BrainJuicer's (BJU) innovative approach to analysing market research has delivered impressive first-half growth. A new office has also been opened in Italy and growth was particularly strong in the US, Switzerland and China. However, the shares are already highly rated - leaving that growth profile looking factored in.
The group's approach is focused on methods that run counter to the traditional notion that consumers comprise rational decision makers - instead its so-called 'Juicy' products are based on emotion and behavioural economics. Its customers certainly seem impressed and turnover from Juicy products grew from 53 per cent of total turnover to 66 per cent. So far this year, the group has been used by nine of the world's top 20 largest buyers of market research.
BrainJuicer's UK business generated operating profit of £1.84m, representing 41 per cent of the group total. But, as the most mature part of the business, it also contains the largest percentage of slower growth non-Juicy, or 'Twist' products. However, where possible, Twist is being replaced, and revenue from Juicy products rose from 39 per cent of total UK revenues to 48 per cent.
Prior to these figures, broker Edison Research was forecasting full-year EPS of 16.9p (14.8p in 2011).
| BRAINJUICER (BJU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 334p | MARKET VALUE: | £42m | |
| TOUCH: | 330-337p | 12-MONTH HIGH: | 337p | LOW: 284p |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 55p* | NET CASH: | £2.4m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 9.09 | 0.63 | 3.30 | 0.75 |
| 2012 | 10.4 | 0.72 | 3.80 | 0.85 |
| % change | +14 | +14 | +15 | +13 |
Ex-div: 26 Sep Payment: 25 Oct *Includes intangible assets of £1.35m, or 11p a share | ||||
