Blur (#BLUR) horrid profits warning, now being investigated by FRC - POS stock
- 2015-04-09 23:19:14
UK 17:53 Monday, 26 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Shares in provider of an online platform for the provision of services, blur Group (BLUR) have now declined to sub 50p - having been circa 730p a year ago. The following reviews post a trading update last week and now an update from Edison Investment Research.
Provider of an online platform for the provision of services, blur Group (BLUR) has updated that it expects to meet market consensus forecasts for the 2014 calendar year and “continues on its previously announced and planned path towards EBITDA breakeven in Q4 2015 and positive cash flow from Q1 2016”. Sounds good - until factoring in that forecasts were reduced sharply as recently as November when the company admitted that “a small number of large projects, which have been submitted to the exchange, will not kick off until early 2015, which will impact the group's revenue and therefore profitability for the full year ending 31 December 2014”. The following updates on a company which looks to be attempting presentational sleight of hand yet again.
Following a further revenue and profit warning from blur Group (BLUR) last week I updated that there may eventually be some consistent delivery of expectations, but the recent track record suggests continued caution and, whilst a focus on spin rather than just simply explaining the operational reality remains, this is a share I wouldn’t be comfortable holding anyway. The following reviews a rather more bullish research update.
“Currently in line with management expectations in respect of new project bookings, ahead of plan for new and repeat enterprise projects, and ahead of its plan on costs”. Sounds good. “The group has cash resources of $20m to comfortably sustain it through to profitability and cash flow positive”. Still sounding good. “Whilst revenue growth has been strong, a small number of large projects, which have been submitted to the exchange, will not kick off until early 2015, which will impact the group's revenue and therefore profitability for the full year ending 31 December 2014”. Oh!
blur Group (BLUR) has emphasised that, through its online ‘global services exchange’ platform, “in a year, we have quadrupled our revenue, trebled our bookings, completed a successful fundraising, kept our costs and headcount controls in line with our plan, and grown customer success through a 170% value increase from repeat customers”. All seemingly very positive, but what is the reality of the financials?
Since my previous update on blur Group (BLUR), the shares have slipped further – to a current 75p. Having at one stage early this year reached almost 800p, some see value at current levels. But is this illusory?
AIM Listed blur Group (BLUR), the company whose RNS announcements used to declare that it was “reinventing commerce at blurgroup.com” but now a touch less grandiosely state that it “operates the market leading, cloud-based platform for s-commerce”, has updated that “project bookings for the first half of 2014 have increased by more than 200% year-on-year to $16.04m (H1 2013: $5.2m)”. The following reviews with the shares having nudged a couple of percent higher to 79.5p on the "trading update", with reporting woes earlier this year having brought them down from at one stage approaching 800p.
An FD of an AIM listed company has passed me the following email entitled “Accounting services all above board” sent by Dorothy from blur Group (BLUR). My mind is boggling does this company do irony. Followers of Blur will remember that within the past three months it has been forced to admit that its revenue recognition policies were all over the shop and to stage a rescue bailout.
Shares in business services marketplace operator in the ‘cloud’, blur Group plc (BLUR) are currently little changed at around 90p on the back of the results of a fundraising, which saw the company’s CEO Philip Letts “delighted by the broad support shown by so many of our shareholders… including members of the board”. But should delight also be felt by other shareholders here?
Post a latest share price crash on its announcing of a fundraising and delayed results for the 2013 calendar year last month, shares in online business services marketplace provider blur Group (BLUR) have recovered somewhat following an upbeat note from its house broker, N+1 Singer, and some director share buying. Should you follow them? Er....
blur (BLUR) has been bailed out by a hugely discounted fund raise today at just 75p. Existing investors face 37% dilution but even assuming the maximum $20 million is raised this dog with fleas is not out of the woods yet as the note just out from the broker that organised this placing (N+1 Singer) makes painfully clear.
Shares in online business services marketplace provider blur Group (BLUR) currently trade 22% lower today, at 82p, following its announcement of a fundraising and delayed results for the 2013 calendar year. With Ben Turney already having reviewed the former HERE, I now take a look at the results.
Shareholders in Blur group (BLUR) woke up to a nasty shock this morning. 37% of the company has been sold in a placement, at 75p a share. It is staggering to think that Blur Group peaked at 820p, only four months ago. Reminiscent of the DotCom collapse, fourteen years ago, these sort of wipeouts just shouldn't happen. But when people get sucked into rampant, speculative hype and good old fashioned valuation methods get thrown out of the window, is it any surprise that so many get scorched fingers?
Shares in the AIM company which grandiosely describes itself as reinventing how businesses do commerce, blur Group plc (BLUR), slumped another 44% yesterday to 155p as it served up a second disappointing trading statement within a month. Time to change the name, while continuing the pop theme, from blur to 'The Damned'?
No not the pop group, but the AIM listed tech stock whose shares have already collapsed by 50% after certain issues with revenue recognition came to light.
