Blur (BLUR) provides an online exchange which allows businesses to commission services and experts to pitch for the work. When there's a match, Blur facilitates the project - taking a 20 per cent cut of the value of the project on completion.
When the service was launched in January 2010, just three briefs were submitted each month. Now, however, Blur receives 100 briefs - many from large companies. Likewise, the average brief value has grown from $1,500 (£980) in 2010 to $10,800 in 2013's first quarter. The exchange is now used by more than 25,000 service providers, with 10,000 users joining in 2012 alone, across 141 countries - although 91 per cent of 2012's revenue was generated in the UK and the US.
Operationally, the gross margin fell to 26 per cent from 2011's 49 per cent. However, this reflects a higher proportion of project revenues and a move to a pure platform-driven model - management sees this as a higher-quality revenue stream. The headline pre-tax loss, meanwhile, largely reflects a 135 per cent year-on-year hike in expenses - employee numbers grew from 14 to 40 in 2012.
Broker N+1 Singer expects a loss per share of 2.5¢ for 2013 (from a 8.8¢ loss in 2012), with EPS of 2.4¢ for 2014.
| BLUR GROUP (BLUR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 151p | MARKET VALUE: | £37m | |
| TOUCH: | 149-152p | 12-MONTH HIGH: | 181p | LOW: 73p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 20¢ | NET CASH: | $4.4m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 0.89 | -0.68 | -39.0 | nil |
| 2012 | 2.81 | -1.87 | -9.00 | nil |
| % change | +216 | - | - | - |
| £1=$1.53 | ||||
