17th Apr 2014 08:24
LONDON (Alliance News) - Technology company Blur Group PLC Thursday said it has revised its full-year revenue expectations lower due to delayed revenue recognition on a number of project bookings in 2013, which it said will now be recognised in the current financial year and beyond.
Analysts say the delay in a "significant proportion of the revenue associated with project bookings" during the year means that recognised revenue will be lower than expected for 2013, missing revenue expectations.
The company, which offers a cloud-based platform where buyers can submit briefs for a range of professional and business services, said that as projects submitted to its Global Services Exchange have increased in value, complexity and duration, it has extended periods between project submission, project kick-off and project completion.
"Due to these longer timeframes, the board has taken a more conservative view of project revenue recognition, with several larger value projects extending over several reporting periods or years," the company said.
The company, which will announce its full-year results for 2013 on May 20, said that it is expecting recognised revenue in the region of USD5.3 million to USD5.6 million, compared with USD2.8 million in 2012, with total project bookings for the same period of USD22.2 million, compared with only USD2.4 million the prior year.
Blur shares dropped 30.00% Thursday morning, trading at 315.00 pence per share.
Blur said that revenues in the first quarter of its current financial year were driven by high growth in the volume of submitted projects, average project values, and a greater penetration in its markets, but warned that a delay in revenues in 2013 will mean it will miss revenue expectations.
It said that 1,031 projects were submitted in the first quarter, compared with 359 in the same quarter a year earlier. The value of projects submitted in the quarter significantly increased to USD73.7 million, compared with only USD3.9 million the prior year, the firm said.
Blur said that 52% of projects in the first quarter were from North America, while projects submitted from Asia Pacific now account for over 12% of all projects through its platform, and over 30% of projects kicked off in the quarter were from repeat customers.
Blur said the average value of a submitted project was USD71,500, up from USD10,840 a year earlier.
"Our project values are ahead of plan and we have taken on our largest ever project worth USD15 million from our legal category," said Chief Executive Philip Letts in a statement.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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