System1 Approach Drives BrainJuicer Growth

Brand strategy and insight agency BrainJuicer has reported a 24% rise in revenue to £31.24m for the twelve months of 2016, compared with £25.18m in 2015. The firm says this growth - equivalent to 15 percent on a constant currency basis, is 'testament to the strength of its System1 approach'.

In the unaudited financial results, BrainJuicer said gross profit also increased 15% at constant currencies. The return to double digit revenue growth followed two flat years, during which time the firm's Juice Generation qualitative business and Behavioural Consultancy services were being 'de-emphasised'. Gross profit for the Ad Testing and Brand Tracking products increased by 81%, and represented 39% of the business over the year. For the firm's innovation services - Predictive Markets and Concept Testing - gross profit rose by 18%.

Looking at world regions, gross profit in the US grew 40% (22% in constant currency terms) - this is now the firm's largest market. Gross profit rose 64% (44% on a constant currency basis) in Continental Europe; 12% (4% in constant currency terms) in the Brazilian business; and 16% (3% in constant currency) in the Singapore and China region. In the UK (BrainJuicer's second largest market), gross profit fell by 7% due to 'sharp declines' in business with two large clients; and the company has also shut down its Indian operation, due to 'lack of scale, small project sizes inherent in that market, and bigger opportunities identified in other markets'.

Overall for the group, gross profit was up 27% to £25.64m, from £20.25m in 2015; profit before tax rose 38% to £6.20m (2015: £4.50m), and profit after tax was up 31% to £3.97m (2015: £3.03m). Commenting on the results, founder and CEO John Kearon (pictured) stated: 'Our double-digit growth is testament to the strength of our pioneering System 1 research methods and the hard work of a fantastic team. We were delighted with the successful launch of our advertising agency, System1 and are looking forward to further growth in our core-four research products in the year to come'.

Web site: www.brainjuicer.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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