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System1 shares fall on profit warning
Shares in marketing and brand consultancy firm System1 Group fell on Monday after the London-based company warned investors that gross profits for the twelve months leading to 31 March would be around 20% less than in the previous year.
System1 said that trading throughout the third quarter had "continued to be worse than anticipated".
After overheads grew by 8% over its first trading half, the group took steps to reduce costs in the third quarter, expecting overheads for the whole year to come in at "low-to-mid-single digits".
"On this basis, the company expects profit before tax for the full year to be a little over break-even," System1's trading update read.
Nevertheless, the group highlighted that its cash position "remains sound" with a cash balance of £4.6m and no debt.
As of 0240 GMT, shares had declined 13.77% to 332.00p.