BrainJuicer profits set to grow by 17%
By Ian Lyall
January 16 2015, 7:42am
BrainJuicer has a very quirky style, which extends to its website (pictured).
The market research firm BrainJuicer (LON:BJU) said its American business performed well as it updated on progress.
In a comprehensive trading statement it guided investors that it expects pre-tax profit for 2014 to be in the order of £4mln, compared to £3.6mln in the prior year.
Revenues were up 1% at £24.6mln in the year just gone, or 5% on a constant currency basis.
While the UK was flat, the US performed well, increasing revenue around 10% in constant exchange rates.
The relatively subdued performance masked a better performance from the core quantitative product, offset by a decline in the lower margin, qualitative Juice Generation business.
The latter is volatile in nature and so not a good indicator of underlying progress, BrainJuicer said.
The company was highly cash generative with £5.3mln in the bank at the year-end. In 2014 it returned £3.9mln to investors via ordinary and special dividends.
BrainJuicer is at the heart of a revolution in market research that can more accurately predict successful marketing.
It has developed two main tools: Predictive Markets, which uses the “wisdom of the crowd to identify winning concepts” and its ComMotion ad-testing approach to predict famous adverts.
Building on this bedrock of behavioural science they turn what could be perceived as a slightly ‘touchy-feely’ form of analysis into a means of “identifying efficient, high-return advertising”.
The firm also has “qualitative” Juice Generation process, which it says helps clients “gain real insight into their consumers and give the company a commercial edge”.
And its behaviour change unit might sound like it's better suited to a young offenders’ institution, but actually helps clients when they need to do the most difficult thing in marketing, which is changing consumer behaviour.
Employing 170 people in 11 countries, BrainJuicer has been around since January 2000, on the public markets since 2006 and now works with 15 of the world’s top 20 companies and 70 of the top 250. All of them are household names.