Last checked at 20 Nov 2012 07:00
Press Release 20 November 2012
BrainJuicer Group PLC
("BrainJuicer" and the "Company")
Trading update
Innovative, international online market researcher BrainJuicer Group PLC (AIM:BJU) today issues the following update on trading for the financial year ending 31 December, 2012.
Revenue for the ten months to the end of October was up 11% over the prior year. However, trading in the final months of 2012 is proving disappointing. In particular, the strong seasonal increase in revenue which the Company has traditionally experienced during the final two months of its financial year, is not occurring in 2012. Revenue during the final quarter is therefore likely to fall significantly below 2011 levels.
In our interim results announcement we highlighted the 12% increase in costs during the first half as the Company continued its pursuit of future growth - strengthening its teams, broadening its geographical coverage, building its infrastructure and investing in product innovation. The rate of cost increase during the second half so far has been similar to that seen in the first half.
Pre-tax profits for the full year are therefore now expected to be substantially below the £2.8m achieved in 2011. The full year outturn will as always be heavily influenced by the Company's performance in December, and a further update will be issued during the early weeks of 2013.
BrainJuicer's financial position remains strong. At the end of October the Company's cash balance was £3.16m. BrainJuicer has no debt.
In terms of geography, our recently established businesses in China and Brazil are both delivering growth ahead of our expectations, and Switzerland is having another good year. Profitability in 2012 has been, to varying degrees, disappointing in the UK, Germany and the US, but the Board is confident that these businesses will return to profitable growth. Pending a pick up in revenue growth the Company is curtailing net new recruitment in these markets.
The current shortfall in revenue reflects primarily a decline in sales of our more traditional "Twist" products. Crucially, revenue from our innovative, added value "Juicy" products has continued to grow strongly. For the first 10 months of 2012 sales of Juicy products grew by 39%, compared with 22% decline in revenue for Twist products.
Perhaps most importantly, we remain convinced of our long term growth potential on the basis of BrainJuicer's approach to market research and the direction the industry is moving in. Traditional assumptions about how people make decisions are being undermined by a growing body of evidence in psychology, neuroscience, sociology and behavioural economics. Research is changing as a result, and BrainJuicer's evolving portfolio of Juicy products is at the forefront of this trend. The pace of change is slower than we would ideally like, but we believe that the barriers will continue to come down as the weight of data and proof continue to validate products such as ours.
The Company can be found at www.brainjuicer.com.
- Ends -
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