Investment summary

BrainJuicer’s normal seasonality makes Q4 trading crucial to delivering market expectations. Today’s trading update confirms another good Q4 performance, driven by strong progress in the key US market and our forecasts remain unchanged. The group generates good cash flows and the £3.6m cash at the year end (with no debt) allows for continuing investment in growing out the geographical exposure. Management’s record of delivering innovative solutions generating growth well ahead of the sector justifies the premium rating.

Last updated on 19/01/2012

Industry outlook

Forecasts for overall ad spend have been trimmed, but the largest buyers of MR, FMCG groups, still require large volumes of genuine insight about their brands, products and markets, increasingly on a global basis. The industry broadly divides between large integrated providers (mostly quant-based) and smaller, innovative providers (often qual-based). The need for economies of scale in the former was clearly demonstrated by Ipsos's purchase of Synovate.

Last updated on 09/12/2011