TIDMBLUR
RNS Number : 2809W
Blur Group PLC
08 February 2017
08 February 2017
blur Group plc
("blur Group", the "Group" or the "Company")
Q4 2016 Quarterly Business Update
First 12 month subscription to Group buyer plan taken up by Top
100 UK-based law firm
blur Group plc (AIM:BLUR), the market-leading Indirect Spend
Management Platform, today releases key metrics for Q4 2016, a
period that saw the first subscription to blur's subscription based
Group buyer plan together with further improvements to EBITDA,
operating costs and cash burn. FY 2016 EBITDA is expected to be
ahead of expectations.
Q4 2016 highlights:
-- First 12 month subscription to Group buyer plan taken up by a Top 100, UK-based law firm
-- Increased volume of orders placed from Enterprise(*) customers following Q3 seasonal dip
-- Fifth consecutive quarter of improved underlying cash burn -
down by 10% to $0.9 million in Q4 2016, from $1.0 million in Q3
2016 (excluding R&D tax credit and foreign exchange
movements)
-- Cash at the end of Q4 2016, including unrealised foreign
exchange movements, was $2.5 million (GBP2.0 million)
-- Operating costs reduced by 10% compared to Q3 2016 - down by 43% compared to Q4 2015
-- blur 6.0 platform development completed
-- FY 2016 EBITDA expected to be ahead of expectations
ALL ORDERS Q4 2016 Q3 2016
CHANGE
-------------- --------- --------- ----------
No. No. %
-------------- --------- --------- ----------
Pitching On 117 57 +105.3
-------------- --------- --------- ----------
Kicked Off 32 44 -27.3
-------------- --------- --------- ----------
Completed 54 46 +17.4
-------------- --------- --------- ----------
ENTERPRISE ORDERS ONLY* Q4 2016 Q3 2016
CHANGE
-------------------------- --------- --------- ----------
No. No. %
-------------------------- --------- --------- ----------
Pitching On 87 8 +987.5
-------------------------- --------- --------- ----------
Kicked Off 5 2 +150.0
-------------------------- --------- --------- ----------
Completed 29 6 +383.3
-------------------------- --------- --------- ----------
*blur defines the Enterprise as a business with 50 or more
employees
During Q4 2016, blur saw the first subscription to its 12 month
Group buyer plan. Purchase of this plan provides blur's customer, a
Top 100 UK law firm, with access to blur's Marketplace of over
65,000 vetted suppliers.
blur saw an increase in volume of Enterprise orders Pitching On
following the summer's seasonal slow down and Brexit-driven decline
in Q3 2016. While the average value of these orders remains
relatively low, blur's management view this increased volume,
alongside the take up of the Group buyer plan, as evidence of early
momentum in our Enterprise market, that we expect to develop
through 2017 and beyond.
We continue to focus on platform sales to large Enterprises that
include:
Top 100 UK-based law firm; In Q4, blur saw the first
subscription to a Group buyer plan from this new customer. This one
year subscription allows the customer to transact an annual spend
value of up to $2 million through blur's platform. 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.
UK listed enterprise, aerospace engineering; As reported in
blur's Q3 2016 business update, the roadmap with this customer
conforms to the Group's expectation of long sales cycles when
working with Enterprise clients. blur remains engaged with this
Group and continues to work towards a 2017 roll out of blur's
platform addressing both Goods and Services across all Indirect
spend categories.
Global enterprise, sportswear retailer; blur continues to work
with this corporation on an initial pilot due to launch in 2017.
Initially operating in one trial geography, blur is seeking to
complete a pilot phase which, if successful, could lead to a wider
global rollout. Again, the sales cycle is consistent with a large
Enterprise platform sale.
Global enterprise, electronics/technology; blur continues to
work closely with senior management at this Group, aiming to
successfully conclude the pilot phase which could lead to a wider
roll out of blur's platform.
In addition, blur completed the development in Q4 2016 of its
6.0 platform. Key features of blur 6.0 include:
-- Goods added to the platform giving blur's customers a
comprehensive Indirect Spend Management platform
-- Features to exceed Enterprise customer expectations including:
-- Multi-user account management
-- Enhanced reporting
Enhanced automation of supplier shortlisting and selection via
blurSense(TM)
Financial update
For the fifth consecutive quarter, blur has seen its focus on
larger, Enterprise accounts drive improvements to EBITDA, operating
costs and cash.
The Group's cash balance at the end of Q4 2016 totalled $2.5
million (GBP2.0 million) compared to $3.6 million at the end of Q3
2016.
blur's reported cash balance was impacted by $1.2 million of
unrealised exchange losses in 2016 and $0.2 million of unrealised
exchange losses in Q4 2016, as the valuation of blur's cash
balances were further affected by the decline in the GBP:USD
exchange rate.
On a constant currency basis for 2016, cash (predominately held
in GBP) would be valued at $3.1 million at the end of Q4 2016. This
is slightly ahead of analyst forecasts.
Excluding these exchange movements, the cash burn for the
quarter was $0.9 million, down from $1.0m in Q3 2016.
blur's operating efficiency improved again, driven by further
process improvements in the blur 6.0 platform. These resulted in a
reduction in operating expenses of 10% in Q4, compared to Q3 2016
and by 43% compared to Q4 2015.
Philip Letts, blur Group CEO, commented:
"We're delighted to announce the first Enterprise to subscribe
to our Group buyer plan. This 12 month subscription plan gives our
customers access to over 65,000 high quality, vetted suppliers of
both Goods and Services and delivers the ability for them to
transact up to $2 million of purchases annually through our
platform.
"blur is now working closely with this new customer; initially
on a large, multiple six figure order where we are seeking to
transform a critical component of their business.
"While this deal has been several months in the making, this
subscription is a key milestone for blur as we see a significant
Corporate working with blur to transform its Indirect spend through
adoption of our platform.
"We continue to see evidence that the wider market is bringing
greater focus to the Indirect spend problem. This is demonstrated
by the marked increase in volumes of Enterprise orders placed with
blur in Q4 and the take up of our Buyer plan subscription by a
potentially significant customer. We believe this marks the start
of increasing Enterprise volumes for blur, throughout 2017 and
beyond.
"We continue to engage with targeted prospects, seeking out
corporates and public bodies that have recognised the level of
waste and potential fraud in their organisations.
"I'm also pleased to record the fifth consecutive quarter of
EBITDA, cost and cash burn improvement. When we transformed blur's
strategy in 2015 we anticipated significant efficiency gains in our
business. Those gains have been delivered.
"blur's board and management team will remain focussed 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.
"Finally, I would like to thank Richard Bourne-Arton for his
service to blur. Richard leaves our board as of 31 January 2017
after over five years with the Group. Following the strengthening
of blur's board in 2015, Richard's continued support to the Group
has been invaluable."
This announcement contains inside information.
For further information, please contact:
blur Group plc
investors@blurgroup.com
Tim Allen Tel: +44 (0) 1392 927 618
Shaun Dobson/James White N+1 Singer
Tel: +44 (0) 20 7496 3000
Alistair de Kare-Silver/Felicity Winkles
Yellow Jersey PR
Tel: +44 (0) 7825 916 715
About blur Group plc at blurgroup.com
Since 2010, blur Group has been helping enterprises worldwide
eliminate waste and inefficiency in their indirect procurement
process through its market leading Indirect Spend Platform &
Marketplace. To date over 65,000 businesses, including companies
like, Tesco, Danone, Trinity Mirror, and PwC, have used blur's
platform to either buy or sell goods and services online submitting
over $500m of requirements to blur Group's platform.
blur Group is a public company listed on the London Stock
Exchange's AIM market (BLUR) and is headquartered in the UK with
regional sales offices in the US and Europe.
The company news service from the London Stock Exchange
END
UPDGMGGZLNDGNZM
(END) Dow Jones Newswires
February 08, 2017 02:00 ET (07:00 GMT)
Maistro (LSE:MAIS)
Historical Stock Chart
From Apr 2024 to May 2024
Maistro (LSE:MAIS)
Historical Stock Chart
From May 2023 to May 2024