System1 revenues recover in H2

Advertising agency System1 said on Wednesday that annual revenues had somewhat recovered from what had originally been quite a weak start to the year.

System1 stated revenues for the six months ended 31 March were up 8%, compared to a 26% fall in the first half, meaning full-year revenues had declined by 11%.

The AIM-listed group also reported an increase in profitability during the second half of the year, with full-year profits pegged to have risen from £2.0m to £2.9m.

System1 stated it also plans to restart its share buyback programme, which it was forced to suspend in 2020 as a result of uncertainties regarding the impact of the Covid-19 pandemic on the company.

Looking forward, System1 stated it was focused on achieving revenue growth over the short and medium-term, with the firm set to increase discretionary investment in product development, IT, marketing and relationships with advertising agencies and platform partners to facilitate this.

"We plan to remain profitable and to continue to generate cash in the 2021/22 financial year, notwithstanding that we are targeting revenue growth to be at least matched by the rate of cost growth as we prioritise scaling our automated predictive products," said System1.

As of 1010 BST, System1 shares were up 23.68% at 235.0p.