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System1 shares jump 19% as marketing analytics group forecasts return to profitable growth
Yahoo Finance· 2026-03-16 09:30
Core Viewpoint - System1 Group's shares increased by 19% to 253.2p following the announcement of strong new business wins, which are expected to drive record second-half revenue and profitability ahead of market expectations for the next financial year [1]. Group 1: Financial Performance - Trading in the final quarter of the year ending March 31, 2026, has been strong, with full-year revenue expected to align with previous guidance of approximately £37 million [2]. - The company anticipates adjusted EBITDA for the year ending March 2027 to be significantly above the current market forecast of £4.3 million, with a margin of at least 15% [3]. Group 2: Strategic Initiatives - The positive outlook is attributed to a cost optimization program, which includes changes to the organizational structure, sales incentives, and go-to-market strategies, aimed at reducing the cost base as revenue increases [4]. - New business wins have accelerated in the final quarter, with double-digit growth in innovation product sales and enhanced engagement with major brand clients [4]. Group 3: Future Guidance - One-off restructuring costs will be included in the current year's results, with further details to be provided alongside full-year figures due in July 2026 [5]. - The chairman expressed confidence that the company has the right offerings and team to achieve double-digit revenue growth while expanding margins [5].