NEWS20 November 2012

BrainJuicer warns 2012 profits will be substantially lower

Financials UK

UK — BrainJuicer has warned that its full-year pre-tax profits are likely to be substantially below the £2.8m achieved in 2011 because trading in the final months of 2012 is “proving disappointing”.

The firm says the full-year outturn will be heavily influenced by the performance in December. However, in a trading update the company said that its traditional strong seasonal increase in revenues is not occurring in 2012.

It is now hoping for a late spur on spend. A further update will be issued during the early weeks of 2013.

The move comes after the group said revenue for the ten months to the end of October was up 11% over the year before. This saw sales of Juicy products grow by 39%, compared with a 22% decline in revenue for its Twist products.

Prior to the update, in September it reported a 14% rise in revenue for the first half of the financial year, largely driven by its UK and US offices.

BrainJuicer says a 12% increase in costs during the first half has made growth difficult and adds “the rate of cost increase during the second half so far has been similar to that seen in the first half.”

However, the company says, its financial position remains strong. At the end of October the company’s cash balance was £3.16m and it has no debt.

John Kearon, founder of BrainJuicer (pictured with CFO James Geddes), said: “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.”