Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors
Why invest in BLUR?
Blur Group PLC: THE INVESTMENT CASE

Blur Group says "current trend is promising"

The group has been guilty of over-promising in the past, but with a stronger balance sheet it might now have a shot at achieving critical mass before money starts to get tight again
Reboot button
INVESTMENT OVERVIEW: BLUR The Big Picture
The fallen stock market star is starting to repair its reputation

Blur Group PLC’s (LON:BLUR) reboot has started well, with the group seeing quarter-on-quarter improvements in gross profit and revenue.

The e-commerce enabler raised a much-needed £1.75mln from investors in July, which will give its proposed new-look board the financial muscle to take it forward and “optimise the business”.

READ: Blur Group encouraged by repeat business and new customer wins

Major backer Robert Keith, a former director at software group Eidos (the ‘Championship Manager’ people) and a big stakeholder in drug developer Silence Therapeutics PLC (LON:SLN), used the placing to increase his stake in the e-commerce enabler.

He subscribed for 30mln shares to take his overall stake in blur to approximately 25%, the company revealed on Friday afternoon.

blur had been in discussions with potential investors for a few weeks now in a bid to shore up its balance sheet.

Strengthened balance sheet and new board

The group’s cash balance as at November 22 was £2.71mln, giving a reshaped board the firepower to put into place plans that are primarily focused on generating new enterprise customers from the current pipeline over the next year or so.

Part of the new strategy is to maximise efficiencies within the group and the company is targeting a reduction in management team and board salaries, as well as exploring the possibility of better value office spaces.

The company has a new chairman, David Rowe, while Preeti Mardia, Richard Rae and Richard Croft were brought in as non-execs. Between them, they’ve agreed to stump up £300,000 as part of the placing, with Rowe accounting for half of that (£150,000).

In early August, company founder Philip Letts ceased to be the chief executive, with former chief commercial officer Laurence Cook taking over the reins.

His pedigree looks good: he has 25 years' experience in the information and communication technology industry, having led global sales teams at industry giants Siemens, Cable & Wireless and NTL.

His task is to ensure blur starts fulfilling the potential investors saw in the company when it was a stock market star in 2013, when the share price rose from around 78p to 577p.

‘Promised a lot but delivered very little’

“blur has promised a lot but is yet to deliver to shareholders,” admitted Rowe.

 “Its core proposition of applying automation to the enterprise procurement process has a number of strong prospects in the pipeline.

“The task of the restructured board is to ensure that the company has the right approach and support to convert these prospects into reference customers in the next 12 months and build on its AI [artificial intelligence] capabilities.

A brief trading update issued in November revealed management expects the fourth quarter to see another quarter-on-quarter improvement.

"I have been encouraged by the increasing rate of repeat business we are getting from existing customers and the addition of significant new customers,” said Laurence Cook.

“Although there is usually a lead time between the signing of a new customer and subsequently the building of momentum on the platform, the current trend is promising. It is reassuring that we now have sufficient resources to develop the business further over the next few years," he added.

View full BLUR profile View Profile

Blur Group PLC Timeline

Related Articles

Care home worker and elderly person
August 16 2017
cloudBuy is focusing on big projects such as a web site that could revolutionise how personal health budgets are spent, and its collaboration with Asian bank UOB
picture of apps
November 22 2017
Going live with its app distribution platform was a landmark move for recent AIM listee appscatter
risk-management.jpg
October 25 2017
The top line was driven primarily by the strong growth of the company's Risk Management and Trading Software Division

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use