10th Apr 2015 06:56
LONDON (Alliance News) - Blur Group PLC on Friday said it expects its recognised revenue for 2014 to be substantially lower than expected owing to protracted contract delays.
The company, which runs an online marketplace for business services, said that following discussions with accountant KPMG LLP, it has determined that a number of older projects started between late 2013 and early 2014, which have experienced delays, are showing a "lower likelihood of completion".
As a result, its recognised revenue for the year to the end of December will be "substantially lower" than previous expectations. Blur said it and its auditors are dealing with enquiries from UK accounting watchdog the Financial Reporting Council on recognition of these contracts, which could impact the timing of the release of its 2014 results.
"This process will draw a line under certain older projects and completes blur's transition which started with the updated revenue recognition approach announced in the second quarter 2014. With the increasing mix of enterprise customers over recent quarters the business is benefiting from better project completion, higher repeat business and tighter invoicing to cash," said Deputy Chairman David Sherriff.
Blur said it remains focused on reaching profitability by early 2016 and said its net cash position remains in line with expectations at USD17.4 million as at December 31, 2014.
By Sam Unsted; [email protected]; @SamUAtAlliance
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