System1 Group Plc · LSE:SYS1
System1 — BrainJuicer Group — FY2010 Earnings Presentation
19 slides from System1's earnings presentation, March 2011
Slide 1: 2010 Results
fe brainjuicer. r Fresher Insights, Better Marketing. 2010 Results March 2011
Slide 2: 2010 Financials Highlights
2010 Financials Highlights 38% revenue growth to £16,360,000 41% gross profit growth to £12,622,000 35% growth in operating profit to £2,216,000 34% increase in pre-tax profit to £2,217,000 25% growth in post-tax profit to £1,480,000 26% increase in fully diluted eps to 11.3p 117% grow
Slide 3: Revenue
Revenue £11.89 —> £16.4mM in 2009 in 2010 601 projects f4o projects £20,000 per project 99 000 oer oroj oar CITg SOLO QaoGf
Slide 4: Revenue
Revenue Clients include 11 of the 20 largest market research buyers in the world beceeees and they represent 31% of revenue 89% repeat business (2009 revenue from clients who returned in 2010)
Slide 5: Gross profit
Gross profit Gross profit margin = 77% Up from 76% in 2009 6
Slide 6: Gross profit
Gross profit We're a technology enabled consultancy ... but what does this mean?
Slide 7: Gross profit
Gross profit No of account teams (fee earners) 12* Gross profit per team £1.05m Staff cost per team £0.36m Profit contribution per team £0.69m Profit contribution % (of gross profit) 66% * Excludes our 2 new countries, Brazil and China which were in start-up mode
Slide 8: Operating profit
Operating profit 216m —p> FO OM in 2009 in 2010
Slide 9: Operating profit: High proportion of overheads are central
Operating profit High proportion of overheads are central ….. 10
Slide 10: A high percentage of central overheads are for growth
Operating profit … and a high percentage of central overheads are for growth
Slide 11: Revenue and operating profit – geographic split
Revenue and operating profit – geographic split UK back to strong growth US continues to do well Decline in Netherlands due to management changes and reorg in its largest client Newer countries – Switzerland and Germany developing nicely China and Brazil getting started 12
Slide 12: Profit before tax
Profit before tax 1.7m —p> FO OM in 2009 in 2010 PBT = Operating Profit - Interest Income ... and Interest Income was negligible ...
Slide 13: Profit after tax
Profit after tax £1.2m —> £1 .5mM in 2009 in 2010 Higher average tax rate due to higher US profits - 33% in 2010 up from 29% in 2009
Slide 14: Diluted EPS
Diluted EPS 9.00 —& 11.30 in 2009 in 2010 Basic EPS up alittle more ... 27% ... from 9.2p to 11.7p
Slide 15: Diluted EPS: Future dilution?
Diluted EPS Future dilution? we have 13.11m issued shares 660,000 of which are held in Treasury plus 1.37m unexercised share options plus further shares earmarked for senior management additional incentive scheme as at year end (81 December 2010)
Slide 16: Diluted EPS: potential dilution scenarios
Diluted EPS ... and the further shares for senior management ... are related to share price performance in 2014 ... at £3 = O shares at £5 = 787,000 shares at £7 = 1,124,000 shares so what does this do to dilution? Issued shares 13.11m Plus: — Unexercised options + 1.37m Less: Treasury shares - 0.66
Slide 17: Dividends
Dividends Proposing final dividend of 1.8p per share Total (interim + final) = 2.4 26% growth 5 times covered by earnings
Slide 18: Cash Flow
Cash Flow Cash flow before financings more than doubled 19
Slide 19: Historic growth
Historic growth Trends bode well for the future… Revenue Operating Profit Compound annual growth: 2006 – 2010 = 37% Compound annual growth: 2006 – 2010 = 47% £m £m 20