BrainJuicer Group PLC (AIM: BJU)

("BrainJuicer", or "the Company")

Six month Trading Update

BrainJuicer, the innovative international market research agency, today releases the following six month ("H1") trading update.  The Company will announce its interim results for the six months to 30 June 2016 on 16 September 2016.

Top line growth during H1 was generally encouraging.  Revenue increased by 13%, and by 9% in constant currencies, and gross profit (our main top-line performance indicator) grew by 15%, and 11% in constant currencies.  Our largest market, the US, performed strongly, with gross profit rising by some 27%; gross profit in Continental Europe and Brazil also grew well, increasing by 30% and 22% respectively.  Gross profit in our second largest market, the UK, declined by 2%, and in our China and Singapore region it also declined slightly by 5%.

Our Ad Testing and Brand Tracking services continued to grow strongly, with gross profit up 59% year on year.  Much of this business is Ongoing in nature (as opposed to Ad Hoc), and builds on the "Fame, Feeling & Fluency" approach to brand building that we introduced last year.

After factoring in our new creative agency, System1, which was launched during H1 and, as anticipated, incurred costs of some £0.3m, BrainJuicer's operating profit increased by some 41% to around £1.7m.  After adjusting for exceptional items (share based payments and also the one-off costs in H1 2015 relating to due diligence work and our Head Office move) normalized H1 pre-tax profit will be similar to the £1.7m reported in 2015.

BrainJuicer's financial position remains strong.  At the end of June the Company had a cash balance of £5.2m (December 2015: £6.4m), after returning £2.2m to shareholders during H1 by way of dividends and share buy-backs.

The Company generates the majority of its annual profit in the second half of the year, and whilst our revenue visibility is, as ever, limited the Board believes that the Company is in a position to meet market expectations for the full year.

The decline in the value of sterling versus the US Dollar, the Euro and other leading currencies following the referendum on the UK's membership of the EU benefits the Company's non-UK profits reported in sterling.  The results of our overseas businesses are translated into sterling using monthly average exchange rates.  Beyond this, it is too early to say what the impact of the UK's exit from the EU on the market research budgets of our clients is likely to be.

This announcement contains inside information.  The Company can be found at www.brainjuicer.com.

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