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UPDATE - blur attracting more blue-chip customers

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The transition to serving bigger customers has presented challenges to e-commerce leader blur (LON:BLUR) but it looks to be paying off.

The company told investors it is continuing to gain new business from enterprise customers, with retailers Argos and Tesco the latest blue-chip companies to kick off projects via the blur 4.0 business services platform.

The retailers joined other big name customers making use of the crowd-sourcing model via blur's platform, such as Regus, Danone and Amazon.

The Exeter-based company also revealed a products innovation company has started two new development projects worth in excess of US$500,000, further demonstrating blur's capability for handling large value projects.

"There is a lot of excitement at blur right now as we see the uptake of the platform increasing with bigger blue chip companies becoming a regular occurrence," said Stephen Harvey, the group's chief financial officer.

"New customers, new large value projects and new partners all confirm that buying services online leads to doing business better," he proclaimed.

Broker N+1 Singer believes that mid-sized projects from blue-chip customers are providing to be the sweet spot for the group.

The automation and analytics provided by the platform handle these types of projects well and the blue-chip backing means it is highly likely there will be many more projects to come through if the experience is good – which it almost invariably is, blur’s house broker said.

All businesses seem to be after recurring revenue these days and blur is no different, N+1 Singer asserts, adding that repeat projects tend to be “light touch and highly profitable”.

“We remain confident about the group’s prospects and believe it remains on track to deliver against market expectations. We expect the group to deliver very strong revenue growth, driven by continued momentum and a proportion of revenue being recognised from earlier period bookings,” N+1 Singer said.

Based on the broker’s forecasts, blur should move to profitability within two year and N+1 Singer maintains there are very few companies in the market that have the potential to grow as much as blur as the services-commerce pioneer “harnesses the positive network effects of its platform”.

Shares were up 10.2% at 73.8p in lunch-time trading.

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AIM:MAIS
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