MAIS.L Regulatory News (MAIS)

blur Group plc

("blur Group", the "Group" or the "Company")

Q3 2016 Quarterly Business Update

blur Group plc (AIM:BLUR), the market-leading Indirect Spend Platform & Marketplace, today releases key metrics for Q3 2016, a period where the addition of goods to blur's offering has created a solution that eliminates waste in Enterprises across all indirect spend categories.

Q3 2016 highlights:

● Successful addition to blur's online Marketplace allowing organisations to source goods alongside business services for the first time

● Enterprise-focussed strategy continues to drive improvements to EBITDA, costs and cash burn

● New pilot initiated with global electronics/technology company, during the quarter

● Fourth consecutive quarter of improved underlying cash burn - down by 11% to $1.0 million in Q3 2016, from $1.1 million in Q2 2016 (excluding Foreign Exchange movements). In addition, $0.4 million relating to R&D tax credit was received in the quarter yielding net cash burn of $0.6 million.

● Cash at the end of Q3 2016, including $0.9 million unrealised foreign exchange movements, was $3.6 million

● Operating costs down 23% compared to Q2 2016. Down by 74% compared to Q3 2015

● Reduction in project numbers in Q3 due to summer seasonality, exaggerated by delayed decision-making following the outcome of the 'Brexit' referendum. Non-Enterprise project volumes remained stable

● EBITDA continues to be in line with management expectations

**blur defines the Enterprise as a business with 50 or more employees

During Q3 2016, the Group saw a reduction in overall project volumes due to summer seasonality, exaggerated by delayed decision-making following the outcome of the 'Brexit' referendum. Non-Enterprise project volumes grew for both Pitching On and Completed projects, while non-Enterprise Kicked Off projects remained broadly constant, compared to Q2.

Enterprise sales cycles are developing, as Enterprise better understand how to adopt blur's platform with one new Enterprise pilot starting in Q3. In addition, blur continued to deepen relationships with key Enterprise customers including:

UK listed enterprise, aerospace engineering; blur continues to work with this large corporation on a pilot program that is now planned to start in Q4 2016/Q1 2017. blur's expanded offering, including goods, means that the Company can now address all categories of indirect spend using the Marketplace. The roadmap with this customer conforms to the Group's expectation of long sales cycles when working with Enterprise clients.

Global enterprise, sportswear retailer; blur is working with a corporation on an initial pilot due to start in 2017. Initially operating in one trial geography, blur is seeking to complete a pilot phase which, if successful, could lead to a wider, global rollout.

Global enterprise, electronics/technology; following a long initial sales process, blur has commenced initial pilot activities with this international corporation.

Pilot programs are continuing with the multi-platform media and oil and gas listed Enterprises highlighted in the Q2 2016 metrics update.

Financial update

blur's focus on larger, Enterprise accounts continues to drive sequential improvements to EBITDA, costs and cash for the fourth consecutive quarter.

The Group's cash balance at the end of Q3 2016 totalled $3.6 million compared to $4.3 million at the end of Q3 2016. During Q3, blur received an R&D tax credit in respect of 2015 totalling $0.4 million.

blur's reported cash balance has been impacted by $0.9 million of unrealised exchange losses in 2016 to date and $0.1 million of unrealised exchange losses in Q3 2016, as the valuation of blur's sterling denominated cash balances were further affected by the decline in the GBP:USD exchange rate.

Excluding the unrealised exchange losses cash, which is predominately held in GBP, would be valued at $4.5 million at the end of Q3.

Excluding these exchange movements, and Q3's R&D tax credit receipt of $0.4 million, the cash burn for the quarter was $1.0 million.

blur's operating efficiency also continued to improve, driven by further process improvements in the blur 6.0 platform. These resulted in a reduction in operating expenses of 23% in Q3, compared to Q2 2016 and by 74% compared to Q3 2015.

Philip Letts, blur Group CEO, commented:

"Q3 2016 has seen the Group announce a major addition to its online marketplace, allowing blur's customers to source goods alongside business services for the first time.

"This expansion is the next step in blur's evolution and a key pillar of the blur 6.0 development roadmap. It reflects our increased perception of market readiness to adopt blur's online marketplace as a strategic platform for all categories of indirect spend, not only business services.

"Sales cycles continue to be elongated. However, we are experiencing deeper engagement with blur's Enterprise customers, whose focus is now firmly on cost control and cash optimisation. These organisations are working with blur to better understand their indirect spend and to identify the many areas where they can partner with blur. We continue to prove that adoption of blur's solution can crystallise savings of between 10% & 30% for the typical large corporate.

"As we seek to capitalise on this increasing Enterprise market readiness, I'm delighted to announce that Laurence Cook has joined blur's management team from 1 November 2016, as Chief Commercial Officer with responsibility for Enterprise platform sales.

"Laurence brings a wealth of experience selling Enterprise Software solutions including partnering closely with the BBC, while working at Siemens IT Outsourcing Solutions and as well as stints at Energis, Mastek and Sopra Steria. Laurence's deep understanding of the Enterprise software market combined with the opportunity presented by blur's innovative indirect spend solution will enable the Group to press ahead with its plans to achieve multi-million dollar roll outs of our platform in larger organisations.

"At the same time, the Group also remains focussed on its cash and costs. That focus, together with our Enterprise strategy, delivered the fourth consecutive quarter of EBITDA, cost and cash burn improvement.

"Our continuing commitment to cost and cash control, combined with wider roll outs of blur's solutions within repeating Enterprise customer accounts both remain key to blur's path to sustainable profitability."

This announcement contains inside information.

For further information, please contact:

blur Group plc investors@blurgroup.com

Tim Allen Tel: +44 (0) 1392 927618

Shaun Dobson/Jen Boorer N+1 Singer

Tel: +44 (0) 20 7496 3000

Alistair de Kare-Silver Yellow Jersey PR

Tel: +44 (0) 7825 916715

About blur Group plc at blurgroup.com

Since 2010, blur Group has been helping enterprises worldwide eliminate waste and inefficiency in their indirect procurement process through its market leading Indirect Spend Platform & Marketplace. To date over 65,000 businesses, including companies like, Tesco, Danone, Trinity Mirror, and PwC, have adopted blur's platform to either buy or sell goods and services online submitting over $500m of requirements to blur Group's platform.

blur Group is a public company listed on the London Stock Exchange's AIM market (BLUR) and is headquartered in the UK with regional sales offices in the US and Europe.