source purchase manage deliver marketplace the enterprise ...€¦ · approx 30% increase in direct...

blurgroup.com © 2016 blur Group PLC 1

3rd/4th May 2016

blur Group Plc

The Enterprise Services PlatformSource Purchase Manage Deliver Marketplace

blurgroup.com © 2016 blur Group PLC

Agenda

● 2015 Financial highlights

● Q1 2016 update

● Enterprise Customers

○ Quantifying unmanaged spend for the Enterprise

○ Enterprise Customer profile and Roll Out

● Enterprise Case Study - Newcastle-under-Lyme Borough Council

● blur 5.0 The Enterprise Services Platform

● blur 6.0 Enhancing the Enterprise Feature Set

● Summary

● Appendices

2


● Financial Reporting Council enquiry closed

● All contingent projects excluded. Robust, consistent revenue recognition, processes and policies

● Listing fee income phased out, Single User Access Fees & Cancellation Fees introduced

● First revenues from Premium Services in H2 2015

● Administrative costs reduce as efficiency improves

3

2015 Financial highlights


Measure 2015 2014Year on

Year

Project revenue $2.0m $2.6m (25%)

Cancellation (ex Listing) fees

$0.6m $2.1m (70%)

Other revenue $0.1m $0.0m N/A

Gross profit $0.3m $1.7m (82%)

LBITDA 1 $(8.9)m $(9.0)m (1%)

1 LBITDA is loss before interest, tax, depreciation and amortization, foreign exchange movements

and share option costs

Measure 2015 2014Year on

Year

Intangible assets (NBV) $2.7m $2.3m 20%

Cash balance $7.1m $17.4m (59%)

Trade and other receivables $0.8m $1.7m (52%)

Total Current Assets $8.9m $19.9m (55%)

Total Assets $11.7m $22.3m (48%)

Current Liabilities $1.8m $2.0m (14%)

Net Assets $10.0m $20.3m (51%)

● LBITDA improved by 1% compared to 2014

● Q4 2015 LBITDA improved by 40% compared to Q3 2015

● Cash burn reduced in Q4 2015 by 58% compared to Q3 2015

● Platform investment totals $4.0M. Significant investment in acquisition of supplier base

● $22.5M carried forward tax losses



● H2 2015 change in project revenue largely offset by new, higher margin revenues

● Approx 30% increase in Direct margins (before staff costs) H2 vs. H1

● Actions which altered revenue profile:

○ SME to Enterprise transition completed○ Acquisition mechanisms changed away from digital acquisition to targeting Enterprise customers○ Shift in Sales strategy - Inside to Outside○ Extended Enterprise sales cycle

$ 000 H1 2015 H2 2015Half on

Half

Project revenue $1.1m $0.9m (15%)

Higher Margin revenues $0.0m $0.1m N/A

Other Admin costs 2 $2.4m $1.7m (30%)


2 Other Admin costs are Administrative expenses less Amortisation, Depreciation, Audit fees, Bad

debt provision, Loss on disposal, Staff costs, Operating leases and Foreign Exchange losses


● 2014 R&D tax credit received Q1 2016 - $0.5M

● Q1 2016 closing cash - $5.8M

● Two consecutive quarters of cost and cash burn reduction following actions in Q3

● Quarterly burn figures exclude FX

$ 000 2015 2014

Net Cash used in Operations $(7.8)m $(9.7)m

Net Cash used in Investing Activities

$(1.5)m $(2.0)m

Net Cash raised from financing activities

$(0.0)m $21.0m

Opening cash balance $17.4m $9.6m

Net (decrease)/increase in cash $(9.3)m $9.3m

Effect of unrealised forex movement on cash

$(0.9)m $(1.5)m

Closing cash balance $7.1m $17.4m

6

2015 Cash Flow


Q1 2016 metrics update

ALL PROJECTSQ1

2016Q4

2015CHANGE

No. No. %

Pitching On 97 104 -6.7

Kicked Off 101 97 +4.1

Completed 80 78 +2.5

● Proportion of Enterprise growing across key metrics

● Continued tightening of conversion rates and increase in repeat business

● 2 New Enterprise customers Q1 2016 - 1 US, 1 UK

○ First projects Kicked Off

ENTERPRISE PROJECTS ONLY **Q1

2016Q4

2015CHANGE

No. No. %

Pitching On 74 64 +15.6

Kicked Off 76 64 +18.8

Completed 42 44 -4.5


Estimated global cost of indirect procurement waste - up to $2.28T

Cost reduction is the No. 1 strategic imperative for corporate CEOs in 2016 - KPMG

According to AMR Research, enterprises that do not

employ spend analytics regularly miss 10% - 15% in

savings

Better procurement systems could save 32.3 million

hours and $1.5B per year in North America alone*

While quick wins are appreciated, a truly effective

procurement waste reduction strategy will continue to

provide savings year over year.

Procurement Waste Reduction - Best Practice

● Smart Spend Management● Rightsourcing● Sharing Economies/Online Platforms

Immediate actions:

● Implement a competitive bidding structure● Go digital● Educate staff about fraudulent activities● Create strong supplier relationships● Implement a business services catalog

* Topline Strategy Group


Quantifying unmanaged spend for the Enterprise

Unmanaged purchases within the indirect spend category are estimated to consume up to 15% of an organization’s total spend

Through better management, an enterprise with an indirect procurement spend of $500 million can potentially add $25m to the bottom line without any sacrifice.

Unmanaged spend has a high level of procurement waste:

● Maverick spending

● Fraud

● Unmanaged contracts

● Excessive time lost by management due to poor

purchasing decisions

Starts with the indirect spend category


Potential savings in indirect spend by industry & company size

Key early Enterprise verticals include:● Consumer Goods/FMCG● TMT

● Public Sector● Professional Services


blur customer profile

Customers Annual Revenue

Number of projects per account p.a

$300m$1bn+

200

500

1000

5000

25

$100m $50m $10m

Spot Buyers

Platform Customers

Telemarketing/Inside Sales Enterprise Sales

$5bn+

Optimise spot buyer base while developing Enterprise Platform opportunities


Enterprise customer roll out

Pilot Roll out 1 Roll Out 2

9-12 months

1-3

3-5

$100K

12-18 months

5-10

Single Function/Single country

$500K

Share Supplier Management

Multi-year

10+

Multi-function/Multi country

$1m+

Outsource Supplier Management

Trial Supplier Management

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Customer description Country

Electronic commerce and cloud computing US

Financial services US

Language services US

Systems integrator US

Materials manufacturer US

Security products manufacturer US

● Customers in Pilot or early Roll out 1

● Spot buyers:

Enterprise customer pipeline tracking

Customer description Country

Education - universities UK

Multimedia publishing UK

Catalogue retailer UK

Food products UK

Oil and gas/FMCG UK/EMEA

Multi-channel menswear retailer UK

Public sector council UK


Organization

Newcastle-Under-Lyme Borough

Council (NULBC) is responsible for

delivering a wide-ranging number of

services to inhabitants of the 22,000-

hectare Staffordshire borough,

including: waste services, recycling,

housing, regeneration and development,

benefits and Council Tax.

Problem

The council needed to demonstrate

local activity to support national debt

reduction strategy. NULBC focused on

local advertising on council-owned land

as a potential revenue stream.

NULBC failed to source a specialist

design firm via traditional public

procurement solutions like MyTenders.

The project halted for 18 months.

Solution

blur’s Marketplace. Within hours of

submitting project requirements, design

firms began to pitch for NULBC’s

project.

Within just 10 days, blur had identified

and shortlisted three specialist design

firms for NULBC.

A project that had been delayed for 18

months was finally back on track. The

project kicked-off shortly after.

Result

Five months post launch, the

advertising assets were already

generating a 300% increase in income

compared to previous years’ rental

values.

As many as 17 hoardings are now

planned for council land.

Estimated annual income for the

council is £80,000, or £800,000 during

the lifecycle of the project - the

equivalent of an 11% increase in

Council Tax for every household in the

borough.

Newcastle-Under-Lyme Borough Council case study

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blur 5.0The Enterprise Services Cloud Platform

Business units blur’s cloud based software and managed services Platform

Platform Features

Secure Access Worldwide Reach

Vetted Suppliers

Proven Process Exceptional Delivery

Mitigated Risk

More focus:● Buy from quality, motivated providers

● Competitive environment

● The best fit selected

● Global expertise across the supply base

● Stronger controls

More Choice● The preferred supplier list, fully vetted

● 65,000+ Service Providers worldwide

● On-demand delivery

● Scalable: Project volume and values

Streamlined process: ● Managed Services

● Single point of payment

● Enterprise project management technology

Achieve Operational Excellence within your Supply Chain

PitchBrief Project Delivery

Project Delivery Process

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Management Reporting

Spend and project progress reporting including total

project spend on an account, group and individual user

basis, and drawdown reports of spend against proposed

budgets

Multi-user Account Management

Introduce company accounts, manage users within an

account, set user groups and roles, account budgets,

user permissions for submitting and managing projects,

and workflow approvals

Universal DashboardSingle dashboard for users to buy and sell services,

as well as managing their account and all of their

projects

Turning suppliers into buyersAdding simple one click customer account creation

for Service Providers and simple switching between

buyers or sellers dashboards

Blur SenseImproved automation of service provider

shortlist and pitch ratings as well as automated selection. Search improvements with tagging in

user profiles and briefs

blur 6.0Enhancing the Enterprise Feature Set


● Two consecutive quarters of cost and cash burn reduction

● Conservative, accurate P&L & cash forecasting

● blur 5.0 The Enterprise Services Cloud Platform delivered

● blur 6.0 enhances the Enterprise feature set

● Growing proportion of Enterprise customers

● High margin ancillary revenues developing

● The Enterprise sales cycle is long

● Revenues scale once Enterprise customers in wider roll outs

Summary

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Cost efficiencies and cash optimisation is our No. 1 strategic imperative until Enterprise Platform customers are into wider roll outs


The information contained in this confidential document ("Presentation") has been prepared by blur Group plc (the

"Company"). This Presentation has not been approved by an authorised person within the meaning of the Financial

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Appendices

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blurring the lines between your company and your supply chain, changing the way you manage your spend

blur helps you reshape the way you run your business

Website DevelopmentTechnology

Public Relations Marketing

Video ProductionVideo

Cloud MigrationTechnology

Marketing Campaigns Marketing

Advertising Copy Content

Mobile App DevelopmentTechnology

Leadership Coaching Human Resources

IP & Patent Law Legal

ChangeManagementHR

SEO Content WritingContent

Financial & Business PlanningAccounting

IP DiscoveryInnovation

Data & AnalyticsTechnology/Marketing


blur Manage UltraEnhanced project support throughout the life a customer's project

blur Protect AdvancedAdded protection and customization of the customer’s project

blur ExpressFor fast turnaround projects

Enterprise Premium Services

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Enterprise Buyer PlansEnterprise buyers can choose from a range of monthly subscription plans to best support their annual usage requirements on blur’s Platform

Buyer and Seller Subscriptions and Licenses

22


Buyer and Seller Subscriptions and Licenses

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Service Provider Plansblur’s subscription-based community gives Service Providers signing up to the Marketplace an opportunity to differentiate themselves through tiered-levels of value-added plans: Standard, Professional and Enterprise


blur Data is an interactive dashboard accessed via a paid annual subscription

It enables access to intelligence on the business services industry and services e-commerce including project trends, pricing and timeline forecasts as well as wider services industry analytics

blur Data

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source purchase manage deliver marketplace the enterprise ...€¦ · approx 30% increase in direct...

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