Results video with CEO Ray Anderson and CFO Carolyn Rand.
End User Spend (EUS) +111% to £465m
Revenues +64% to £4.3m = 0.93%
So Revenue/EUS margin is £4.3m/£465m, = 0.9%, down from 1.2% last year
Quite a percentage drop.
Are they chasing lower margin business or are their existing contracts experiencing margin deflation?
A bit of both I think Howard.
One thing they did say a while back was that they were lowering margins on the transactions business as transactions allow then to acquire data to feed their, earlier stage, data analytics business.
I remain far from convinced but I can see the rationale for that.
The overall metrics are discouraging. £BGO is a serial loss maker. Simon Thompson, in this weeks IC, recommends buying £BGO as he thinks their revenue will increase to £20M and profits to £10M in two years time. At best the scenario is jam tomorrow. Lots of hype and seductive ideas but no substance yet. Not for me I'm afraid.
