12th May 2014 08:46
LONDON (Alliance News) - Shares in blur Group PLC dropped by a third Monday after it said that revenues from a project with a value of around USD3.6 million will now be delayed into 2014, leading it to reduce its revenue estimate for 2013 for a second time.
blur operates a cloud-based platform where buyers can submit briefs for a range of professional and business services called the Global Services Exchange.
blur now expects to post revenue of USD4.8 million for 2013, up from USD2.8 million in 2012. Shore Capital noted that these levels refer to the gross value of projects undertaken by third parties, rather than the blur's net revenues, represented by fees the group charges, which are about 20% of the gross number. Annual revenue for the 2013 full year is therefore expected to be about USD960,000, said Shore Capital analyst Robin Speakman.
The company had previously reduced its revenue guidance to between USD5.3 million to USD5.6 million in April, down from the USD10 million it originally forecast for 2013.
blur said that although the project would be delayed, the total value of projects submitted to its Global Services Exchange in the year and under contract are worth USD22.2 million, up from USD2.4 million in 2012. It expects the remaining USD17.4 million of bookings to be recognised as revenue in the future when milestones are achieved or services have been delivered.
The company expects to post a loss before interest, tax, depreciation and amortisation of around USD6.3 million, widened from USD1.8 million in the previous year, due to its higher level of investment.
blur's net cash as at the end of April was USD5.6 million, and it said that in order to fund further growth it has retained its nominated adviser N+1 Singer to explore financing opportunities.
Shore Capital pulled its forecasts for the company following the warning in April and is awaiting new guidance, which it now expects with the company's full-year results next Tuesday.
"Revenue visibility and confidence is likely to remain an issue for a while however, in our view, given the evolving nature of the business model with larger and extended contracts," Shore's Speakman said.
Shares in blur were trading down 33% at 185.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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