System1 (SYS1)

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16-Oct-2017 – 537.5p – £67m

Trading Update For The 6 Months To End December 2017 – Gross Profit expected to be 9% lower than last year (12% in CC) and this is a little scary “We remain cautious about our prospects over the remainder of the financial year due to our usual lack of revenue visibility”.

I too am cautious.

27-Oct-2017 – 517.5p – £64.5m

Results For The 6 Months To End September 2017 – Revenue down to £13.82m from £15.28m (-12% in CC), PBT down to £0.85m from £2.79m (-70%) and EPS down to 4.2p from 13.7p (-69%). This is also scary – “Trading in Q3 to date has not yet resulted in a pick-up in our order book.  Were the gross profit decline seen in H1 to be repeated in H2, then our PBT for the full year would decline by 50% to 60% (2016/17: £6.3m)”.

If I was holding, I would be looking for the exit.

8-Jan-2018 – 399.7p – £49.8m – PER 18.1

Trading Update – It gets worse – Gross Profit this year now expected to be 20% lower than last year.

Much of this bad news may already be in the price. For me it still seems too expensive.

18-Apr-2018 – 300p – £37.4m – PER 18.0

Trading Update For The 12 Months To End March 2018 – Can’t see any good news here.

No more interested here today than I was yesterday, I remain Neutral for now.

1-Jun-2018 – 300p – £37.4m – PER 16.7

Results For The 12 Months To End March 2018 – The figures are bad, but do seem to be pretty much in-line with forecasts (the numbers I can see on Stockopedia). Figures aside, if you’re still interested, the sob (sorry, rise and fall (and hopefully rise again)) story in the rest of the report is worth a read.

Although these guys may be able to sort this out I remain Neutral for now.

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