System1 gross profit slightly down

The company reported its gross profit was slightly down in the 2018/2019 financial year at £22m, but was up 4% in the second half of the year compared to the six months to the end of March 2018.

System1 generated pre-tax profits for the year – excluding its new Ad Ratings service, share based payments and a business rates rebate – of £3.7m, up 80% from 2017/18.

The company attributed this increase to lowering its operating costs by 9% and stabilising its consultancy business – which comprises its market research activities and advertising agency activities.

System1 invested in £3.1m in Ad Ratings during 2018/2019. Users of the service can access System1’s database of adverts to compare their ads’ effectiveness with that of competitors.