|
System1 Group PLC on Wednesday said it will postpone its planned tender offer and current share buyback programme as it conducts a strategic review aimed at increasing shareholder value.
System1 shares fell 16% to 210.45 pence each in London on Wednesday.
The review will be led by independent directors and the firm's advisor, Canaccord Genuity Group Inc.
System1, a London-based marketing and brand consultancy company, expects the review to be ready by the end of November. It said that ‘the board believes that System1 is very well placed to enjoy significant growth in the next decade.’
However, it added: ‘The board has decided to postpone the currently planned tender offer and the current share buyback programme, with decisions on future returns of capital being considered as part of the overall review.’
In June, the firm said it would return up to £1.5 million of excess cash via a tender offer ‘at the earliest opportunity’ after publishing its 2022 financial year results.
In these results, which were published in July, the company reported pretax profit for the financial year ended March 31 fell by 54% to £945,000 from £2.1 million a year prior. It reiterated the promise of a tender offer ‘at the earliest opportunity’ in its annual results.
Copyright 2022 Alliance News Limited. All Rights Reserved.
|
