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reviewed and updated on a regular basis to ensure that it is not superseded by newer technologies in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