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System1 Group PLC on Wednesday reported a sharp decline in full-year profit, reflecting reductions in client spending across the advertising industry, and despite a marked improvement in the second half of the financial year. The London-based marketing firm said pretax profit declined 60% to £2.1 million in the financial year ended March 31 from £5.3 million the year prior. Revenue edged down to £37.0 million from £37.4 million, with platform revenue up 2.9% to £35.5 million from £34.5 million. Diluted earnings per share plunged 71% to 10.3 pence from 35.2p. The dividend was boosted to 6.0p per share from 5.5p. System1 highlighted a strong second half recovery in revenue, 16% higher than the first, which led to pretax profit being six times higher in the second half than in the first. ‘FY26 was a year of planned investment that coincided with macro headwinds which led to reductions in client spending across the advertising industry, particularly in the first half of the financial year when new US trade tariffs came in to force. The group modified its investment and expenditure plans, which together with a rebound in sales, delivered a full year performance in line with market expectations,’ the firm said. The current financial year has seen continued strong new business activity, the firm said. ‘System1 enters FY27 with a broader customer base, strong operating discipline, and a clear pathway to margin expansion and sustainable growth,’ the firm said. Shares in System1 Group fell 1.3% to 309.00 pence in London on Wednesday. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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