Blur Group (BLUR) generated spectacular revenue growth during the first half, but that isn't a major surprise - after all, the company proudly displays its sales metrics in real time on the homepage of its website. Third-quarter metrics are already up a staggering 61 per cent on a strong second quarter, and analysts at N+1 Singer have upgraded full-year revenue forecasts by 8 per cent to $9.5m (£5.9m), and by 3 per cent for 2014 to $24.5m.
Blur is the leading online exchange that lets businesses commission services - design, marketing and technology projects are popular - and experts pitch for the work. It's a market estimated to be worth over $2trn and management is investing heavily to become 'the Amazon of the services industry'. Administrative costs more than trebled to $2.73m year-on-year, and N+1 Singer does not expect a profit until 2015, but Blur easily raised $11.5m in June to accelerate its expansion and cement its first mover advantage. Clearly, the strategy is working. The number and size of projects is increasing fast as the platform gains traction among businesses of all sizes - the average brief value now stands at $17,000, up from $10,700 a year ago and just $1,500 in 2010.
BLUR GROUP (BLUR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 449p | MARKET VALUE: | £133m | |
| TOUCH: | 443-455p | 12-MONTH HIGH: | 480p | LOW: 73p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 49¢ | NET CASH: | $13.1m | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 0.97 | -0.51 | -3.0 | nil |
| 2013 | 3.41 | -1.93 | -7.0 | nil |
| % change | +250 | - | - | - |
£1=$1.60 | ||||
