One-Off Costs Reduce BrainJuicer First Half Profit

UK-based online researcher BrainJuicer has issued a half-year trading update, in advance of formal results due on September 24th. Revenue rose four percent but pre-tax profits will be around 25% down on last year with overheads growing faster than revenues.

BrainJuicer, whose CEO is John Kearon, pictured, said sales of its core quantitative products, which make up around 90% of its business, increased by around 7%, with gross profit on these up 11% - however this was partially off-set by a decline in revenue from its 'Juice Generation' services, currently in transition. Of its two main geographical markets, sales fell slightly in the UK but were up in the States, versus H1 2014. Continental Europe grew strongly while Brazil made 'good progress'.

Overheads outpaced revenue due to continued 'investment for future growth'. This included the hiring of two senior managers to spearhead the firm's 'Brand Strategy' initiative, and one-off costs including the June relocation to a larger London HQ - now completed.

The company says its financial position remains strong, with a cash balance of £5.3m at the end of last month - the same as in December 2014, despite having returned £0.4m in dividends to shareholders during the half year.

Looking ahead, BrainJuicer says there should be no further material one-off costs in the second half, in which it traditionally generates the majority of its profit, and that the Board believes the firm 'is in a position to meet profit expectations for the full year'.

Home page: www.brainjuicer.com .