- Advertising effectiveness agency System1 said it expected post a higher adjusted annual profit following a recovery in second-half sales.

The company said it would resume a share buyback programme but held off on reinstating its dividend.

Adjusted profit, which excludes impairment, share-based payments, government support, bonuses, loan interest and certain provisions, for the year through March was seen rising to £2.9 million, up from £2.0 million year-on-year.

Revenune was expected to fall 11%, following an 8% year-on-year improvement in the second half, offsetting a 26% drop in the first half.

Second-half operating costs would fall 16% year-on-year.

'With the resumption of sales growth and a strong net cash position, the company will look to reinstate the share buyback programme, which was suspended in 2020 due to uncertainty over the potential impact of the Covid pandemic on our business,' System1 said.

'A return to dividend payments is not currently envisaged.'

Looking forward, the company said it would increase discretionary investment in product development, IT, marketing, and relationships with advertising agencies and advertising platform partners.

'We will also continue to recruit new talent, after a sizeable increase in headcount during the latter months of 2020/21 which took year-end headcount to 147 from 128 at the half year.'

'The drive for further efficiency improvements in 'run' costs will continue.'

'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. '

At 9:12am: (LON:SYS1) System1 Group Plc share price was 0p at 115p

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