BrainJuicer mulls special dividend as growth returns in H1

11th Jul 2013 12:12

Online market researcher BrainJuicer has returned to growth in the first half of the year thanks to strong growth in the UK and US. In a trading update the Aim-quoted company reported sales were up 4.0% and gross profits 6.0% in the six months to June 30th after both being flat the previous full year. Despite having limited revenue visibility, the board believed BrainJuicer should meet market profit expectations for 2013. The agency, which uses behavioural science methods to create innovative new market research techniques, said revenue grew strongly in its two biggest markets, the UK and the US and in one of our newer markets, Brazil, but declined in Continental Europe and China. Measure taken in late 2012 to reduce cost growth and lower overheads have taken effect and for the year as a whole the board said it continued to project cost growth in low single digits, before bonus payments are included.BrainJuicer said its financial position and cash generation remained strong, with cash in the coffers having increased 44% to £5.5m since end-December. As the company has no debt, management are considering whether and how to return of some of this cash to shareholders.Analyst Simon Davies at broker Canaccord Genuity said he expected clarity on the quantum and mechanism of any return at the time of its interims, due on September 20th."We see this as a particularly strong message for shareholders, given a business which is capital-light and can fund substantial growth from its free cash flows, with scope to return surplus cash to investors."Overall, he expected to see BrainJuicer increase investment in the business in the second half, as it looks to ratchet up growth rates, and sees upward pressure on forecasts.Shares in BrainJuicer were up 4.3% to 257p by London close on Thursday.OH