BrainJuicer performs 'strongly' after two years of 'modest' growth

20th Jan 2017 08:00

(ShareCast News) - Marketing firm BrainJuicer said that it performed "strongly" during 2016 after two years of "modest" growth, as profit increased.For the 2016 calendar year, gross profit jumped 27%, or 15% excluding impact of exchange rates, to about £25.6m, from the previous year, due to the US business and "encouraging" recovery in continental Europe.Pre-tax profit is expected to increase 37% to about £6.2m, after a share-based payments charge of £500,000.Gross profit from the advertising testing and brand tracking services rose by around 80%, and represents around 39% of the company's total gross profit, compared with 27% in 2015.Cost increases were held well below the rate of gross margin growth, despite the company paying a higher bonus payments, compared with a "negligible payout" in 2015.Over the year £5.2m was returned to shareholders through ordinary and special dividends and share buy-backs, and ended 2016 with a cash balance of £7.8m, equivalent to 63p per share, which was higher than the £6.4m in 2015.The company is changing its financial year end date from 31 December to 31 March, so results for 2016, which will be published on 9 February, will be followed by audited results for the 15 months to 31 March 2017, which will be posted in June.Shares in BrainJuicer were up 10.92% to 660p at 0826 GMT.