BrainJuicer Group PLC

("BrainJuicer" or "the Company")

Interim Results for the Six Months ended 30 June 2008

Reported under IFRS

BrainJuicer Group PLC (AIM: BJU), a leading international online market research agency, today announces its Interim Results for the six months ended 30 June 2008.

Highlights

Commenting on the results, John Kearon, Chief Executive of BrainJuicer Group PLC, said: "During 2008 we have continued to build our business, focusing on our innovation, technology and provision of commercially valuable Insights to our clients. The Board has been pleased with the Company's progress so far this year. We have had another period of strong organic growth, a significantly increased list of satisfied blue-chip clients, and a broadening strategic geographic footprint. 

"To support BrainJuicer's underlying growth, we are continuing to invest. Our team has increased from 48 at the end of 2007, to 64 at 30 June 2008, 58% of which are client facing. The Company's innovative, new products are gaining traction, and now comprise 46% of turnover, demonstrating the continued success of our BrainJuicer Labs innovation programme. We are pleased to be announcing our maiden interim dividend, which reflects the Company's success during the period, and are excited about the Company's future prospects as we expand geographically, continue to innovate, and build profitable relationships with the world's largest buyers of market research."

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  Chief Executive Officer's Statement

Introduction

The Board is pleased to report that the Company has continued to make good progress during the period, with strong organic growth so far in 2008.  The Company has not suffered from  any softening in the market, and is well placed to capitalise on the industry's continued shift  from offline to online market research.  We continue to place significant emphasis on  product  innovation, technology development and the provision of commercially valuable insightsto  many of  the world's biggest buyers of market research.  

Financial Performance

Revenue for the half-year increased by 37% to £3,970,000 (2007: £2,901,000), with gross margin continuing at levels of over 70%.  Operating costs increased from £2,021,000 in the first half of 2007 to £2,801,000 this year as the Company continued to build its team.  Headcount increased from 48 at the end of 2007 to 64 at the end of June 2008. This increase is predominantly in client facing roles, and positions the business for further significant top-line growth.

Operating profit rose from £147,000 in the first half of 2007 to £196,000 this year (an increase of 33%), and profit after taxation rose from £113,000 to £161,000 (up 42%).   Earnings per share increased from 0.9p in the first half of 2007 to 1.3p, and fully diluted earnings  per share increased from 0.9p to 1.2p.

The Company generated £579,000 cash from its operations and invested £304,000 on capital  expenditure (predominantly IT equipment and its software technology platform). It ended the period with a cash balance of £2,128,000, up from £1,875,000 at 31 December 2007. The Company has no debt.

The Board has decided that the Company is in a position to begin paying dividends, and intends to pay an interim dividend of 0.5p per share.  The Company is aiming to maintain a progressive dividend policy.  The board has further decided that, given the Company's strong balance sheet  and cash generation it is able to return an additional amount to shareholders at this time. It therefore plans on making a special, one-off, dividend payment of 1.7p per share.  The total of the  interim dividend and the special dividend is a payment of 2.2p per share.  The payments will be  made on 14 October 2008 to shareholders on the register on 19 September 2008 (the record date). The ex-dividend date will be 17 September 2008.

Operations

The Company continued to grow its core UK business profitably, with revenue growth of 43%,  serving a broad spread of multinational and blue-chip domestic clients from its well established London-based account management team.

The Company has also broadened its geographic reach. In Continental Europe, the Company has supplemented its Dutch position with a move into Switzerland, where a high number of  global companies have their European head offices.  The Dutch office experienced a small decline in revenue due to the cyclical spending patterns of the Company's largest Dutch client.

The Company's US position is establishing itself well. This is the most competitive research  market in the world, yet our US business grew very strongly with revenue up 246%, from a well-balanced mix of new and existing clients.  BrainJuicer is pleased to be making significant inroads into very large companies in this territory and has succeeded in differentiating itself within a crowded market, with its distinctive products. 

Further afield, the Company has also entered the Australian market via a licence arrangement with a long established Melbourne based agency (Slater Marketing).  The Company may acquire Slater subject to certain performance conditions.

Innovation

The Company's main focus, and its core strength, is in innovation, particularly in developing  research techniques which address the difficult and highly strategic early phases of clients' product development cycles.  The Company's four pioneering techniques, Predictive Markets (which won  the ESOMAR Best Methodology award in 2006), CommScanTM (utilising FaceTraceTM,  which won the ESOMAR Best Methodology award in 2007), Insight ValidationTM and Creative 6ersTM, grew by 47% over the first six months of this year compared to the same period last year, and  now comprise 46% of the Company's revenue.

Clients

BrainJuicer's clients are mainly large consumer-facing companies, who are the largest research buyers in the world. The Company is continually striving to deepen its relationships with its existing clients.  It has a team of high level and experienced market research professionals, who above  all else, endeavour to exceed expectations on each and every project they undertake.  Repeat  business is high; during the first half of the year, 72% of revenue was from existing clients, and the average project size increased 10% to £15,881 per project (2007: £14,442).

The Company has also undertaken considerable new business development efforts, and hired an  experienced senior sales and marketing executive, based in the US. During the first half of the year, the Company won business from 32 new significant clients, predominantly in the US, the largest  and most advanced market in which BrainJuicer operates. The Company now has 137 clients, and  serves 19 of the world's 200 largest companies.

Technology

The Company continues to invest in its proprietary technology platform to improve the efficiency in which it delivers its projects. Average revenue per headcount in the period has been maintained after the heavy increase in new staff (£70,893 compared to £70,756 during the same period last year).

Outlook

The Board is confident that the Company has a competitive, simple, and proven model that can continue to be rolled out to strategic geographies, in a profitable, revenue led, low investment  manner, and plans to continue to gain strategic geographic coverage to meet the needs of its multinational client base. Whilst new offices do dilute profit margins initially, the Board believes there is a relatively short pay-back, and the anticipated strategic benefits are significant. The Company's strong position within the market gives the Board confidence in BrainJuicer's ability to deliver  sustainable and profitable growth.

CONDENSED CONSOLIDATED INCOME STATEMENT FOR SIX MONTHS ENDED 30 JUNE 2008

All of the activities of the Group are classed as continuing.  

  CONDENSED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2008

CONDENSED CONSOLIDATED CASH FLOW STATEMENT FOR SIX MONTHS ENDED 
30 JUNE 2008

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 

30 JUNE 2008

BrainJuicer Group plc ("the Company"), a United Kingdom resident, and its subsidiaries (together "the Group") provide on-line market research services. The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange ("AIM").  The address of the Company's registered office is 13-14 Margaret Street, London, W1W 8RN.

The condensed consolidated interim financial information was approved by the board  of directors on 5 September 2008.

The condensed interim financial information for the half year ended 30 June 2008 has been prepared in accordance with IAS 34 'Interim financial reporting'. The interim condensed financial report should be read in conjunction with the annual financial statements for the year ended 31 December 2007.

The condensed consolidated financial information has been prepared under the historical cost convention.

Except as described below, the principal accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 December 2007.

The following accounting policy was adopted during the period.

Financial assets - available-for-sale financial assets

'Available-for-sale' financial assets include all financial assets other than derivatives, loans  and receivables.  They are classified as non-current unless management intend to dispose of  the investment within 12 months of the balance sheet date.

Investments are initially recorded in the balance sheet at fair value plus transaction costs, unless the asset is held for trading, in which case the transaction cost is expensed in the income statement. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the group has transferred  substantially all risks and rewards of ownership. Available-for-sale financial assets are  subsequently carried at fair value.  

The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (or the financial asset is an unlisted security), the Group establishes fair value by reference to other recent comparable arm's length transactions or  other quoted instruments that are substantially the same, and, or, by discounted cash flow analysis.

The group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value - is removed from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity instruments are not reversed through the income statement.

During the period the group acquired an interest of 3.64% in Slater Marketing Pty Limited, an unlisted company incorporated in Australia, for cash consideration of £40,000 plus  transaction costs of £45,000. 

The investment has been classified as an available-for-sale financial asset. Subject to certain performance conditions the group may acquire the remaining equity share  capital of Slater Marketing Pty Limited.

The Group operates in one business segment, that of market research.  Whilst there are a number of products within the business segment, management reporting is principally based on location of service delivery.  Accordingly the Group presents its primary segment analysis on this basis:  

Group costs include directors' remuneration and central costs which are not directly attributable to geographic segments.  

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average of ordinary shares in issue during the period.

Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding to assume conversion of all dilutive potential ordinary shares.  For share options, a calculation is made in order to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options.  The number of shares calculated in this way is compared with the number of shares that would have been issued assuming the exercise of the share options.  

During the period, share options over 25,000 ordinary shares were exercised at an exercise price of 11.4 pence per share. The total proceeds were £2,854, of which £250 was recognised as share capital, and £2,604 as share premium.

On 13 March 2008, 222,635 share options were granted to Directors and employees with an exercise price set at the market price on the date of grant (147.5 pence per share).