BrainJuicer Axes Italian Office

UK-based online specialist BrainJuicer has decided to close its office in Italy, which has made a 'significant' loss. The group as a whole published its formal results yesterday, confirming it had grown revenue just 1% in 2014, to £24.65m.

Group operating profit increased 21% to £4.30m, and profit before tax also rose 21% to £4.29m. Revenue from the firm's core 'Juicy' quantitative products increased by 4%; while its Juice Generation business saw revenue decline 28%. Commenting on the company's results, founder John Kearon said that in terms of short-term outlook, the Board is optimistic about the firm's prospects for 2015, but as always, cautious too 'given our limited revenue visibility'.

By geography, gross profit grew by 11% in the US, while in the UK - the firm's largest market - it was flat. Together the businesses in these two countries generated 68% of gross profit and 76% of profit (before central overheads). In Continental Europe, gross profit fell 14%, due in large part to a 30% decline in Switzerland. BrainJuicer's German office 'bounced back' after a poor prior year, growing gross profit by 15%; while in France revenue was up significantly. In Holland, they fell slightly. The firm said it had decided 'reluctantly' to close the office in Italy and service the Italian clients from its UK and Swiss offices.

In Asia (offices in China, Singapore and India) gross profit grew 36% - 'though just 3% after adjusting for a client the company reallocated from Continental Europe. In Brazil business declined by 15%, four fifths of which was due to 'particularly adverse currency movements'.

Chairman Ken Ford (pictured) comments: 'We remain fully committed to delivering growth, and creating further value, over the medium and longer term. Experience has taught us that winning mandates, or preferred supplier status, does not always give rise to an immediate or significant increase in revenue from the client in question. We will nonetheless continue to pursue such opportunities - not least because winning them delivers further valuable endorsement for our behavioural science-based methodology. We will try to generate growth from the introduction of new variants of some of our established products, and potentially also from acquisitions when we are convinced they will create value for BrainJuicer shareholders.'

Ford also confirmed that BrainJuicer is also preparing to move its HQ to larger offices in London during 2015.

Web site: www.brainjuicer.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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