Blur : Quarterly Business Update Feb 17

blur Group plc

("blur Group", the "Group" or the "Company")

XX February 2017

Q4 2016 Quarterly Business Update

First 12 month subscription to Group buyer plan taken up by Top 100 UK-based law firm

blur Group plc (AIM:BLUR), the market-leading Indirect Spend Management Platform, today releases key metrics for Q4 2016, a period that saw the first subscription to blur's subscription based Group buyer plan together with further improvements to EBITDA, operating costs and cash burn. FY 2016 EBITDA is expected to be ahead of expectations.

• First 12 month subscription to Group buyer plan taken up by a Top 100, UK-based law firm

• Increased volume of orders placed from Enterprise* customers following Q3 seasonal dip

• Fifth consecutive quarter of improved underlying cash burn - down by 10% to $0.9 million in Q4 2016, from $1.0 million in Q3 2016 (excluding R&D tax credit and foreign exchange movements)

• Cash at the end of Q4 2016, including unrealised foreign exchange movements, was $2.5 million (£2.0 million)

• Operating costs reduced by 10% compared to Q3 2016 - down by 43% compared to Q4 2015

• blur 6.0 platform development completed

• FY 2016 EBITDA expected to be ahead of expectations

  ALL ORDERS	Q4 2016	Q3 2016	CHANGE
  No.	No.	%
  Pitching On	117	57	+105.3
  Kicked Off	32	44	-27.3
  Completed	54	46	+17.4

  ENTERPRISE ORDERS ONLY*	Q4 2016	Q3 2016	CHANGE
  No.	No.	%
  Pitching On	87	8	+987.5
  Kicked Off	5	2	+150.0
  Completed	29	6	+383.3

  *blur defines the Enterprise as a business with 50 or more employees

  During Q4 2016, blur saw the first subscription to its 12 month Group buyer plan. Purchase of this plan provides blur's customer, a Top 100 UK law firm, with access to blur's Marketplace of over 65,000 vetted suppliers.

  blur saw an increase in volume of Enterprise orders Pitching On following the summer's seasonal slow down and Brexit-driven decline in Q3 2016. While the average value of these orders remains relatively low, blur's management view this increased volume, alongside the take up of the Group buyer plan, as evidence of early momentum in our Enterprise market, that we expect to develop through 2017 and beyond.

  We continue to focus on platform sales to large Enterprises that include:

  Top 100 UK-based law firm; In Q4, blur saw the first subscription to a Group buyer plan from this new customer. This one year subscription allows the customer to transact an annual spend value of up to $2 million through blur's platform. The Company is currently working with this customer on a significant multiple six figure order, the successful completion of which, will bring greater efficiency and improved value to our customer's business. UK listed enterprise, aerospace engineering; As reported in blur's Q3 2016 business update, the roadmap with this customer conforms to the Group's expectation of long sales cycles when working with

  Enterprise clients. blur remains engaged with this Group and continues to work towards a 2017 roll out of

  blur's platform addressing both Goods and Services across all Indirect spend categories.

  Global enterprise, sportswear retailer; blur continues to work with this corporation on an initial pilot due to launch in 2017. Initially operating in one trial geography, blur is seeking to complete a pilot phase which, if successful, could lead to a wider global rollout. Again, the sales cycle is consistent with a large Enterprise platform sale. Global enterprise, electronics/technology; blur continues to work closely with senior management at this Group, aiming to successfully conclude the pilot phase which could lead to a wider roll out of blur's platform.

  In addition, blur completed the development in Q4 2016 of its 6.0 platform. Key features of blur 6.0 include:

  • Goods added to the platform giving blur's customers a comprehensive Indirect Spend

    Management platform

  • Features to exceed Enterprise customer expectations including:

    • Multi-user account management

    • Enhanced reporting

  • Enhanced automation of supplier shortlisting and selection via blurSenseTM

For the fifth consecutive quarter, blur has seen its focus on larger, Enterprise accounts drive improvements to EBITDA, operating costs and cash.

The Group's cash balance at the end of Q4 2016 totalled $2.5 million (£2.0 million) compared to $3.6 million at the end of Q3 2016.

blur's reported cash balance was impacted by $1.2 million of unrealised exchange losses in 2016 and $0.2 million of unrealised exchange losses in Q4 2016, as the valuation of blur's cash balances were further affected by the decline in the GBP:USD exchange rate.

On a constant currency basis for 2016, cash (predominately held in GBP) would be valued at $3.1 million at the end of Q4 2016. This is slightly ahead of analyst forecasts.

Excluding these exchange movements, the cash burn for the quarter was $0.9 million, down from $1.0m in Q3 2016.

blur's operating efficiency improved again, driven by further process improvements in the blur 6.0 platform. These resulted in a reduction in operating expenses of 10% in Q4, compared to Q3 2016 and by 43% compared to Q4 2015.

Philip Letts, blur Group CEO, commented:

This announcement contains inside information.

blur Group plc investors@blurgroup.com

Tim Allen Tel: +44 (0) 1392 927 618

Shaun Dobson/James White N+1 Singer

Tel: +44 (0) 20 7496 3000

Alistair de Kare-Silver/Felicity Winkles Yellow Jersey PR Tel: +44 (0) 7825 916 715

Since 2010, blur Group has been helping enterprises worldwide eliminate waste and inefficiency in their indirect procurement process through its market leading Indirect Spend Platform & Marketplace. To date over 65,000 businesses, including companies like, Tesco, Danone, Trinity Mirror, and PwC, have used blur's platform to either buy or sell goods and services online submitting over $500m of requirements to blur Group's platform.

blur Group is a public company listed on the London Stock Exchange's AIM market (BLUR) and is headquartered in the UK with regional sales offices in the US and Europe.