System1 Group Regulatory News (SYS1)

19 Jan 2010 07:00



BrainJuicer Group PLC

("BrainJuicer" or "the Group" or "the Company")

Trading Update

Profitable growth

Leading international online market researcher, BrainJuicer Group PLC, today gives the following update on trading ahead of its Preliminary Results for the financial year ended 31 December 2009 which will be announced on 9 March 2010.

Highlights:

BrainJuicer's reputation for innovation grew further in 2009 with revenue from the Group's strategically important 'Juicy' products making significant gains and now accounting for over 60% of the Group's revenue (2008: 46%). These products are being sold to some of the world's largest buyers of market research. In 2009 the Company's clients included 11 of the world's top 20 buyers of market research, up from 9 in 2008, and revenue from these clients grew by over 70%. Client satisfaction remains high with repeat business at around 80%.

Revenue increase was driven by continued strong progress in the US, growing at around 60%, and by very encouraging contributions from the new offices in Switzerland and Germany. The Company's  UK business recovered after a slow start to the year (revenue for the full year was around 2% lower), and Dutch revenue grew about 10%. Overall the Group achieved approximately 26% revenue growth (21% on a constant currency basis).

Operating profit is up by more than 25% whilst having at the same time invested more than ever before in developing and validating products, in back-office operations and in the Company's software  platform. We believe this investment will drive future growth.

The Group has reached an agreement to acquire High Level Research Inc., its Canadian licencee, for a nominal sum.  This will be managed as a regional office within our North American business.

John Kearon, CEO of BrainJuicer, commented: "To have grown so strongly in a year when spending on market research seems to have declined for the first time in 25 years is a tremendous achievement and testament to the attraction of our innovative 'Juicy' products, expanded geographic footprint and talented researchers to our major multinational client base. Despite the dire economic conditions, we have continued to make significant investments.  Whilst many of the largest research agencies have apparently declined and retrenched during 2009, we continued to invest heavily in new and existing 'Juicy' products, enhancing the efficiency and scalability of our technology platform and expanding our geographic footprint. These investments will, we believe, enable us to secure the global and regional mandates which we need to fulfil our longer term ambitions.

"The Board is confident that in 2010 we can continue to grow our business through  further product  innovation and increasing our market share with major multinational customers."

An analyst presentation, given by John Kearon, CEO, and James Geddes, CFO, will be held at 9.30am on 9 March 2010 at Abchurch's office, 16th Floor, 125 Old Broad Street, London, EC2N 1AR.

- Ends -

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