Crowd theory is BrainJuicer's winning theorem. At a fraction of the cost of normal market research, a crowd of 500 unrelated people can, so it is claimed, pick consumer product winners. Not only that but they can distinguish between good and average products and work better without incentives.
There's no doubt either that blue chip consumer groups are taking an interest: BrainJuicer's clients now include 11 of the world's top 20 market research buyers. "Juicy" product sales jumped 66 per cent last year while more straightforward market research suffered during recession. That trend is set to continue: online work currently accounts for around 28 per cent of world market research, rising to an expected 40 per cent in 2014. So how can BrainJuicer benefit?
UK results were flat last year, so the answer is to go overseas. In 2009, sales in the US (the largest and most competitive research market) jumped from £1.6m to £2.6m while new Swiss and German offices were profitable in their first full year. The company has established a subsidiary in Canada and signed up marketing heads in both Brazil and China.
Cannacord Adams forecasts adjusted 2010 pre-tax profits of £1.76m and EPS of 10.2p (2009: £1.66m/9.2p), rising to £2.38m and 13.8p in 2011.
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BRAINJUICER (BJU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 156p | MARKET VALUE: | £20.1m | |
| TOUCH: | 152-160p | 12-MONTH HIGH: | 156p | LOW: 93p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 37p | NET CASH: | £2.34m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£000) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 2.94 | -17 | – | – |
| 2006 | 4.61 | 125 | -0.9 | nil |
| 2007 | 6.57 | 893 | 5.2 | nil |
| 2008 | 9.32 | 1372 | 7.6 | 1.50* |
| 2009 | 11.81 | 1658 | 9.2 | 1.90 |
| % change | +27 | +21 | +21 | +27 |
* Excluding special dividend paid in October | ||||
