System1 warns on profits after 'slower than expected' start

Behavioural marketing services firm System 1 Group issued a profit warning after a slower than anticipated beginning to its financial year had continued through the summer.

System1 then stated its gross profit would be down 6% to 11% on last year, and said the reason for this was mainly due to several large one-off innovation projects and a more challenging market.

At the group's annual general meeting on Friday, chairman Ken Ford said, he expected a "little over break-even in profit before tax," as "costs will be some 15% higher than last year".

The group made a pre-tax profit of £2.8m in the first half of 2016 and £6.3m on the year overall.

These announcements had caused stocks to tumble 22.70% as of 1125 BST.