System1 to resume dividends after topping profit forecasts
Digital marketing platform System1, which is partnered with Pinterest, is set to resume paying shareholders a dividend after it beat market expectations for the full year.
The London-listed advertising company said it expects to record pre-tax profit of £2.8m for the year ended 31 March 2024, up £2.1m on 2023 and ahead of consensus forecast of £2.4m.
“Marking its confidence in the Group’s cash generation and continuing profitable growth, the Board intends to resume paying dividends,” System1 said on Tuesday.
But investors reacted negatively to the news, with shares plummeting nearly 15 per cent when the market opened.
Shareholders will receive a final dividend for 2024, which will be detailed in the annual results and formally proposed at the company’s annual general meeting in September.
Chief executive James Gregory said: “Our first full year post the 2022 Strategic Review has surpassed our expectations. We have delivered £30m of Revenue, up 28% year on year, growing quarter on prior quarter throughout the year.
“This is underpinned by over 250 new client wins, Platform Revenue up by over 40% and Profit before Taxation up by 300% on the previous year. In the coming year, we will step up investment in attracting, winning and retaining customers in order to continue our growth trajectory,” he added.
System1 said all its regions achieved “substantial double-digit” revenue growth in 2024 and it added over 250 new clients.
In its fourth-quarter results, also posted today, the company said revenue jumped 30 per cent from last year to £8.7m.