Last checked at 16 Jul 2015 07:00
Press Release 16 July 2015
BrainJuicer Group PLC
("BrainJuicer" and the "Company")
Pre close trading update
BrainJuicer (AIM: BJU), the international online market research agency, today releases the following half-year ("H1") trading update. The Company will announce its interim results for the 6 months to 30 June 2015 on 24 September 2015.
Overall, the Company achieved revenue growth of approximately 4% compared with the same period in 2014. The overall impact of exchange rate movements was not material. Sales of BrainJuicer's core quantitative products, approximately 90% of our business, increased by around 7%, with gross profit on these products increasing by 11%. This was partially offset by a decline in revenue from Juice Generation, as we transition these services to our new Brand Strategy initiative.
Our two main markets experienced contrasting fortunes during the half. The US delivered strong growth ahead of H1 2014, but in the UK sales were below the H1 2014 level. Elsewhere, Continental Europe grew strongly, and Brazil also made good progress.
Overheads grew faster than revenue during the half, as the business continued to invest for future growth. We recruited two senior managers to spearhead the Brand Strategy initiative, and average headcount was 10% higher than in the comparable period. H1 2015 also included some one-off costs, including costs relating to moving our HQ to larger offices in London, which occurred in June (this move has now been completed). Due in part to one off costs, including the above, first half profit before tax will be approximately 25% lower than that achieved in 2014.
The Company's financial position remains strong. At the end of June 2015, the Company had a cash balance of £5.3m (December 2014: £5.3m), after having returned £0.4m to shareholders during the half year by way of dividends.
The Company has enjoyed good growth in its core quantitative products in the first half, and it does not anticipate incurring further material one-off costs in the second half. The Company generates the majority of its profit in the second half, and whilst revenue visibility remains typically limited the Board believes the Company is in a position to meet profit expectations for the full year.
The Company can be found at www.brainjuicer.com
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For further information, please contact:
BrainJuicer Group PLC
John Kearon, Chief Executive Officer Tel: +44 (0)20 7043 1000
James Geddes, Chief Financial Officer www.brainjuicer.com
Canaccord Genuity Limited
Simon Bridges / Henry Fitzgerald-O'Connor Tel: +44 (0)20 7523 8000
www.canaccordgenuity.com