System1 Reports on 'Disappointing Year'

UK-based market research and ad company System1 - formerly known as BrainJuicer - has described trading during 2017/18 as 'disappointing', with gross profit down 18% (17% in constant currency terms) to £22.2m.

The company announced the rebrand last year, unifying its MR business BrainJuicer with its ad agency. In a trading update for the twelve months to 31st March 2018, the firm said it has responded to the fall in gross profit by introducing new product offerings and making reductions in its cost base. After 8% overhead cost growth in the first half of the year (vs the comparable prior-year period), these costs fell by 2% over the year as a whole.

According to the company, the decline in overhead costs is due in part to a decline in share-based -payments, following the sharp fall in the company's share price over the last twelve months, from £0.7m last year to approximately £0.1m this year. The decline was also in part due to a reduction in employee bonuses from £2.3m last year to less than £0.1m this year, and reflects a reduction in headcount over the second half of the year.

As a result, System1 now expects profit before tax to be in the range of approximately £1.6m to £2.0m for the year. The company will announce its audited financial results on 1st June.

Led by founder and CEO John Kearon (pictured), the firm is online at: www.system1group.com .