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.

2-Nov-2018 – 180p – £22.6m – PER 8.44

Interim Results For The 6 Months To End September 2018 – Revenue down 5%, PBT up 28% and 26% growth in Diluted EPS. There’s £3.55m Cash, down from £5.78m and the Interim Dividend is held at 1.1p but the Final Dividend may be reduced (depending on the scale of further investment in Ad Ratings and on opportunities to repurchase shares at an attractive valuation).

I still reckon that these guys may be able to sort their problems out but in the meantime I am going to remain on the side-lines.

6-Jun-2019 – 237p – £30m – PER 9.4

Results For The 12 Months To End March 2018 – Seems basically all round flat here.

Still not enough here to get me more interested at present.

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