This latest update was released because Q3 trading “continued to be worse than anticipated” and followed its October 2017 announcement that “cuts and deferrals to some major FMCG client marketing budgets” had meant gross profit was 9% down on the previous year at that stage.

In a statement, System1 added: “As the year has progressed, the company has taken steps to reduce overhead cost growth. After overhead growth of 8% in H1 (with investment in headcount in the US and the advertising agency), we anticipate overhead growth over the year in 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 ( 2016/17: £6.3m).”

The trading statement also said System1 Research was launching this month an industry standard of ‘Advert1sing Quality’ to support its advertising research business and to create new revenue lines.  

The company said with its new offer and a restructure, along with the advertising quality standard, it expected System1 Research to return to growth in 2018/19.

It added that its cash position remains sound and that it had a cash balance of £4.6m and no debt (as of December 2017 ). It expects its System1 Advertising Agency to be profitable by 2018/19.