BrainJuicer Warns of Cost Increases

Online research innovator BrainJuicer has warned in an AGM statement today of an increase in its costs, resulting from increased share based payment charges and the expansion of its account management teams to support long-term growth. Shares were down 21% as of Monday morning.

The company returned to vibrant good health last year with a 17% increase in revenue to £24m and pre-tax profit of £3.5m, after surprising many industry-watchers in 2012 with its first 'poor year', and the subsequent shedding of 9 percent of its workforce. Today the company said that the sharp rise in its share price since this time was 'likely' to lead to a much increased share based payment charge in 2014, totalling around £1m including National Insurance payments - the 2013 figure was £0.3m.

The investment in growing its client team will add to 'a somewhat higher rate of cost growth from the second quarter of the year onwards', according to the statement. Recent high profile hires have included former Nielsen NeuroFocus exec Jeff McDonald as Vice President, North America and Carlos 'Cadu' Eduardo Chiba as Client Director, Brazil, based in its São Paulo office. Other announcements this year have included a promising partnership with Toluna and the US launch of the FeelMore50 - a ranking of the '50 most effective emotional ads'.

Today's statement said the company has so far this year generated revenue growth in 'most of our main markets and with most of our major multinational clients', and increased the share of total business for its 'unique 'Juicy' products' to almost 80% from 74% the previous year.

The firm is online at 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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