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(Alliance News) - System1 Group PLC on Wednesday said Covid-19 hurt its first-half sales, with its US arm particularly hit, and the marketing services firm warned on potential impairments as it reviews its "office footprint".
System1 shares were down 11% at 102.00 pence each in London on Wednesday at midday.
For the six months to the end of September, System1 said its revenue and gross profit will be down roughly 25% year-on-year. Pretax profit is expected to come in at about GBP600,000, before impairments, down 57% from GBP1.4 million.
"Overall, the first half of the current year saw a marked reduction in sales compared to the prior year, due partly to the impact of Covid-19 on the business of many of our clients. The downturn was particularly pronounced in the US," System1 said. "The UK and Asia Pacific produced double-digit revenue growth."
System1 added: "The company is reviewing its office footprint for lease impairment in view of the ongoing Covid-19 pandemic and new ways of working."
The company said that any impairment will be a non-cash charge and will be confirmed in its interim results.
"Given continued uncertainty over the medium- and longer-term impact of Covid-19, we are continuing to suspend financial guidance for the time being," System1 said.
It will also pay no interim dividend, after a 1.1p payout a year earlier.
By Eric Cunha; ericcunha@alliancenews.com
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