System1 Group PLC on Tuesday said it expects annual profit to be around £1 million short of its previous expectations amid lower consultancy revenue in the US.

Shares were trading 28% lower at 264.50 pence each on Tuesday morning in London.

The London-based marketing and brand consultancy company said it expects total revenue in the fourth quarter ending March 31 to be around £1 million short of previous expectations.

System1 blamed this on a ‘sudden and unanticipated reduction’ in the forecast for bespoke consultancy project sales in the US.

As a consequence of the lower consultancy revenue in the US, pretax profit for the final quarter and overall full-year are expected to be around £1 million short of its previous expectations.

In the previous financial year, System1 reported a pretax profit of £2.1 million on revenue of £22.8 million.

It affirmed that it is taking rapid action to address the consultancy sales performance in the US.

System1 noted that cash net of borrowings was ‘strong’ at the end of January at £9 million, compared with £6.5 million at end of March 2021.

Copyright 2022 Alliance News Limited. All Rights Reserved.