Blur Group reports further decline in cash-burn, eyes large Enterprise order, clients

8th Feb 2017 12:31

(ShareCast News) - Online B2B market place Blur Group reported a further slowing in its rate of cash-burn during the fourth quarter of 2016 as it brought on board the first subscriber to its Group buyer plan.Chief Philip Letts commented: "Blur's board and management team will remain focused on cost and cash control. We will also seek to capitalise on the growing market momentum, by widely demonstrating how blur's platform delivers a unique solution to Indirect spend for organisations."We look forward to further platform subscriptions and Enterprise roll outs as blur progresses on its path to profitability."The indirect spend management platform saw operating profits, costs and cash-burn all improve in the latest reporting period.Blur attributed the fifth consecutive quarter of improvement in earnings before interest, taxes, depreciation and amortisation to its focus on larger, Enterprise accounts.Thus, over those three months Blur completed 29 enterprise orders out of the 87 on which it pitched, up from six and eight in the third quarter, respectively.In parallel, operating costs came down by 10.0% or 43.0% in comparison to the year-ago period.Fiscal year 2016 EBITDA was seen coming in above forecasts, the company added.Cash at period end stood at $2.5m, versus $2.0m in the comparable year ago period, with underlying cash-burn dipping from $1.0m in the third quarter to $0.9m.However, as of the end of the third quarter cash balances were at $3.6m, but were impacted by $1.2m of unrealised foreign exchaneg losses due to the depreciation in Sterling.At constant currencies cash was $3.1m, slightly ahead of forecasts, Blur said in a statement.In particular, Blur hailed its first subscription to its Group buyer plan by a top 100 UK-based law firm."The Company is currently working with this customer on a significant multiple six figure order, the successful completion of which, will bring greater efficiency and improved value to our customer's business," Blur said.In remarks to Digital Look, Blur finance chief Tim Allen said the company was still working on and looking to convert into clients two "much bigger" global household names.His statement and the contract with the Top 100 UK law firm confirmed the guidance provided to Digital Look on 10 October.Allen also sounded a confident note when discussing the company's strategic decision to focus on large enterprise clients.As of 1227 GMT shares in Blur were higher by 10.17% to 8.12p.