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Blur Group PLC (MAIS)

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Thursday 17 April, 2014

Blur Group PLC

Trading Update and Notice of Results

RNS Number : 0307F
Blur Group PLC
17 April 2014
 

April 17, 2014

RNS

blur Group plc

("blur," the "Group" or the "Company")

 

Notice of Results and FY13 Trading Update

 

blur Group plc (BLUR) , the technology company that's reinventing commerce at blurgroup.com1, expects to announce its full year results for the year ended 31 December 2013 on 20 May, 2014. 

 

During 2013, projects submitted to blur Group's Global Services Exchange have increased in value, complexity and duration, a trend that is continuing into 2014.  This is a positive development for the Group as it continues to achieve many of its growth milestones earlier than anticipated.  Since H2 2013 onwards multi million dollar, longer timeframe projects have started to be managed through the Exchange, which has resulted in extended periods between project submission, project kick-off and project completion.  Due to these longer timeframes, the Board has taken a more conservative view of project revenue recognition with several larger value projects extending over several reporting periods or years and therefore a significant proportion of the revenue associated with project bookings achieved in 2013 will be recognised in 2014 and beyond. 

 

As an increasing number of projects managed through the Exchange are larger and more complex, there may be an additional element where the project's value can be contingent upon either moving milestones or the performance of the expert.   As a result of this evolving project characteristic, the Group has decided in the case of projects with a contingent element, to adopt a more conservative and prudent approach to revenue recognition.  As a result, recognised revenue will be lower than expected for the 2013 financial year but with a significant value of deferred revenues relating to these projects now expected to be recognised in 2014 and beyond. Recognised revenue is expected to be in the range of $5.3 million to $5.6 million for 2013 (2012: $2.8m) with total project bookings for the same period of $22.2 million (2012: $2.4m), an +825% increase year on year. Of the remaining project bookings that carry forward, we expect the majority to be recognised revenue in 2014.  This is evidenced by the strong financial performance in Q1 2014.

 

In the quarterly metrics for Q1 2014 (also released today), blur Group highlights an increase of 19 times the value of projects submitted compared to the same period in 2013.  In addition, as highlighted in the metrics, the average project value has increased more than 7 times on the year before, mainly as a result of a higher than expected number of larger projects being submitted and managed through the Company's Global Services Exchange.

 

Summary - Financial Highlights

 

Year ended 31 Dec 2013

Year ended 31 Dec 2012

Change

Bookings

$22.2m

$2.4m

825%

Revenue (Recognised)

$5.3m - $5.6m

$2.8m

90% - 100%

 

This conservative approach to revenue recognition ensures the Company has less exposure to any external impact on annual (reported) recognised revenues.  These could be as a result of timeline delays to project delivery by either customer or expert, both of which are outside of the Group's control.  blur Group grows its first mover advantage as illustrated by the continued increase in bookings which, accompanied by the adoption of a prudent approach to revenue recognition for larger projects, underpins a stronger  financial position in the long term.  This approach, in conjunction with the very strong quarterly metric results, means the Group is well positioned to continue its growth as it enters the second quarter of 2014.

 

 

ENDS

 

 

For further information please contact:

blur (Group) plc

Ruth Speakman

 

Tel:  +44 7795 011678

[email protected]

N+1 Singer


Shaun Dobson / Matt Thomas

Tel:  +44 (0) 20 7496 3000

 

 

Panmure Gordon (Joint Broker)

 

Dominic Morley / Charles Leigh Pemberton

Tel: +44 (0) 20 7886 2500

 

 

Newgate Threadneedle


Caroline Forde / Josh Royston/ Hilary Millar

Tel:  +44 (0) 20 7653 9850

 


About blur (Group) plc at blurgroup.com

blur Group is a public technology company (BLUR: LSE AIM) reinventing how businesses around the word do commerce at blurgroup.com. blur's Global Services Exchange is a proprietary services--commerce (s-commerce) platform that enables 45,000+ business users in 145 countries (as of April 2014) to buy, sell and deliver core business services and take advantage of Software as a Transaction™ to pay for those projects.

 

 



1 blur Group offers a cloud-based platform where buyers can submit 'briefs'  for a full range of professional and business services to a worldwide group of 'experts'

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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