Last checked at 17 Jan 2013 10:43
Press Release 17 January 2013
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 during the financial year ended 31 December 2012. The Company's results will be announced on 21 March 2013.
As highlighted in the Trading Update issued on 20 November 2012, trading during the final months of the year proved disappointing. In particular, the strong seasonal increase in revenue which the Company has traditionally experienced during the final two months of the year fell significantly short in 2012 of that in previous years.
Year on year revenue growth of 11% over the 10 months to October was followed by a 25% year on year decline during November and December, leaving revenue for the full year just ahead of 2011. On a more positive note, however, sales of the Company's innovative Juicy products increased by 22% compared with 2011, and represented 68% of total 2012 revenue.
BrainJuicer stated in its November Update that the combination of disappointing revenues and significant cost increases as the Company invested for future growth was expected to leave pre-tax profits for the year well below the £2.8m achieved in 2011. 2012 pre-tax profits are now anticipated to be approximately £1.5m, after taking account of one-off redundancy costs totalling £0.3m.
BrainJuicer's financial position remains strong. At the year end the Company's cash balance was £3.7m, the same as in December 2011. BrainJuicer has no debt.
During the latter part of 2012 BrainJuicer's management implemented a number of measures to minimise aggregate cost increases within the business and fuel growth for 2013. These included redundancies representing some 9% of the total workforce, which will give rise to a full year cost saving of £0.8m. Despite additional costs relating, for example, to continued expansion in markets such as China, Brazil and India, BrainJuicer now expects the overall percentage increase in its costs during 2013 to be in low single digits. This compares with increases in 2011 and 2012 of 40% and 13% respectively (before year end bonus payments).
Management also remain determined to build the business in 2013 and beyond. In particular, BrainJuicer will use its innovative reputation, Juicy products and Behavioural Science positioning (turning human understanding into business advantage) to develop further its strong relationships with major clients - which include many of the world's largest buyers of market research. The Company believes that this approach will enable it to return to healthy growth in Western Europe and the US, where revenue was below target in 2012, and will also help the Company build on the promising positions which it has established in key developing markets.
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