Trading Update

RNS Number : 6651U

BrainJuicer Group PLC

20 January 2017

 

Press Release

20 January 2017

BrainJuicer Group PLC (AIM: BJU)

("BrainJuicer", or "the Company")

Trading Update

BrainJuicer (AIM: BJU) today releases the following update on trading during the 12 month period ended 31st December 2016.

BrainJuicer traded strongly during 2016, regaining momentum after the modest growth of the 2 previous years.  For the 12 month period, Gross Profit, our main top line indicator, increased by some 27% to approximately £25.6m, driven primarily by continued strong progress by our US business and an encouraging recovery in Continental Europe.  Excluding the impact of exchange rate movements the increase in Gross Profit was some 15%.

In terms of products, our Advertising Testing and Brand Tracking services again delivered strong growth.  In aggregate Gross Profit from these comparatively high margin and  scalable quantitative services rose by around 80%, and represented around 39% of BrainJuicer's total Gross Profit, compared with 27% in 2015.

Our System1 creative advertising agency, launched in early 2016, is making an encouraging start with costs net of initial revenues in 2016 on budget at £0.3m. 

Cost increases, and in particular central overheads, were held well below the rate of Gross Margin growth.  Even after a much higher level of bonus payments, compared with a negligible payout in 2015, Pre-tax profit for 2016 is expected to be some 37% higher at around £6.2m, (2015: £4.5m) after a share-based payments charge of £0.5m (2015: £0.2m)

BrainJuicer again proved highly cash generative during 2016.  £5.2m was returned to shareholders over the 12 months via ordinary and special dividends and share buy-backs, but the Company still ended 2016 with a cash balance of £7.8m, equivalent to 63 pence per share, compared with £6.4m at end December 2015.  BrainJuicer has no debt.

As previously announced, BrainJuicer is changing its financial year end from 31^st December to 31^st March.  During this transition year, the announcement of unaudited results for 2016 on 9^th February 2017 will be followed by audited results for the 15 months to 31^st March 2017, which will be announced in June 2017.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.  Upon the publication of this announcement, this inside information is now considered to be in the public domain.

The Company can be found at www.brainjuicer.com.

For further information, please contact:

BrainJuicer Group PLC	Tel: [phone]
John Kearon, Chief Executive Officer
James Geddes, Chief Financial Officer
Canaccord Genuity Limited	Tel: [phone]
Simon Bridges / Cameron Duncan / Emma Gabriel

 

END

 

 

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