Brainjuicer Share Discussion Threads

[pentangle] 24/3/2011 11:14

Longshanks - sounds a good plan. They are small enough to be below the radar for many private (and even more so, institutional) investors with a £30m market cap. The more exposure they can get the more they will come to the attention of a wider audience. I think that 174 posts in 4 years on this thread speaks for itself - its the least active board of any of the companies I have shares in.

Their new website is very slick and in true Brainjuicer tradition. Like you I have no intention of selling. 40% for 9 years is in excess of a multiple of 20 times, so I think we will all be out celebrating if that comes about!

[jdb2005] 24/3/2011 08:43

Well done Longshanks - excellent results and as you indicated earlier more to come as BJU expand their markets. This innovative company has won countless awards and been leaving their competitors green with envy !!

[longshanks] 24/3/2011 08:32

I am starting a new thread pentangle - as I feel sufficiently inspired to start giving this company a little more of my investment time.

If you check out the videos on the Brand New (as of last night) - very slick - website - covering these results then you will see that they intend to grow at 40% p.a. for at least the next nine years!!

I actually believe they will exceed that intention.

My 12 month target price for these is now £4.40 - it was £2.15 last year. Whilst they continue to meet my expectations I have no intention of selling and will invest more each month in this fabulous little company.

[theophilus] 24/3/2011 07:40

The closing line below continues to encourage.

Commenting on the Company's results, John Kearon, Chief Juicer of BrainJuicer, said: "Our 10th anniversary year was a significant year for everyone at the Company.

As clients increasingly look for greater inspiration and insight from their market research, we've had great success at developing what we call "Juicy" tools - techniques which give our clients more predictive, nuanced and inspiring understandings of consumer behaviours. Our consistent growth with some of the world's largest businesses and a clutch of industry awards give us confidence we're doing the right things. Achieving our ambition of becoming a major global agency will mean continuing to invest in Juicy products, opening new offices and attracting the best talent by ensuring our culture is as Juicy as our products.

We're well placed to deliver further growth in 2011 and beyond."

----------------------------------------------------------------------------

Th.

[angler] 24/3/2011 07:37

Beat consensus forecasts for:
ptp +11.4%
eps +6.3%
div +7.6%

[pentangle] 24/3/2011 07:30

Excellent set of final results. Strong performances in all geographies, except for Netherlands where I seem to recall there have been some personnel issues during the year. China and Brazil are in their early days, but hopefully will be contributing before too long.

What a great, ambitious little company! I really see no reason why they should not continue to grow profits at the historic 35% a year, given their innovative products and small current share of a large market. Definitely one to tuck away and not lose too much sleep over - this is a long term holding for my SIPP.

[longshanks] 24/3/2011 07:14

1.8p dividend when I expected 1.75p - another tick.

I feel like I should be a broker! If this doesn't fly today - birds should not have been given wings.

[theophilus] 24/3/2011 07:10

Operational Highlights


e UK returned to significant growth (revenue up 42%)
e Continued strong growth in North America (revenue
growth of 61%)
e New offices in Switzerland and Germany continued
to develop, growing revenues by 62% and 41% respectively
e Opened offices in strategically important markets:
China and Brazil
e Management further strengthened - Chief Operating
Officer appointed
e Introduced two new Juicy products - DigiViduals(TM)
and SatisTraction(R)
e Serving 11 of the 20 largest buyers of market research
globally
e Increasing industry recognition: five more awards
including Marketing Magazine's Best Research Agency
of 2010 and Research Magazine's Best Place to Work

-------------------------------------------------------------------------------

Th.

[theophilus] 24/3/2011 07:05

BrainJuicer Group PLC

("BrainJuicer" or "the Company")

Final Results for the 12 Months ended 31 December 2010

Innovative, international online market researcher, BrainJuicer Group PLC (AIM: BJU) today announces its Final Results for the 12 months ended 31 December 2010.

Financial Highlights


e 38% revenue growth to GBP16,360,000 (2009: GBP11,814,000)
e 35% growth in operating profit to GBP2,216,000 (2009:
GBP1,645,000)
e 34% increase in pre-tax profit to GBP2,217,000 (2009:
GBP1,658,000)
e 26% growth in fully diluted earnings per share to
11.3p (2009: 9.0p)
e 117% increase in cash flow before financing activities
GBP1,785,000 (2009: GBP824,000)
e 687,000 shares bought back for GBP1,150,000
e 18% increase in cash to GBP2,770,000 (2009: GBP2,343,000),
and no debt
e 1.8p final dividend proposed, making 2.4p for the
year (2009: 1.9p)

------------------------------------------------------------------------

Th.

[longshanks] 23/3/2011 21:32

looks like I got a sneak peak whilst they were testing the new website...it is now locked down (presumably till tomorrow) in the "splash" teaser page.

Have to say it looks very swish. Makes one very happy to be a shareholder.

EDIT: website back online again....

More information available through the new videos on the website too including one from the CFO covering the highlights.

Some snippets gleaned:

Currently 120 people - plan to have 150 by EOY...tick; 200 by end of 2012.
FY Dividend increased by 27% (not mentioned explicitly - but presumably 1.65p)

Revenue growth rate expectations are for ~40% for the considerable future: implies that it won't be by significant acquisitions - just pure organic growth....£340m turnover by 2020 at that rate.

Holland is tough - continues to be tough.

Currently 89% repeat business from clients; spend with BJU is very low (less than 1%) as percent of total MR costs so plenty of scope for continuing increased revenue from existing clients.

Cash flow more than doubled - even accounting for large CapEx spend!!

Profit after tax is growing slower (28%) - principally due to higher U.S. tax rates!!

Results are no flash in the pan. Business is hugely scaleable.

[longshanks] 23/3/2011 20:45

I am getting a good feeling. Check out www.brainjuicer.com!! It is all New.

A bit naughty but they appear to have issued the 2010 FY highlights on there ahead of the market open tomorrow....tut tut. The link to the full results doesn't work though so I guess it is not a big deal...


Check out the details - I have more or less nailed it:

Revenue £16.36m
P.T.Profit £2.2m
Fully diluted EPS of 11.3p
No details of Dividend

That is a little below my "high end" PTP expectation but WAY, WAY, WAY above market expectations.

These are good results. If you check out the revenue and profit bar charts - it is not really obvious - but if you look carefully the growth isn't straight but actually concave...growth is accelerating...we could be going exponential. Call me excited but this is just what I was looking for.


Can't wait to read the outlook and first quarter trading update. Could be tomorrow when we really break out of this, already, impressively steep channel into a whole new rate of explosive share price growth.

[longshanks] 23/3/2011 17:29

Last orders before results tomorrow.

Just a reminder of the trading update made in January with salient points highlighted by me:


14 January 2011

Press Release 14 January 2011

BrainJuicer Group PLC

("BrainJuicer" and the "Company")

Trading Update

BrainJuicer, the innovative, international online market research agency has today released the following update on trading during its financial year ended 31 December 2010. The Company's final results will be announced on 24 March 2011.

Trading during the seasonally important final quarter of the year was good, and for the year as a whole revenue increased by more than 35%, to over GBP16m. Profits have also grown well, and the Company expects operating profit for the year to somewhat exceed market expectations. BrainJuicer continued to invest heavily in support of future growth, and yet cash generation was again strong: period end cash was over GBP2.5m, up from GBP1.6m at end June, with no debt.

Growth in 2010 was driven primarily by the Company's operations in the US and UK, as clients, especially multi-nationals, continued to adopt its innovative research methods. Our businesses in Switzerland and Germany both made good progress in only their second full year of operation. During the year BrainJuicer opened offices in Brazil and China to enhance its geographic coverage and we are optimistic about our prospects in these strategically important markets.

The Company has continued to build its reputation and credibility within the industry, winning Marketing Magazine's Research Agency of the Year 2010, Best Paper Award from the Market Research Society, Young Researcher of the Year (to one of our employees) from ESOMAR, and Best Place to Work from Research Magazine.


------------------------

Tomorrow my top end expectations are:

Financials:
Revenue: £16.3m
P.T.Profit: £2.3m
FY Dividend: 1.75p

News:
Current trading ahead of expectations
China/Brazil trading profitably
Netherlands turnaround
New panel system commissioned and generating revenue/reducing costs
Increasing headcount to 150 by EOY
New offices - Americas/India/Singapore/??

[longshanks] 22/3/2011 21:07

John Kearon has been busy this week at ARF's annual re:Think conference in NYC spreading his gospel of "me to we research".

Meanwhile Orlando Wood, is in London talking about "Gamification" (how games can be used in business): I sense a new novel Market Research technique coming out of those Brainjuicer Labs.

I feel that we have a crescendo of events leading up to the company's annual results notice on Thursday. Normally results presentations are fairly vanilla and simply restate (with more detail) what was issued in the January trading update. However, Brainjuicer doesn't do "Normal" and I am starting to think we will have anything but Normal Results - esp given the market behaviour these last two days.

----------------

There are a bunch of new videos on Brainjuicers vimeo site covering the February "Best of Esomar" event run in NYC. Some very high calibre people in the audience including Beth Uyenco - Director of Research for Microsoft Digital - and Fred John, Senior Business Leader at Mastercard International.



I am getting a strong hunch that we have a significant client base forming that are clammering for the insights generated by Brainjuicers new Digividual innovation.

Roll on Thursday.

[longshanks] 22/3/2011 14:49

Moving to a new all-time high today on relatively low volume. Two days until we get the prelims and price is already fast approaching HB's relatively modest 12-month target set in January.

BJU now have an IT support manager: started this month. Looks to me like we will get news of the new IT platform being launched with these results.

Headcount increased to 116

Revenue generating staff:
38 UK
23 US
10 NL
6 DE
5 CH
3 CN
2 BZ
2 AU (Licensees)

Overheads/Development:
11 Build & Technical
10 Admin
6 Directors

[longshanks] 21/3/2011 13:37

Headcount increased to 115

Revenue generating staff:
38 UK
23 US
10 NL
6 DE
5 CH
3 CN
2 BZ
2 AU (Licensees)

Overheads/Development:
10 Build & Technical
10 Admin
6 Directors

[longshanks] 21/3/2011 12:13

Off topic

My speculative portfolio is doing well today. I bought a load of Rockhopper shares last week when I thought they looked terribly oversold ahead of the "appraisal well" results. Those results have now come in as expected and I'm seeing a 38% paper profit.

Will wait a while because I think it will rise over the next couple of weeks to £4+ and will then take some profits (and probably reinvest in my favourite LTHs).

Anyone else got lucky recently?

[longshanks] 21/3/2011 10:38

A bit more activitiy ahead of FY results due on Thursday this week.

I am expecting a very decent picture of a company in rude health and developing fast. The only area of doubt is on performance of the Netherlands team - who appear to have suffered through a change in senior management.

Still - lets look for £2.1m pre-tax profits and an indication that the China/Brazilian offices are generating decent revenue. With less than six months activity - we shouldn't expect profitability in these regions yet (though it would be a plus).

The other key news item I am looking for is commissioning and first use of the new panel platform they have been developing over the last four years. This could improve margins dramatically - adding £300K-500K to the bottom line and give them greater control over development of their innovative solutions.

[pentangle] 16/3/2011 12:36

I think we are due the final results on the 24th. We have already been told they will be somewhat above expectations. The share price has held up very well during the last week's turmoil.

[longshanks] 16/3/2011 12:21

Brainjuicer appears to be struggling to retain staff in the Netherlands. They have recruited another high calibre research executive to the UK but have lost Client Director, Martijn Berntsen, in Rotterdam.

Berntsen't profile in LinkedIn wouldn't suggest he was an integral part of the Brainjuicer team though - so it may be all part of Carola Verschoor's cleanup of the Dutch operations.

Headcount remains at 114

Revenue generating staff:
38 UK
22 US
10 NL
6 DE
5 CH
3 CN
2 BZ
2 AU (Licensees)

Overheads/Development:
10 Build & Technical
10 Admin
6 Directors

[longshanks] 11/3/2011 09:02

Further coverage of those presentations: New York, Chicago, Basle and San Francisco has been added to the website.

It is interesting to note that the Basle one was sponsored by Novartis and the San Francisco one by Gap Inc.

Looks to me like they are continuing to attract big names to their client list. They already have three international mandates, perhaps they will double that number this year.

[longshanks] 02/3/2011 11:53

Another two members of staff for Brainjuicer U.S. whilst one person less on the UK IT support team.

Total headcount of 114 now. Approximate breakdown is as follows:

Revenue generating staff:
37 UK
22 US
11 NL
6 DE
5 CH
3 CN
2 BZ
2 AU (Licensees)

Overheads/Development:
10 Build & Technical
10 Admin
6 Directors

---------------

There are a bunch of new videos/recordings available through the companies website - and some that aren't...just search for "vimeo brainjuicer" in Google.

For me the interesting one is that made of Alex Batchelor's recent presentation in California. Give or take a few lines it is almost a carbon copy of a presentation made by John Kearon a year or so back on the basis of "Me to We Research".

It seems to me that the company has found its formula for success and is packaging it in a really smart way. The underlying message of "Me to We Research" is that the old ways of doing research built around the isolated views of individuals are systemically wrong and that the insights generated from this research cannot be relied upon.

Brainjuicer is a pioneer in techniques to re-write the way insight is generated and leveraging technology that other, older and established players are wary or incapable of developing.

Difficult to gauge the way these techniques are being accepted - but given that the U.S. staff count has grown from 17 to 22 since September - I think we can be fairly confident it is becoming so.

Growth in the U.S. market alone could see us catapult to income of £20m next year. Factor in growth in the other markets and we could be looking at total income of £22m to £24m.

Share price is cheap at anything under £5 if the company can achieve this kind of growth. On 24th March we are promised the FY results and I am sure this will include details on how growth is actually accelerating rather than just being maintained. You can't have a comment: "the Company expects operating profit for the year to somewhat exceed market expectations" in the trading update without following it up with improved market guidance in the FY results.

[longshanks] 23/2/2011 17:38

John Kearon has written comments on Research Live in relation to the recent private-equity takeover of Toluna (and Research Now before that).



Rather worryingly he talks of the attractions in being private and how high growth businesses such as Toluna (and Brainjuicer by implication) are attractive to private equity looking for better returns.

Bearing in mind that the clients of these P.E. firms are fantastically rich already and probably not paying enough tax, I say "HANDS OFF BRAINJUICER"; this is not a cheap take-away that I want to sell for a 40% mark-up.

[longshanks] 22/2/2011 18:23

Another new member of staff for Brainjuicer U.S.

Total headcount of 113 now. Approximate breakdown is as follows:

Revenue generating staff:
37 UK
20 US
11 NL
6 DE
5 CH
3 CN
2 BZ
2 AU (Licensees)

Overheads/Development:
11 Build & Technical
10 Admin
6 Directors

Interestingly the company now appears to have three US offices: NY, LA and Chicago. This region is now a bigger contributor than the Netherlands and could become the real motor behind the company's development over the next 12 to 18 months.