BrainJuicer Confirms Profit Surge

Online specialist BrainJuicer has reported results for the 12 months ended 31 December 2011, confirming 27% revenue growth to £20.71m and profit after tax up 25% to £1.85m.

The revenue jump is slightly higher than suggested in the firm's preliminary statement in January.

During the period, gross profit increased 27% to £16.06m (2010: £12.62m), and operating profit climbed 24% to £2.75m (2010: £2.21m), although operating profit margin slipping a little, to 13% from 14% in 2010.

The UK business, which generated 42% of revenues, grew by 11% following 42% growth in 2010, and maintained its operating profit margin. 'Strong growth' was reported in the US, where revenue was up 42% and operating profit margin (before allocation of central overheads) rose to 45% from 38% in 2010. During the year, the firm opened a fourth US office in Atlanta, Georgia.

In Switzerland the firm grew revenue by 57% to £2.21m, and in Germany by 126% to £1.75m, with operating profit margins above 50% in both.

However, in the Netherlands, the business declined by 29%, following a 12% drop in 2010, described as 'disappointing'.

China and Brazil, the firm's two newest markets, made 'an encouraging start', generating £297k and £450k of revenue respectively in their first full year of operation.

For the company as a whole, average headcount increased to 124 from 91 in 2010, and has almost trebled in the last four years. The firm says it is supporting its staff with 'increasing levels of training and development' and has set up the BrainJuicer Academy with a programme to ensure a 'consistent level of attainment and capability'.

Commenting on the company's results, founder and Chief Juicer John Kearon (pictured) said: 'We are pleased to report another period of strong organic growth. We have grown consistently every year since floating in 2006, our financial position is strong and the potential for future growth remains significant. Our revenue visibility is, as ever, limited but we are confident that the company will make further progress in 2012.'

During 2011, Unilever Ventures, which first invested in BrainJuicer in 2003, sold its remaining 14.1% holding, and Mark Muth, Unilever Venture's representative on BrainJuicer's Board of Directors, intends to resign the position in April this year.

Last year, the firm was named 'Market Research Agency of the Year' by Marketing magazine.

Web site: www.brainjuicer.com .