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Maistro issued full year results for FY’18 highlighting revenue growth of 154% to £1.5m. Revenue growth was primarily driven by traction with its core customer (Revenues: £0.9m; 2017: £0.0m) fitting with management’s new, targeted ‘land and expand’ strategy. Cash-burn remained stable at £2.1m. During FY’18 the group completed a successful share issue raising £2.1m net of fees; the cash balance stood at £1.1m at year-end, with £0.9m of the raise collected in early 2019. We are encouraged by continued strong growth; however execution remains key, with performance against management’s strategic goals required to unlock value potential.
Maistro
Maistro reported an encouraging FY’17 set of results that show the group is on a much improved trajectory, led by the new Board (appointed in July 2017) and supported by a much stronger balance sheet. Revenues for the group materially increased (164%) in the second half of 2017 compared with the first half of 2017 driven by improved engagement with Enterprise customers particularly in the UK and Eurozone. Adjusted LBITDA reduced 25% to $2.7m with a cash balance at year end of $3.3m following two share placings. The outlook is positive and the group believes it can build on the progress made in H2’17 into 2018 and beyond as Enterprises seek innovation to improve their corporate buying processes.
Blur issued a positive trading update indicating revenue and gross profit making quarter on quarter progress. The group also talked about an increasing rate of repeat business and the addition of significant new customers though usage of the platform builds up over time. With cash balances at 22 Nov 2017 of £2.7m, the group has sufficient working capital to fund its strategy over the next coming years. We continue to believe there is a strong opportunity to provide enterprises with a technology platform that brings efficiency and transparency in the procurement of business services.
blur reported FY 2016 results showing revenue of $0.83m, adjusted LBITDA of $3.6m and year end cash of $2.5m. The group’s transition to an enterprise-only strategy ceased direct marketing activities at the SME market whilst long sales cycles in the enterprise space meant revenues developed slowly. Significant reductions in cost helped to keep the loss in line with expectations and reduce cash burn. On July 7 2017, the group announced a successful placing raising £1.75m (before expenses) and with it, a refresh of the Board. The new Board is currently conducting a review of the business and during this period, we are suspending our forecasts and will re-publish them in due course. We continue to believe there is a highly attractive opportunity for a platform providing automation for the enterprise procurement process, particularly in services. There group continued to make positive progress in 2017 and we await the update from the new Board as to its strategy to best convert the opportunity.
With blur’s cash at 31 May 2017 standing at $1.14m, the group conducted market soundings with new and existing potential cornerstone investors to see if it can secure additional funding. On conclusion of some of these initial discussions, the proposed investment terms included a number of onerous conditions which the board considered to be not in the best interest of shareholders. As such, it is currently evaluating alternative sources of near-term funding, which may or may not be forthcoming within four to six weeks. blur is continuing to execute on its enterprise customer strategy, remains engaged with a number of customers, continues to control costs with Q1 performance in line with expectations; however, it is clear that protecting/shoring up the equity value can only be achieved by securing additional funding.
blur released key metrics for Q2’16 that showed continued reduction in cash burn and operating costs (down to $1.1m in Q2’16) with cash at the end of the period of $4.3m. No. of projects were down sequentially though total value of projects kicked off was broadly flat due to higher average project values. Higher margin revenues grew 75% sequentially, driving a gross profit in the period. Engagement with enterprise customers continues in earnest with the work it is doing with 3 UK-listed organisations highlighted. Predicting timing of when these relationships come to fruition is not straightforward but we remain encouraged by the group’s progress. We believe its enterprise-focused strategy, combined with optimising its cost base, provides a more sustainable growth path.
blur delivered an in-line revenue performance in 2015 and better than expected LBITDA and cash, as the group, led by a re-shaped board and management team, focused on delivering on its enterprise strategy whilst significantly controlling costs and preserving cash. The macroeconomic backdrop appears to be helping in getting enterprises to engage with blur’s proposition to drive efficiencies in their indirect spending, although sales cycles are proving long. blur’s full potential remains dependent on how effectively the group is able to unlock this opportunity; the focus of the last few quarters has been encouraging and helpful.
Blur provided a highly encouraging Q4 quarterly metrics and year end update. Revenues are in line with expectations whilst the EBITDA loss and year end cash position are better than expectations. The group has made significant strides in reducing cash burn even as it continues to execute on its enterprise-focused strategy. In this regard, progress has been equally encouraging with increasing number and proportion of projects from enterprise customers. This is a good update showing progress towards a model that will deliver sustainable growth going forward.
1Spatial (SPA LN) £3m contract win with a global healthcare provider | blur Group (BLUR LN) Revenue in line; EBITDA and cash better | Brewin Dolphin Holdings (BRW LN) +3.8% Q1 FuM growth, record discretionary gross inflows | Cello Group (CLL LN) On-track | Creston (CRE LN) Revenue impacted + costs not flexible enough = Downgrades | Euromoney Institutional Investor (ERM LN) Move to SELL ahead of trading update (28 January) | Futura Medical (FUM LN) Capital Markets Day highlights development and commercial progress | Minds + Machines Group (MMX LN) China update
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As flagged at its FY results in June, CFO Tim Allen has been appointed to the Board. This announcement follows on from the appointment of David Sherriff as Non-Executive Chairman (having been Deputy Chairman and Lead Independent Director) and the appointments of Roger de Peyrecave and Rob Wirszycz as Non-Executive Directors last September. The re-shaped Board should strengthen the group’s focus and execution on its strategy to unlock value through a focus on enterprise customers.
BLUR GROUP PLC (BLUR LN) CFO joins Board | Brewin Dolphin Holdings (BRW LN) Moving to HOLD following performance post-Finals | Domino's Pizza UK & IRL (DOM LN) Germany – short-term fix but mid-long term growth expectations lowered | Ergomed (ERGO LN) Co-development update: clinical data expected in 2016 | Futura Medical (FUM LN) Extended shelf life for CSD500 achieved: regulatory filing imminent | IDOX (IDOX LN) Stable outlook in all markets; £100m sales target | IQE (IQE LN) Full year in line, as expected | Marston's (MARS LN) Solid double-digit TSR proposition | N Brown Group (BWNG LN) Risk from unseasonably warm weather reflected in downgrade | Skyepharma (SKP LN) Positive development with EXPAREL®
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Blur’s Q3 update showed a growing proportion of enterprise projects pitching on, kicking off and completing on the platform. It has also started to generate revenues from newly introduced premium, higher margin services. These are promising indicators – in the meantime, costs are coming down and there is a clear commitment to reducing losses and preserving cash. Over the next few months, it is critical the group shows it is on track to deliver an enterprise-focused model that will deliver sustainable growth going forward. This will be the key to unlock its potential. We re-introduce estimates in 2015 and 2016 and forecast cash of $2.2m by end 2016.
Blur’s Q3 update shows a growing proportion of enterprise projects pitching on, kicking off and completing on the platform. It is also starting to generate revenues from newly introduced premium, higher margin services. These are promising indicators – in the meantime, costs continue to come down and there is a clear commitment to reducing losses and preserving cash ($8.8 at the end of Q3’15). Delivering an enterprise-focused model will be key in delivering sustainable growth going forward and unlocking potential.
Blur’s interim results show the transition the group is making to a more enterprise- focussed model in order to drive higher quality revenue streams going forward and provide a lower risk path to profitability. EBITDA losses of $4.2m reduced from $5.5m in the previous year with more actions taken post period to further align its cost base to its refined strategy. Cash at 30 June 2015 stood at $12.4m. Blur has invested significantly in the development of a technology platform and its community of service providers in order to provide a marketplace for enterprise customers and the challenge is to successfully generate return on these investments. There remain execution risks but the strengthened Board and management team have a clear, refocused strategy to pursue.
Blur reported its FY results today, which showed underlying growth in revenues and gross margin but reflecting a number of changes resulting from its ongoing discussions with the Finance Reporting Council (FRC). Operationally, the group continues to focus on repeat projects from a growing enterprise customer base which should increasingly provide it with a higher quality income stream and more reliable revenues. Cash on the balance sheet stood at $17.4m at the end of Dec 2014 and currently stand at $12.2m. The group is containing the cost base with cash burn currently running at $0.6m per month and expected to fall as it increases its productivity through technology and process automation. The group indicated it deems its cash resources sufficient to execute on its strategy. The group also announced the appointment of new CFO, Tim Allen who is expected to join the board by year end.
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