15th Jul 2016 07:24
LONDON (Alliance News) - BrainJuicer Group PLC on Friday, in a trading update for the six months to June 30, said growth was "encouraging" and annual profit should be in line with market expectations.
The market research agency said revenue increased by 13% in the recent half year, with gross profit increasing 15%, on a year-on-year basis. There was a strong performance in the US, BrainJuicer's largest market, with profit rising by around 27%. Profits also increased by 30% in continental Europe and by 22% in Brazil. Profits in the UK declined by 2%, and in the China and Singapore region by 5%.
Ad testing and brand tracking services grew, with profit up 59% year-on-year in the half. System1, a creative agency launched by the company during their first half, incurred costs of GBP300,000 as anticipated.
BrainJuicer's operating profit increased by around 41% to GBP1.7 million. After adjusting for one-off costs, including a head office relocation, the company said pre-tax profit for the half will be similar to the GBP1.7 million reported in 2015.
At the end of June, BrainJuicer had a cash balance of GBP5.2 million, compared to GBP6.4 million in December 2015, after returning GBP2.2 million to shareholders during the first half through dividends and share buy-backs.
BrainJuicer expects to make the majority of its annual profit in the second half of the year, and while revenue visibility is "limited", it should meet market expectations for the full financial year.
BrainJuicer said the decline in the value of sterling versus the dollar, the euro and other leading currencies, following the outcome of the UK's referendum on European Union membership, should benefit the company's non-UK profits which are reported in sterling.
Beyond this, BrainJuicer said it is currently too early to predict what the impact of the UK's exit from the EU on its clients will be.
The company will provide its full set of first half results September 16.
By Lucy Heming; [email protected]
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