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System1 Group

System1 shares jump as it reports rise in half year profits and continues investment in Ad-Ratings arm

The marketing services firm reported that underlying pre-tax profits for the year, including the new division, had risen 28% to £1.08mln while revenues had declined 5% to £13.2mln

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The company said that it would return to growth “in time” despite challenging market conditions

System1 Group PLC (LON:SYS1) shares jumped in early trading Friday after it reported profit growth in its results for the half year as it continued investment in its new ‘Ad Ratings’ business line.

The marketing services firm reported that underlying pre-tax profits for the year, including the new division, had risen 28% to £1.08mln while revenues had declined 5% to £13.2mln.

READ: System1 Group shares fall as marketing agency reports 68% decline in profit

System1 also maintained its interim dividend of 1.1p per share but said that the final dividend for the year may be reduced from its previous level of 6.4p depending on the scale of further investment in Ad Ratings.

The firm’s cash balance at the end of the year was £3.5mln, down from £5.78mln at the end of March.

In its outlook, the company said that it would return to growth “in time” despite challenging market conditions and would continue investment in the Ad Ratings business.

John Kearon, chief executive of System1, said the Ad Ratings service would provide “a new scalable revenue stream” for the group while “new product configurations and more competitive pricing” would help its existing business stabilise and return to growth.

The new business line forms part of an effort to create a more competitive business after the firm suffered a 68% decline in profits at its full-year results in June.

Shares were up 8.3% at 195p.

Quick facts: System1 Group

Price: £2.01

Market: AIM
Market Cap: £25.28 m
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