Marketing services outfit System1 expects to report a surge in pre-tax profits in its upcoming results, bouncing back from a difficult prior year.
System1 told investors on Monday that pre-tax profits were set to have shot up 80% year-on-year to £3.7m for the twelve months ending 31 March - a marked improvement on its 2017-18 figures, when it saw profits plunge 68% to £1.99m as costs rose at the same time clients opted to cut back on market research spending.
Gross profits dipped 1% at £22m.
The AIM-listed group "tightly controlled" its operating costs in its last trading year, leading to a 9% year-on-year reduction and helping it end the year with a cash balance of £4.3m despite having dropped £3.1m on its ad rating subscriptions service.
System1 said it would continue investing in its ad rating service, with a wide scale launch planned in the new financial year.
As of 1055 BST, System1 shares had shot up 11.11% to 220p.
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