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Real-Time news about Brainjuicer (London Stock Exchange): 0 recent articles
|longshanks: No worries.ODX is definitely the one I favour for short-term appreciation. A baillie Gifford fund manager has built up a personal stake of 11% - and I think it is good for a 50-100% share price rise over the next 6-12 months.The share at the bottom of my list: SPHR is a real basket case though and I certainly wouldn't buy just yet. Results announced today were awful.|
|longshanks: I guess the point is that if they achieve profits of 185% above those of today's, then the share price will be much, much higher in 4 years time and we should be happy to have this level of dilution. A vesting threshold of 10% pa (46% over 4 years) seems reasonable.This is a "people business" and they need to retain the brightest and best.|
The new LTIP will run for a four-year period, commencing on 1 April 2017 with vesting dependent on the achievement of stretching performance conditions. We anticipate the 3 Executive Directors excluding the Chief Executive Officer (see below) and 4 Senior Executives will participate with opportunity levels dependent on seniority. Awards will be made in the form of nil cost options or conditional shares (where appropriate for local tax/legal reasons).
The maximum individual opportunity that will be granted under the LTIP is as follows:
• Executive Directors: 1.50% of the issued share capital1
• Senior Executives: 1.00% of the issued share capital
The total number of shares that can therefore be granted under the LTIP is equal to 8.5% of the issued share capital.
Awards will be subject to stretching Gross Profit growth targets. This will be measured based on the compound annual growth (CAGR) in Gross Profit (as defined in the Annual Report and Accounts) over the four-year period. The number of shares awarded that will vest at different performance levels is as follows:
..................................................Executive Directors..........Senior Executives
Threshold: 10% p.a. Gross Profit CAGR................0.50%..........................0.35%
Target: 20% p.a. Gross Profit CAGR...................1.00%..........................0.70%
Stretch: 30% p.a. Gross Profit CAGR..................1.50%..........................1.00%
In addition there will be a Profit after Tax (“PAT”) and share price underpin. The PAT underpin will operate such that a minimum of 10% p.a. growth must be achieved for vesting up to the Target level, with 20% p.a. PAT growth required for vesting between Target and Stretch levels.
The Gross Profit and PAT growth levels are designed to represent organic growth and as such the Remuneration Committee retains the discretion to make adjustments to the targets and/or the performance measures to take account of any acquisitions or other material events.
The absolute share price underpin will be determined on grant but will be no less than 130% of the mid-market price of the shares on the day the awards are granted. This underpin further mitigates against payment for failure.
Chief Executive Officer
As the Company founder, the Chief Executive Officer, Mr. John Kearon, already holds almost 30% of the Company’s shares, and the Remuneration Committee believes that the award of further equity options to him would be inappropriate. It is therefore planning on putting in place an Annual Bonus for the Chief Executive Officer, recognising his strategic leadership of the Company to achieve these demanding growth targets, which would pay an annual cash bonus of 25% – 75% of basic salary if Gross Profit grows by 10% p.a. - 30% p.a. CAGR as described above, subject also to the profit underpin levels applying to the LTIP.
Fingers crossed re: formatting. Apols in advance if it goes awry!|
|longshanks: Really good, positive TU.37% increase in PTP, cash higher than last year and done so after returning almost all of last years cash balance in share buybacks and dividends.Their "sticky" customer tools for brand development are really taking hold so forward revenue visibility should become clearer.All-in-all a very positive set of details.The share price has motored ahead in anticipation of these details but we should now see further broker upgrades. My guess would be £7.50 - given gross profit was ahead 25% (15% in constant currency terms).|
|longshanks: Thanks crazycoops.
I thought it would be interesting to compare against NFC and YOU - so added this too as you may have noticed.
NFC really has been an excellent investment with year-on-year growth since birth.
YOU had a rocky few years - but it too has proven an excellent investment over the last 3 to 5 years.
BJU is definitely behind the curve on both of these two larger peer companies, but it would seem it is definitely in "catch-up".
The one big difference is that NFC and YOU have grown through acquisition and whilst both are strong cash generators they have financed much of that acquisition through debt. BJU has no debt and tends to return surplus cash back to shareholders. That difference in leverage could well account for the deviation in share price performance. I personally prefer the transparency of BJU's balance sheet though: it is clear at a glance whereas the balance sheets of the other two are something of a minefield.
BJU has invested small amounts in new innovations - some disappear like "Digividuals" but the new investment in System1 Agency looks like it has real potential: strong on fluency to coin one of their phrases. If this new corporate branch works it will be transformational and the rate of return far higher than a more traditional acquisition would have proven. If it fails - BJU writes off £300k. That sounds like sensible, manageable risk to me.
|longshanks: I believe the share price may have reached an all-time high|
|longshanks: £5.50 would mark an all time high for the share price.This new creative agency is an interesting development and could radically change the way that advertising is commissioned. I spoke to a senior advertising executive about it; told him that the proposition was to guarantee an ROI to customers of advertising content. He said that is crazy.It could be a crazy notion but to my mind it may mean the advertising world has become complacent to customers' needs. This could pay off handsomely for Brainjuicer and us shareholders. £5.50 represents full value on current performance but could look very cheap in a few years time.|
|sinkersimon: From the AGM statement:-
"Investment in support of anticipated continued long-term growth, and in particular the expansion of our client account management teams, is expected to give rise to a somewhat higher rate of cost growth from the second quarter of the year onwards.
The sharp rise in the BrainJuicer share price during 2013 and early 2014 will likely lead to a much higher share based payment charge in 2014 than would otherwise have been the case. We anticipate a total charge of around GBP1m for share based payments and related National Insurance payments. The comparable charge for 2013 was GBP0.3m."
A 20% drop in share price immediately followed the above.|
|kenmitch: Didn't get a reply about Director selling following a post saying "why would anyone sell?" Now we know the answer. Not holding fortunately having sold for a good profit a while ago, and won't be buying now. Thanks longshanks for your posts. You helped convince me to buy and the too high PE was the reason for selling in time. Hope the share price recovers for those still holding.|
|longshanks: BOOM....there goes the last of the Unilever Ventures holdings at £2.35.
Seem to have a bunch of institutions taking on the bulk of it - we should get some RNS' in the next day of two.
I also suspect that BJ may have bought some of these shares into treasury to continue/complete funding the Employee Benefit Trust.
This EBT is a model of operation that many other public companies should perhaps consider running. Basically there is a long term incentive scheme that has been set up by the company whereby key personnel can be awarded shares if the share price meets certain performance criteria at the end of April 2014. A share price below £3 and the employees get nothing, Above £5 and they get a decent wad of shares and considerably more if the share price is £7 or above. Up to 1.12m shares could be handed out in 3 years time but the company is funding this incentive scheme ahead of 2014 by sensibly buying shares in the market whilst the price is still low. To date they have 660000 in treasury for these purposes. It has not been confirmed but I would not be surprised if they took up some of the UV shares divested today - perhaps spending up to £1m to finance it which, given the healthy balance sheet and fantastic cash flows, would be easily financed.|
Brainjuicer share price data is direct from the London Stock Exchange