The new board of blur Group PLC (LON:BLUR) is performing a strategic review and will use recently raised funds to implement a new growth plan.
The company released full-year results the day after trading resumed in the shares, showing losses narrowed dramatically in 2016.
The adjusted loss before interest, tax, depreciation and amortisation (LBITDA) was US$3.56mln, compared to LBITDA in 2015 of US$8.89mln.
Project revenue from the group’s indirect spend management platform fell by almost two-thirds to US$720,000 from US$1.95mln, reflecting delays in converting projects in the pipeline to live projects.
Blur said sales cycles remain long, but has previously indicated this was to be expected with the change in emphasis to targeting larger enterprises, where the lead times are typically longer.
“While sales cycles remain elongated, we are seeing signs that these may shorten as procurement functions innovate and focus more around their indirect spend challenges,” said chief executive officer (CEO), Philip Letts.
Blur noted that higher quality projects from enterprise customers is driving a reduction in cancellation fees and improved cash collection.
Cash burn reduced throughout 2016 while cost control improved. The company ended the year with US$2.5mln in cash, compared to US$7.1mln at the end of 2015; it has since topped up its coffers with a £1.75mln funding round as it seeks to overhaul the business model.
READ blur raises £1.75mln as it looks to reboot; major backer ups his stake once again
“Progress has been significant in product development and in building the pipeline of opportunities, the task ahead is to convert the pipeline and create reference customers willing to attest to the benefits of the blur platform,” said David Rowe, who joined as chairman in the middle of last month.
CEO Letts said the company saw further progress in the first quarter of 2017 with its enterprise customer base.
“Among other opportunities, we are working with a top 100 law firm on their document management and digital archiving facility, a multi-brand, European household appliance company on their marketing needs and a global electronics brand,” Letts revealed.
Meanwhile, the company’s development team is grafting away on blur 7.0, which will deliver more of the features and functionality blur's customers and opportunities have identified as important to them.