BrainJuicer performs 'strongly' after two years of 'modest' growth
Marketing firm BrainJuicer said that it performed “strongly” during 2016 after two years of “modest” growth, as profit increased.
FTSE AIM All-Share
754.87
17:14 23/04/24
Media
11,966.12
16:59 23/04/24
System1 Group
490.00p
16:55 23/04/24
For the 2016 calendar year, gross profit jumped 27%, or 15% excluding impact of exchange rates, to about £25.6m, from the previous year, due to the US business and “encouraging” recovery in continental Europe.
Pre-tax profit is expected to increase 37% to about £6.2m, after a share-based payments charge of £500,000.
Gross profit from the advertising testing and brand tracking services rose by around 80%, and represents around 39% of the company's total gross profit, compared with 27% in 2015.
Cost increases were held well below the rate of gross margin growth, despite the company paying a higher bonus payments, compared with a “negligible payout” in 2015.
Over the year £5.2m was returned to shareholders through ordinary and special dividends and share buy-backs, and ended 2016 with a cash balance of £7.8m, equivalent to 63p per share, which was higher than the £6.4m in 2015.
The company is changing its financial year end date from 31 December to 31 March, so results for 2016, which will be published on 9 February, will be followed by audited results for the 15 months to 31 March 2017, which will be posted in June.
Shares in BrainJuicer were up 10.92% to 660p at 0826 GMT.