3rd Nov 2016 10:48
LONDON (Alliance News) - Blur Group PLC Thursday said it saw a reduction of overall project volumes on its enterprise services platform and marketplace in the third quarter of 2016, but its focus on larger Enterprise accounts has continued to drive improvements to its earnings, costs and cash.
Blur attributed the lower project volumes to summer seasonality, which it said was exaggerated by delayed decisions following the outcome of the UK's referendum on its membership in the European Union in June.
It had cash at the end of the third quarter of USD3.6 million, compared to USD4.3 million at the end of the third quarter of 2015. It noted that its cash balance in the quarter was hit by around USD900,000 of unrealised exchange losses in 2016 to date, as its sterling denominated cash balances were hit by the depreciation of the pound against the dollar.
Excluding the unrealised exchange losses cash would be valued at USD4.5 million at the end of the quarter, it said.
Additionally, Blur said its operating efficiency also continued to improve, driven further improvements in its Blue 6.0 platform. This led to a reduction in operating expenses of 23% in the third quarter compared to the second quarter and 74% year on year.
Meanwhile, Blur said its earnings before interest, tax, depreciation and amortisation continues to be in line with its expectations.
"Q3 2016 has seen the group announce a major addition to its online marketplace, allowing blur's customers to source goods alongside business services for the first time," said Chief Executive Officer Philip Letts in a statement.
"At the same time, the group also remains focussed on its cash and costs. That focus, together with our Enterprise strategy, delivered the fourth consecutive quarter of EBITDA, cost and cash burn improvement," Letts added.
The company has also appointed Laurence Cook as its chief commercial officer, responsible for Enterprise platform sales, from Tuesday.
Shares in Blur were untraded Thursday, last closing at 5.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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