Admission Document - BrainJuicer

Technology Risk
• A strong software platform is essential for carrying out online research. This software must be
reviewed and updated on a regular basis to ensure that it is not superseded by newer technologies in
other companies. In the event of a technology failure there would be significant business disruption.
Commercial Risk
• Although the Group has grown substantially since BrainJuicer UK was incorporated in December
1999, it remains a relatively small group in an early stage of development. The Group faces
competition from both large established international companies as well as small local businesses
operating in the same sector.
• The Group may have to defend itself against legal proceedings which could have an adverse affect on
trading performance and, in turn, future profits.
• The Group’s business exposes it to potential product liability and indemnity risks. There can be no
assurance that the necessary insurance cover will be available to the Group at a commercially
acceptable cost or that, in the event of any claim, the level or extent of insurance carried by the Group
now or in the future will be adequate, or that a product liability or other claim would not materially
and adversely affect the business of the Group.
• There is no assurance that the Group will be successful in the development of its products and services
and, if developed, that there will be a market for these products. If the Group fails to successfully
design and introduce new and improved products it is possible that the Group may find that its current
product suite becomes obsolete and unmarketable.
• The Group is relatively young and therefore has a smaller database of historical survey results for use
as comparables in its surveys than some of its competitors. Any data bias or error within the Group’s
database could have a statistically significant impact on its research conclusions which could
negatively impact the credibility of the Group’s business.
• Although the Group has established various procedures to check the credentials of its Juicy Brains
Panel, there can be no assurances that panelists have in all cases provided true and accurate data.
Relationships with customers
• The success of the Group is, in part, dependent on building and maintaining strong relationships with
a relatively small group of large domestic and multinational companies. In order to be successful in
the future the Group will need to continue to build and maintain strong relationships with these
companies. An inability to do so may lead to a material and adverse effect on the Group’s business.
• The Group does not have any long term contracts with customers and is, consequently, at risk of its
customers sourcing the type of services provided by the Group from other providers.
• In the year ended 31 December 2005,some 41 per cent. of the Group’s revenue was derived from five
customers. Although the Directors are seeking to reduce the Group’s reliance on winning business
from a small number of customers there remains a risk that should a key customer be lost, this may
have material impact on the Group.
• As the Group principally deals with organisations which are significantly larger than itself as its
principal customers, the Group’s margins may be subjected to pressure if their customers seek to
exploit this position.
Economic Factors
• Fluctuations in exchange rates may affect product demand in different regions and may adversely
affect the profitability of products provided by the Group in foreign markets where payment for the
Group’s product suite is made in local currency.
21