Squeezed BrainJuicer Sheds 9% of Staff

Online specialist BrainJuicer has made 9% of its workforce redundant, saving £0.8m in costs following 'disappointing' trading in the final months of 2012.

Back in November, BrainJuicer predicted that revenue in the last quarter of the year would fall 'significantly below' 2011 levels. Today in an interim trading statement, the firm has confirmed that in 2012 the seasonal increase in revenue during the final two months of the year fell 'significantly short' of that in previous years.

Year-on-year revenue growth of 11% over the ten months to October was followed by a 25% year-on-year decline during November and December, leaving revenue for the full year just ahead of 2011. For 2012, pre-tax profits are now anticipated to be approximately £1.5m, after taking account of one-off redundancy costs totalling £0.3m.

As a result of the reduction in headcount, BrainJuicer now expects the overall percentage increase in its costs during 2013 to be in 'low single digits', compared with increases in 2011 and 2012 of 40% and 13% respectively (before year-end bonus payments).

At the year end, the firm's cash balance was £3.7m, the same as in December 2011, and BrainJuicer had no debt.

Web site: www.brainjuicer.com .