4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 1/30
Blur Group PLC
2015 Final ResultsRNS Number : 4278WBlur Group PLC27 April 2016
blur Group plc("blur Group", the "Group" or the "Company")
2015 Final Results
& Q1 2016 Quarterly Metrics Update blur Group plc (AIM: BLUR), the world's first Enterprise Services Pla�orm and marketplace, is pleased to announceits audited final results for the year ended 31 December 2015 and to provide the market with its Q1 2016 keymetrics. 2015 Opera�onal highlights
· Transi�on to an Enterprise‐only strategy complete. Evolved from the early stage, proof‐of‐concept phase,
suppor�ng small buyers and sellers to an Enterprise*‐focused strategy that supports larger organiza�ons.· blur 5.0 launched ‐ a fully Enterprise level pla�orm with the security, features and automa�on required
for adop�on within a large corporate environment.· Launch of high margin SaaS Premium Services products ‐ Buyer Plans, Service Provider Subscrip�ons and
Premium Services offerings.· Elimina�on of all con�ngent projects in the Marketplace.· Enhanced quality control of projects, customers and Service Providers.
2015 Financial highlights
Measure 2015 2014
Year on
yearProject revenue $1.95m $2.59m (25%)Cancella�on (previously Lis�ng fees) $0.63m $2.13m (70%)Other revenue $0.12m $0.00m N/AGross profit $0.29m $1.65m (82%)LBITDA1 $(8.90)m $(9.01)m (1%)Cash balance $7.1m $17.4m (59%)
1 LBITDA is loss before interest, tax, deprecia�on and amor�za�on, foreign exchange movements and share op�on costs.
· Financial Repor�ng Council (FRC) enquiry closed ‐ blur's accoun�ng policy and posi�on as 'principal'within project transac�ons confirmed as reasonable.
· Clear, robust and proven revenue recogni�on processes implemented.· Phasing out of Lis�ng Fee income ‐ replaced by 'Single User Access Fee' in H2 2015; improved up‐front
project ve�ng processes; greater propor�on of projects comple�ng.· 2015 revenue in line with expecta�ons.· Administra�ve and development costs reduced as efficiency increases and the pla�orm reaches
Enterprise maturity.· 2015 LBITDA improved by 1% compared to 2014 and ahead of expecta�ons. Q4 2015 LBITDA improved
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 2/30
by 40% compared to Q3 2015.· Cash burn reduced in Q4 2015 by 58% compared to Q3 2015.
Post period end Highlights
ALL PROJECTS Q12016
Q4 2015 CHANGE
No. No. %Pitching On 97 104 ‐6.7Kicked Off 101 97 +4.1Completed 80 78 +2.5ENTERPRISE PROJECTSONLY**
Q1 2016 Q42015
CHANGE
No. No. % Pitching On 74 64 +15.6 Kicked Off 76 64 +18.8 Completed 42 44 ‐4.5
**blur defines the Enterprise as a business with 50 or more employees
· Opera�ng costs down 25% in Q1 2016 compared to Q4 2015 as pla�orm maturity and higher qualityrevenue streams drive further opera�onal efficiencies.
· Underlying cash burn (excluding Foreign Exchange movements) reduced by 33% to $1.0 million in Q12016 from $1.5 million in Q4 2015.
· 2014 R&D tax credit of $0.5 million received in Q1 2016.· Cash at end of Q1 2016 was $5.8 million.· Conversion rate of all Pitching On to Completed projects increased from 75% in Q4 2015 to 82% in Q1
2016.· Level of Enterprise repeat Kicked Off projects at 96% in Q1 2016 compared to 84% in Q4 2015.· Propor�on of Enterprise Kicked Off projects increased from 66% in Q4 2015 to 75% in Q1 2016.
Philip Le�s, blur Group CEO, commented: "The team at blur worked hard in 2015 to complete the transi�on to an Enterprise‐focused strategy. This meansthat in 2016 we operate a comprehensive next genera�on solu�on for Enterprises to be�er manage their indirectbusiness services spend. "Now that our Enterprise transi�on is complete, I remain convinced that our Enterprise strategy is the right onefor blur and its stakeholders. Acquiring repea�ng, loyal accounts is key to our future success. By maintaining highlevels of delivery and focusing on helping our customers buy business services be�er, blur will con�nue on itspath to profitability. "Q1 2016 saw further progress execu�ng on our Enterprise strategy. Our engagements with Enterprise customerstell us that business leaders are becoming increasingly aware of the need to priori�ze the control of unnecessarycost and risk in their unmanaged, indirect business services spend. Increasingly these Enterprises are recognizingthat blur's unique combina�on of cloud so�ware and managed services offers an efficient, digital and agilesolu�on to drive new efficiencies in indirect spend. We recognized that our Enterprise strategy would lead to an extension of the sales cycle. The decentralized natureof indirect procurement in a large Enterprise, combined with the �me that can be taken for an Enterprise toiden�fy and quan�fy their indirect spend problem, means that we expect the cycle between ini�al mee�ngs andthe placement of higher volumes of project spend with blur to extend over several quarters. However, our Enterprise‐focus con�nues to drive efficiencies which will lead to further improvements in our cashflows." For further informa�on, please contact:
blur Group plc [email protected]
Tim Allen Tel: +44 (0) 1392 927618
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 3/30
Shaun Dobson/Jen Boorer N+1 Singer Tel: +44 (0) 20 7496 3000 Dominic Barre�o/Alistair de Kare‐Silver Yellow Jersey PR
Tel: +44 (0) 7825 916 715
Chairman's Statement
Prior to 2015 blur Group invested in developing and proving a new concept in business services procurement,
which resulted in the development of a service provider base of over 60,000 and the use of our evolving
technology pla�orm by a broad spectrum of organiza�ons seeking a new and efficient way of procuring business
services. In 2015, blur Group applied this experience and resultant V5.0 of the technology pla�orm to the
interna�onal Enterprise market and successfully started to achieve recogni�on from this target customer base
that blur offers a new, agile and cost effec�ve way in which business services can be procured. In turn blur's sales
and marke�ng efforts, delivery processes and internal controls have been polished to ensure a high quality
customer experience and provide our staff, investors and service providers with confidence in the relevance of the
business model.
By introducing industry‐based calculators and business intelligence tools, blur Group has helped its current
por�olio of key Enterprise customers shape and quan�fy wasteful spending within their organiza�ons. Framing
ini�al conversa�ons with new prospects around poten�al savings has helped them engage with blur. Our
messaging around indirect spend cost reduc�on for Enterprises has proved �mely with an increasing number of
businesses priori�zing this strategy, especially as uncertainty con�nues in the global economy.
blur Group is no longer proac�vely pursuing high volume transac�onal sales via single, low‐value project
submissions, but rather partnering with Enterprise customers to help them achieve larger scale savings. Our
offering is unique, combining both cloud so�ware and managed services through a single pla�orm. It is a highly
accessible cloud based solu�on that benefits either several func�ons across any large organiza�on or a centralized
procurement strategy.
A consequence of our transi�on to the larger Enterprise is the inevitable extension of the sales cycle. Despite this
challenge (for which we have tuned our sales and marke�ng approach and reset our investment levels) we are
confident that the Enterprise strategy is the right one to build long‐term shareholder value. Our buyer plan
products and the introduc�on of premium services are influencing our model and should show improvements to
our margins as they are adopted.
The Execu�ve team have con�nued to work hard to improve blur's own efficiency, with administra�ve costs
significantly reduced in the second half of the year. For 2016, we will con�nue to leverage costs and maintain a
�ght focus on cash.
The conclusion of the Financial Repor�ng Council's enquiry has confirmed our recogni�on as Principal in our
market and the implementa�on of robust revenue recogni�on policies. To support the con�nued development of
the Group we have appointed new Board members in 2015. Each brings a high degree of exper�se in their field,
together with extensive Enterprise so�ware experience.
I believe we have a Board and management team that understand the customers and the market in which blur
operates and an organiza�on that can leverage the investment made in developing its business model, its staff
and its technology to achieve success in the Enterprise market. I would like to thank them, as well as all the staff,
for their commitment and outstanding efforts in 2015 in achieving the difficult transi�on to an Enterprise focused
delivery pla�orm and service.
Finally, I would like to thank blur's shareholders and stakeholders for their con�nued support of the business and
for their input and help in developing the business model and structure.
David Sherriff
Chairman
26 April 2016
Chief Execu�ve Officer's Report
The team at blur worked hard in 2015 to complete the transi�on to an Enterprise‐focused strategy. This means
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 4/30
that in 2016 we operate a comprehensive next genera�on solu�on for Enterprises to be�er manage their indirectbusiness services spend. At the same �me, we achieved considerable internal cost efficiencies with a step change reduc�on in our cashburn rate once blur 5.0 was completed in H2. We expect that our opera�onal gearing will drive futureimprovements in our financial performance. We have built an end‐to‐end services procure‐to‐pay pla�orm that provides Enterprises with the ability toefficiently outsource the purchasing, management, payment and delivery of business services. This solu�oncombines managed services, cloud so�ware and a global marketplace of service providers in a single pla�ormthat is driven by machine intelligence and data analysis. During 2015 our focus has been on the Enterprise customer and service provider. blur 5.0 saw the pla�ormpiloted by a growing number of larger Enterprises. At the same �me, we saw an increase in repeat projects fromexis�ng Enterprises. Indeed, in Q4 2015 84% of Enterprise projects came from exis�ng customers. Business leaders are eager to improve profitability and cash flow. They are looking to be more innova�ve in theway they approach cost reduc�on. Digital procurement strategies are becoming increasingly popular. Over the last 12 months, we have met with customers and prospects to be�er understand their cost reduc�onstrategies. Certain companies, for example, those in oil and gas and FMCG sectors, are looking closely at indirectspend management as a means to make immediate cost savings. They already see the poten�al to eliminatewasteful spending and inefficiencies within the procurement of business services. This approach combined with a �ghter partnership between our sales and delivery teams has helped usstreamline our posi�oning and our services to more effec�vely iden�fy and address the business‐cri�calrequirements of our customers. One size does not fit all when it comes to procuring business services across the Enterprise. This has driven us tocreate a core service offering for all customers, with a suite of wraparound premium services to meet theindividual needs and requirements of each project. Buyers have complete control of their project delivery throughthe use of blur's pla�orm. Our marke�ng team has concentrated on developing channels that cost effec�vely acquire Enterprise customersrather than projects, signaling a move away from broader digital adver�sing acquisi�on. We target customers andprospects on their company wide indirect spend issues with sustainable long‐term savings being a key element.This move has resulted in a significant reduc�on in our cost of acquisi�on. Our key message; elimina�ng the wasteand inefficiency inherent across the indirect procurement process is resona�ng with customers across our primarymarkets of Western Europe and North America. In delivery, we con�nue to enhance our offering by showcasing the benefits of cloud so�ware and managedservices to source and deliver projects. The improved technology associated with the release of blur 5.0 brings asuperior level of automa�on to some of the standard aspects of project management processes. This allows ourpeople to remain dedicated to enhancing the customer experience and repeat business. Our improved understanding of our Enterprise customers has influenced further development of our cloud‐basedso�ware, resul�ng in an Enterprise‐grade solu�on. We start 2016 with an Enterprise pla�orm engineered tosupport large scale projects. Whether shortening the pitch process or using a greater degree of machine‐intelligence to be�er match a service provider with a buyer, we are constantly listening to our customers andadding new features to improve their experience. This will result in the next itera�on of our pla�orm, blur 6.0 tobe in line with management expecta�ons, which we will begin to rollout in the first half of 2016. Financially, we have seen a decline in project revenues over the period. However, I believe this to be transi�onalas we shi� from higher volume, small business project sales to Enterprise account‐driven sales. These changes areleading to an increasing mix of Enterprise revenues and repeat buyers.In Q4 2015 the propor�on of Enterprise projects Kicking Off rose to 66% and the conversion rate of Pitching On toCompleted Projects reached 75%. These sta�s�cs are a sign of things to come. Another indicator of our improving revenue quality is the phasing out of Lis�ng Fee revenues. With our rejec�onof con�ngent projects and the move away from online adver�sing driven business, we are seeing a higher rate ofproject comple�on and greater ini�al income from buyer plans and premium service products. Driving growth in
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 5/30
these product areas will prove important in increasing future gross profitability. During the year a major step forward was taken with the conclusion of the Financial Repor�ng Council's enquiryinto blur's Annual Report and Accounts for the year ended 31 December 2013. Resta�ng the results for that yearwas a challenging experience for the whole Group, but we also saw affirma�on of blur's judgement that it takesthe role of principal in its transac�ons with its customers. We have also confirmed a set of revenue recogni�onpolicies that are robust, clear and appropriate. Now that our Enterprise transi�on is complete, I remain convinced that our Enterprise strategy is the right one forblur and its stakeholders. Acquiring repea�ng, loyal accounts is key to our future success. By maintaining highlevels of delivery and focusing on helping our customers buy business services be�er, blur will con�nue on itspath to profitability. Outlook
Q1 2016 saw further progress execu�ng on our Enterprise strategy. During the period our engagements withEnterprise customers tell us that business leaders are becoming increasingly aware of the need to priori�ze thecontrol of unnecessary cost and risk in their unmanaged, indirect business services spend. Increasingly theseEnterprises are recognizing that blur's unique combina�on of cloud so�ware and managed services offers anefficient, digital and agile solu�on to drive new efficiencies in indirect spend. We recognized that our Enterprise strategy would lead to an extension of the sales cycle. The decentralized natureof indirect procurement in a large Enterprise, combined with the �me that can be taken for an Enterprise toiden�fy and quan�fy the issue, means that we expect the cycle between ini�al mee�ngs and the placement ofhigh volumes of project spend with blur to extend over several quarters. However, our Enterprise‐focus con�nues to drive internal efficiencies which will lead to further reduc�ons in ourcash burn rate. I would like to thank all of our employees, our customers and our shareholders for their con�nued support. Philip Le�sChief Execu�ve Officer26 April 2016 2015 Financial Review
Financial Repor�ng Council enquiry
In March 2015, the Financial Repor�ng Council informed the Group of an enquiry into the Annual Report for yearended 31 December 2013. The principal issues raised were whether the Company was principal or agent in rela�on to the outsourcingservices it provides, whether revenue was recognized only when there was sufficient evidence to conclude thatthe stage of comple�on could be assessed reliably and that it was probable that economic benefits would bereceived, and whether the strategic report gave a fair and balanced analysis of the Company's performance. This enquiry concluded on 30 September 2015. No further adjustments or restatements were required to therestated results for the year ended 31 December 2013 published in the 2014 Annual Report on 30 June 2015. Inaddi�on, no further adjustments or changes are required to the 2014 results included in the Annual Report to 31December 2015. The Financial Repor�ng Council agreed that it was reasonable for the company to view itself asprincipal rather than agent.
Revenue
Revenue for the year decreased by 43% to $2.70m (2014: $4.72m) within which Project fee revenue declined by25% to $1.95m (2014: $2.59m). As the Group transi�oned to an Enterprise‐only strategy, it removed access to allcon�ngent projects in the Marketplace and ceased direct marke�ng ac�vi�es aimed at the SME market. blur has experienced longer sales cycles in the more mature Enterprise market, while revenue from one‐off SMEprojects dropped off more quickly, which led to the decline in project revenues. However, the overall quality and
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 6/30
collectability of blur's project revenues has improved during the year. Cancella�on fee income (previously Lis�ng fees) declined by 70% to $0.63m (2014: $2.13m). The improvingquality of projects during the year, which has led to a higher propor�on of projects comple�ng, drove this decline.Income from Access fees (including subscrip�ons) totaled $0.10m with the Single User Access Fee andSubscrip�ons being launched in H2 2015. The newly launched Premium Service products generated $0.02m ofincome in the year. Gross marginFrom 2014 blur includes the cost of blur staff directly involved in the delivery of projects from lis�ng tocomple�on, in cost of sales. Gross profit was $0.29m in 2015 (2014: $1.65m). The reduc�on has been driven by the reduc�on in Cancella�onfee (previously Lis�ng fee) income. The staff costs charged to cost of sales reduced by 11% to $0.84m (2014:$0.94m). LBITDAThe LBITDA (Loss before Interest, Tax, Deprecia�on and Amor�za�on, Foreign Exchange movements and ShareOp�on costs) for the year reduced by 1% to $8.90m (2014: $9.01m) despite the reduc�on in gross profit. Q4 2015LBITDA improved by 40% compared to Q3 2015. This was largely driven by the reduc�on in administra�ve costs. CostsAdministra�ve costs decreased by 13% to $11.0m (2014: $12.62m) due to blur's increasing ability to improveefficiency with the launch of blur 5.0. As an�cipated, opera�onal efficiencies con�nued to improve in Q4 with the Group increasingly able to streamlineits processes. The structural changes made in Q3 and Q4 2015 led to a 58% reduc�on in the underlying cash burnin Q4, compared to Q3. The credit risk associated with the customers using the marketplace in 2015 resulted in a $0.85m (2014: $0.83m)bad debt provision included in administra�ve costs, the majority of which was incurred in H1. During 2015 the average number of full‐�me employees reduced from 65 to 50 with a consequent reduc�on instaff costs. Share‐based payments costs of $0.52m (2014: $0.46m) remained broadly flat year‐on‐year. Loss a�er taxThe loss a�er tax for the year reduced to $10.1m (2014: $10.5m). Finance income of $0.2m (2014: $0.1m) reflects higher cash balances held on deposit. Taxa�on includes $0.45m(2014: $0.53m) of R&D tax credit. Tax lossesTax losses for the Group up to the end of December 2015 amount to a total of $22.5m, none of which arerecognized as a deferred tax asset. CashThe cash balance at year‐end was $7.1m (31 December 2014: $17.4m). Opera�ng cash ou�low from opera�ng ac�vi�es was $7.8m (2014: $9.7m) and working capital decreased by$0.8m (2014: decrease $0.2m). Investments in intangible technology assets totaled $1.5m (2014: $1.9m),primarily reflec�ng the capitaliza�on of internal technology development. Trade receivables Historically, blur had a diverse list of customers, with differing levels of credit risk. There were significant levels ofbad debts in respect of small and medium sized businesses as blur tested the marketplace. The transi�on to an Enterprise‐only strategy, the denial of access to the marketplace to con�ngent projects andan increased focus on collec�ons has served to mi�gate this credit risk in 2015. Q1 2016 Quarterly Update
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 7/30
During Q1 2016 the Group con�nued with its strategic focus on securing high‐quality Enterprise customers with a
propensity for repeat business. As an�cipated, Enterprise customers con�nue to make up an increasing
propor�on of blur's overall revenue and project base.
Q1 2016 saw another consecu�ve increase in the propor�on of Enterprise projects Pitching On (62% in Q4 2015
to 76% in Q1 2016) and Kicked Off (66% in Q4 2015 to 75% in Q1 2016) as blur's sales and marke�ng teams
con�nue to develop new rela�onships with targeted Enterprise accounts.
Two new Enterprise customers Kicked Off projects in the quarter; one a US‐based Systems Integrator, the other a
UK‐based firm of solicitors. We con�nue to focus on providing Enterprise‐class customer service, with blur's
Trustpilot ra�ng reaching a high of 9.1.
blur's higher margin offerings con�nued to evolve in the period, with an 50% increase in Q1 compared to Q4
2015. While Premium Services currently make up a rela�vely small propor�on of income in the quarter,
con�nuing their growth will be a key driver of profitability for blur. blur expects these revenues to increase as
Enterprise customers increase their rate of business services spend through blur's pla�orm.
Again, blur again saw improvements in its opera�ng cost base as the focus on the Enterprise, together with the
comple�on of blur's 5.0 pla�orm in Q4 2015, drove further internal efficiencies. Opera�ng costs reduced by 25%
in Q1, compared to Q4 2015. When compared to Q3 2015, Q1 2016's opera�ng costs have been reduced by 57%.
The Group's cash balance at the end of Q1 2016 totaled $5.8 million compared to $7.1 million at the end of Q4
2015. An R&D tax credit of $0.5 million, rela�ng to 2014, was received in the period. Cash has been impacted by
$0.5 million of unrealized exchange losses in the last two quarters and $0.3 million of unrealized exchange
movements in Q1 2016, as the valua�on of blur's sterling denominated cash balances was impacted by the
decline in the GBP: USD exchange rate in Q1 2016. Excluding these exchange movements, the cash burn for Q1
2016 was $1.0 million.
Consolidated Statement of Total Comprehensive Incomefor the year ended 31 December 2015
2015 2014
Note US$ US$
Revenue 4 2,695,970 4,715,208
Cost of sales (2,408,162) (3,069,604)
Gross profit 287,808 1,645,604
Total administra�ve expenses
5
(11,028,740)
(12,624,953)
Loss from opera�ons (10,740,932) (10,979,349)
Finance income 7 221,509 93,459
Finance expense 7 (726) (143,660)
Loss before tax (10,520,149) (11,029,550)
Tax credit 8 430,973 530,487
Loss for the year a�ributable to equity holders of the parent Company (10,089,176) (10,499,063)
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 8/30
Consolidated Statement of Total Other comprehensive Income for the Year
Ended 31 December 2015
2015
US$
2014US$
(Loss) for the year
(10,089,176) (10,499,063)
Other comprehensive income
Exchange gains/(losses) arising on the transla�on of foreign subsidiaries (couldsubsequently be reclassified to profit and loss)
(740,778) (1,544,473)
Total comprehensive losses a�ributable to equity holders of the parent Company (10,829,954) (12,043,536) Basic and diluted loss per share for losses a�ributable to the owners of the parentduring the year 9 (0.21) (0.27)
The results reflected above relate to con�nuing ac�vi�es. The accompanying notes are an integral part of these financial statements. Consolidated Statement of Financial Posi�on
At 31 December 2015
Note
2015
US$
2014US$
Non‐current assets Property, plant and equipment 10 63,819 129,364Intangible assets 11 2,715,680 2,269,284Total non‐current assets 2,779,499 2,398,648
Current assets Trade and other receivables 12 840,857 1,740,885Tax Receivable 955,772 766,631Cash and cash equivalents 7,144,877 17,401,774Total current assets 8,941,506 19,909,290
Total assets 11,721,005 22,307,938
Current liabili�es Trade and other payables (including deriva�ves) 13 1,478,137 1,946,046Social security and other taxes 263,137 75,198Loans and borrowings 14 14,804 15,632Total current liabili�es 1,756,078 2,036,876
Total liabili�es 1,756,078 2,036,876
Net assets 9,964,927 20,271,062
Issued capital and reserves a�ributable to owners of parents
Called up share capital 15 769,179 769,179Share premium 37,425,856 37,425,856Equity conversion reserve 8,967 8,967
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 9/30
Merger reserve 1,712,666 1,712,666
Share based payment reserve 20 1,484,879 1,074,046
Foreign exchange reserve (1,971,084) (1,230,306)
Retained losses (29,465,536) (19,489,346)
9,964,927 20,271,062
The financial statements were approved and authorized for issue by the Board of Directors on 26 April 2016 and
were signed on its behalf by:
Philip Le�s Tim AllenCEO CFO Company Registra�on Number: 08188404
The accompanying notes are an integral part of these financial statements.
Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2015
CalledUp
ShareCapital
SharePremium
EquityConversion
Reserve
MergerReserve
ShareBased
PaymentReserve
ForeignExchangeReserve
Retained Loss Total
US$ US$ US$ US$ US$ US$ US$ US$
Equity as at 1 January 2014 475,845 16,765,333 8,967 1,712,666 609,935 314,167 (8,990,283) 10,896,630
Loss for the period(10,499,063) (10,499,063)
Share Based Payments 464,111 464,111
Conversion of conver�ble
debt‐
Issue of Ordinary shares293,334 21,706,681 22,000,015
Issue costs recognized in
equity(1,046,158) (1,046,158)
Other comprehensive loss
for the year(1,544,473) (1,544,473)
Equity as at 31 December2014
769,179 37,425,856 8,967 1,712,666 1,074,046 (1,230,306) (19,489,346) 20,271,062
Loss for the period(10,089,176) (10,089,176)
Other comprehensive loss
for the year(740,778) (740,778)
Total comprehensiveincome/(loss) ‐ ‐ ‐ ‐ ‐ (740,778) (10,089,176) (10,829,954)
Issue of Ordinary shares‐
Issue costs recognized in
equity‐
Share Based Payments 410,833 112,986 523,819
Equity as at 31 December2015 769,179 37,425,856 8,967 1,712,666 1,484,879 (1,971,084) (29,465,536) 9,964,927
Consolidated Statement of Cashflows
for the Year Ended 31 December 2015 The accompanying notes are an integral part of these financial statements.
Note
2015US$
2014
US$
Loss a�er taxa�on (10,089,176) (10,499,063)
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 10/30
Interest (income)/expense (net) 7 (220,783) 50,201Income tax credit (430,973) (530,487)Fair value movement and unrealized FX 170,130 (136,018)Deprecia�on of property, plant and equipment 10 75,494 77,809Amor�za�on of intangible assets 11 979,637 561,722Share‐based payments charge 6 525,876 464,111 Loss on disposal of property, plant and equipment 5 6,185 51,414Cash ou�lows from opera�ng ac�vi�es beforechanges in working capital (8,983,610)
(9,960,311)
(Increase)/decrease in trade and other receivables 900,028 1,866,378Increase/(decrease) in trade and other payables (144,780) (1,637,635)Cash used in opera�ons (8,228,362) (9,731,567)
Interest received 221,509 94,252Interest paid (726) (7,642)Income tax paid 203,590 (10,846)Net cash used in opera�ons (7,803,989) (9,655,803)
Purchase of property, plant and equipment (20,413) (70,016)Proceeds on disposal of property, plant and equipment ‐ ‐Investment in intangible assets (1,510,754) (1,910,771)Net cash used in inves�ng ac�vi�es (1,531,167) (1,980,787)
Issue of share capital ‐ 22,000,015Issue cost of shares ‐ (1,046,158)Proceeds from conver�ble debts ‐ 15,632Net cash generated in financing ac�vi�es ‐ 20,969,489 Net (decrease)/increase in cash and cash equivalents (9,335,156) 9,332,899
Cash and cash equivalents at beginning of period 17,401,774 9,561,462
Effect of foreign exchange transla�on on cash and equivalents (921,741) (1,492,587)Cash and cash equivalents at end of period 7,144,877 17,401,774
The accompanying notes are an integral part of these financial statements.
Notes to the Consolidated Financial Informa�on
1. Accoun�ng policies Basis of prepara�onThe principal accoun�ng policies adopted in the prepara�on of the financial statements are set out below. Thepolicies have been consistently applied to all the years presented, unless otherwise stated. These financialstatements have been prepared in accordance with Interna�onal Financial Repor�ng Standards, Interna�onalAccoun�ng Standards and Interpreta�ons (collec�vely IFRSs) issued by the Interna�onal Accoun�ng StandardsBoard (IASB) as adopted by the European Union (adopted IFRSs). The prepara�on of financial statements in compliance with adopted IFRSs requires the use of certain cri�calaccoun�ng es�mates. It also requires Group management to exercise judgement in applying the Group'saccoun�ng policies. The areas where significant judgements and es�mates have been made in preparing thefinancial statements and their effect are disclosed in note 2. The Group financial statements consolidate the financial statements of the Company and its subsidiaries (together
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 11/30
referred to as the Group). The parent Company financial statements present informa�on about the Company as a
separate en�ty and not about its Group.
Basis of consolida�onWhere the Company has the power, either directly or indirectly, to govern the financial and opera�ng policies of
another en�ty or business so as to obtain benefits from its ac�vi�es, it is classified as a subsidiary. The
consolidated financial statements present the results of the Company and its subsidiaries (the Group) as if they
formed a single en�ty. Intercompany transac�ons and balances between Group companies are therefore
eliminated in full.
The consolidated financial statements incorporate the results of business combina�ons using the purchase
method. In the consolidated statement of financial posi�on, the acquirees' iden�fiable assets, liabili�es, and
con�ngent liabili�es are ini�ally recognized at their fair values at the acquisi�on date. The results of acquired
opera�ons are included in the consolidated income statement from the date on which control is obtained.
Inter‐company transac�ons, balances and unrealized gains and losses (where they do not provide evidence of
impairment of the asset transferred) on transac�ons between Group companies are eliminated.
Going concernThe Directors have prepared a cash flow forecast covering a period extending 12 months from the date of
approval of these financial statements which shows that the Group will have sufficient cash to meet its debts as
they fall due over that period. blur is a disrup�ve and evolving technology company and uncertain�es exist in the
forecast as a result. The forecast contains certain assump�ons about the performance of the business including
growth in future revenue, both in project revenues and in premium services, the cost model and margins, and the
level of cash recovery from trading. In the next 12 months, the most cri�cal assump�ons are those concerning the
control of costs. The Directors are aware of the risks and uncertain�es facing the business as it embarks on its new
strategy but the assump�ons used are the Directors' best es�mate of the future development of the business.
A�er considering the forecasts and the risks, the Directors have a reasonable expecta�on that the Group has
adequate resources to con�nue in opera�onal existence over the period of the forecast. For these reasons, they
con�nue to adopt the going concern basis of accoun�ng in preparing the annual financial statements. However,
beyond the forecast period the Group will need either to substan�ally increase its revenues or take ac�ons to
ensure it remains sufficiently funded. As with any disrup�ve, evolving technology company there is always an
inherent risk over the ability of the Group and Company to con�nue as a going concern if forecasts are not met
and cash resources are not adequate. The financial statements do not include any adjustments that would result
from the going concern basis of prepara�on being inappropriate.
Func�onal and presenta�on currencyThe func�onal currency of the Company is Sterling (£). The presenta�onal currency of the Company is the US
Dollar ($). The Directors consider the US Dollar is the most appropriate presenta�onal currency.
Changes in accoun�ng policies and disclosures(a) New and amended standards adopted by the GroupThe Group has applied any applicable new standards, amendments to standards and interpreta�ons that are
mandatory for the financial year beginning on or a�er 1 January 2015. However, none of them has a material
impact on the Group's consolidated financial statements.
(b) New, amended standards, interpreta�ons not adopted by the GroupA number of new standards, amendments to standards and interpreta�ons to exis�ng standards have been
published that are mandatory for the Group's accoun�ng periods beginning a�er 1 January 2016, or later periods,
where the Group intends to adopt these standards, if applicable, when they become effec�ve. The Group has
disclosed below those standards that are likely to be applicable to the Group and is currently assessing the impact
of these standards.
· Annual improvements 2014 cycle (effec�ve date: 1 January 2016) ‐ improvements to various standards.
· IFRS 15, 'Revenue from contracts with customers' (effec�ve date:1 January 2016) ‐ this replaces IAS 18
Revenue, IAS 11 Construc�on Contracts and some revenue‐related Interpreta�ons. It establishes a new
five‐step model that will apply to revenue arising from contracts with customers. Under IFRS 15 revenue
is recognized at an amount that reflects the considera�on to which an en�ty expects to be en�tled in
exchange for transferring goods or services to a customer. The principles in IFRS 15 provide a more
structured approach to measuring and recognizing revenue.
· IFRS 9 'Financial instruments' (effec�ve date: 1 January 2018) ‐ this replaces most of the guidance of IAS
39 Financial Instruments: Recogni�on and Measurement. The standard introduces new requirements for
classifica�on and measurement, impairment, and hedge accoun�ng.
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 12/30
classifica�on and measurement, impairment, and hedge accoun�ng.· IFRS 16 'Leases' (effec�ve date: 1 January 2019) ‐ changes fundamentally the accoun�ng for leases by
lessees. It eliminates the current IAS 17 dual accoun�ng model, which dis�nguishes between on‐balancesheet finance leases and off‐balance sheet opera�ng leases and, instead, introduces a single, on‐balancesheet accoun�ng model that is similar to current finance lease accoun�ng.
Revenue Recogni�onRevenue represents the gross value of services provided to customers in respect of revenue earned, net ofdiscounts, sales taxes, accrued, and deferred amounts. There are two principal sources of revenue: Project revenueBeing revenue from projects that list on blur's marketplace, where the customer, in conjunc�on with blur, selectsthe service provider and a legally binding contract between blur and its customers is established (referred to as''kick‐off''). At this stage blur has assumed the principal contractual responsibility to deliver the agreed services,the delivery of the service has commenced, and project revenue recogni�on commences. Project revenue is recognized on either a �meline, or milestone basis. Timeline refers to the date the delivery ofthe service commences to the date it is completed. Milestone refers to specific performance targets within eachproject un�l comple�on. Under the project milestone method, the milestones inserted in the Statement of Work are broadly indica�ve ofthe stage of comple�on and reflect the value of work completed. In the case of milestone projects, the service provider and customer confirms the propor�on of costs incurred todate and the resul�ng cost to comple�on which gives the indica�on of the percentage of comple�on. This is doneon the pla�orm collabora�on area, Project Space, that is updated by the service provider, supported at periodend with addi�onal electronic confirma�on.Where a project has regular deliverables and is rela�vely short in dura�on, the project �meline is used todetermine the stage of comple�on. Where any element of a project is con�ngent upon either comple�on or specific milestones or deliverables, thecon�ngent element of the project is separately iden�fied and revenue recognized only when the con�ngentelement is completed. Where a project is delayed or suspended for whatever reason, the revenue recognized on a �meline basis isini�ally fixed to the date of suspension. Revenue will only be further recognized if the project is deemed to becommercially viable with an expecta�on that it will be realized in cash. Where the project is delayed and a new comple�on date established, the revenue is recognized over the longerperiod associated with the revised comple�on date. Where the project is suspended, no revenue is recognizedduring the period of suspension. Where a project is cancelled, the project is assessed as to the stage ofcomple�on. Blur will specifically reference the cancelled projects' Statement of Works, surveys of workperformed, and the propor�on of costs incurred in order to assess the amount of revenue to recognize. Cancella�on (previously Lis�ng fee) revenueBeing revenue from customers where a commenced project is cancelled and there is an expecta�on of collec�onof the cancella�on fee. The Cancella�on fee is a contractual charge when a customer lists a project thatsubsequently cancels. Foreign currencyThe func�onal currency of blur Group plc and blur Ltd is Pound Sterling, whereas of blur Inc. it is US Dollars. The presenta�onal currency is US Dollars ($), as the Group's management believe that in the future the majorityof revenues and ac�vity will be generated in US Dollars. This is consistent with prior years. The exchange rates used for transla�ng the statement of financial posi�on at 31 December 2015 was at a closingrate of £1 = US$1.4804 (2014: US$1.5632) and the statement of comprehensive income at an average rate ofUS$1.4804 (2013: US$1.6410). Foreign currency transac�ons are translated into the func�onal currency using the exchange rates prevailing at
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 13/30
the dates of the transac�ons. Foreign exchange gains and losses resul�ng from the se�lement of such
transac�ons and from the transla�on at the repor�ng period end exchange rates of monetary assets and liabili�es
denominated in foreign currencies are recognized in the income statement.
On consolida�on, exchange differences arising from the transla�on of the net investment in foreign en��es are
recognized in other comprehensive income and accumulated in a separate component of equity. Exchange
differences are recycled to profit or loss as a reclassifica�on adjustment upon disposal of the foreign opera�on.
Deriva�ve instrumentsThe Group uses forward exchange contracts to mi�gate exposure to foreign currency risks. Gains or losses from
u�lizing these instruments are recognized in the income statement in the period in which they occur.
Fair value hierarchyAll financial instruments measured at fair value must be classified into the levels below:
· Level 1: Quoted prices, in ac�ve markets.
· Level 2: Fair Inputs other than quoted market prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.
· Level 3: Inputs that are not based on observable market data.
Trade receivablesTrade receivables are amounts due from customers for services provided in the ordinary course of business and
are stated net of any provision for impairment. Impairment provisions are recognized when there is objec�ve
evidence (such as significant financial difficul�es on the part of the counterparty or default or significant delay in
payment) that the Group will be unable to collect all of the amounts due under the terms receivable, the amount
of such a provision being the difference between the net carrying amount and the present value of the future
expected cash flows associated with the impaired receivable. For trade receivables, which are reported net of bad
debt provision, such provisions are recorded in a separate allowance account with the loss being recognized
within administra�ve expenses in the statement of comprehensive income. On confirma�on that the trade
receivable will not be collectable, the gross carrying value of the asset is wri�en off against the associated
provision.
Cash and cash equivalentsCash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid
investments with original maturi�es of three months or less, and for the purpose of the statement of cash flows ‐
bank overdra�s or outstanding credit card balances.
Conver�ble debtThe proceeds received on issue of the Group's conver�ble debt are allocated into their liability and equity
components. The amount ini�ally recognized and a�ributed to the debt component equals the discounted
redemp�on value of the financial instrument, discounted at a deemed market rate of interest (the effec�ve
interest rate) and not the financial instrument's coupon rate. The deemed rate of interest u�lized in the
es�ma�on was compared to the rate of interest that was payable on a similar debt instruments that do not
include an op�on to convert.
Subsequently, the debt component is accounted for as a financial liability measured at amor�zed cost un�l
ex�nguished on conversion or maturity of the conver�ble loan. The remainder of the proceeds are allocated to
the equity reserve within shareholders' equity, net of income tax effects.
Share capitalFinancial instruments issued by the Company are classified as equity only to the extent that they do not meet the
defini�on of a financial liability or financial asset.
The Group only has one class of ordinary shares, denominated as £0.01 (2014: £0.01) ordinary shares, as set out
in note 15. The Company's ordinary shares are classified as equity instruments.
LeasesLeases where the lessor retains substan�ally all the risks and benefits of ownership of the asset are classified as
opera�ng leases. Rent paid on opera�ng leases is charged to the statement of comprehensive income on a
straight line basis over the term of the lease.
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 14/30
Property, plant and equipmentItems of property, plant and equipment are ini�ally recognized at cost.Deprecia�on is provided on all items of property, plant and equipment so as to write off their carrying value overtheir expected useful economic lives. It is provided at the following rates: Furniture, fixtures and fi�ngs ‐ 33% per annum straight line
Computer equipment ‐ 33% per annum straight lineExternal so�ware ‐ 33% per annum straight line
Intangible assetsThe development of the trading pla�orm is capitalized as an intangible asset. Development ac�vi�es involve aplanned investment in the development and enhancement of the trading pla�orm. The development expenditureof the pla�orm is recognized as intangible assets when the following criteria are met:
1. It is technically feasible to complete the development of the pla�orm so that it will be available for use;2. Management intends to complete and use or sell the pla�orm;3. There is an ability to use or sell the pla�orm;4. It can be demonstrated how the pla�orm will generate future economic benefits;5. Adequate technical, financial and other resources to complete the development of the pla�orm and to
use or sell the use of the pla�orm are available; and6. The expenditure a�ributable to development of the pla�orm can be measured reliably.
Expenditure being capitalized includes internal staff �me and cost spent directly on developing the tradingpla�orm. Capitalized development expenditure is measured at cost less accumulated amor�za�on andaccumulated impairment costs. The amor�za�on period is over 48 months on a straight‐line basis.
Each version released builds incrementally on the prior release (as opposed to being a completely new pla�orm)so no prior costs are wri�en off.
Taxa�onIncome tax expense represents the sum of the current tax and deferred tax charge for the year. Current taxes are based on the results shown in the financial statements and are calculated according to local taxrules, using tax rates enacted or substan�vely enacted by the repor�ng date. During the year, the current taxcharge is nil as there are tax losses for the year. R&D credits are recognized as and when eligible, within the taxcharge/credit in the financial statements in accordance with IAS 12. Deferred tax is recognized in respect of relevant temporary differences that have originated but not reversed atthe balance sheet date. A deferred tax asset is recognized to the extent that it is probable that future taxableprofits will be available against which temporary differences can be u�lized. Management has elected not torecognize the deferred tax asset due the lack of certainty of future profitability as the Group is s�ll in its earlystage of maturity. The deferred tax asset on shares and share op�on charges is affected by the difference between the grant price ofthe shares and share op�ons and the market price of the Company's shares at the accoun�ng year end. If themarket value of the shares at the date of exercise were to be lower than the market value at the account year endthe amount of tax relief obtained would be less than an�cipated in the deferred tax calcula�ons. Share‐based paymentIn accordance with IFRS 2 'Share‐based payments', the Group reflects the economic cost of awarding shares andshare op�ons to employees and Directors by recording an expense in the statement of comprehensive incomeequal to the fair value of the benefit awarded. The expense is recognized in the statement of comprehensiveincome over the ves�ng period of the award. Fair value is measured by the use of a Black‐Scholes model, which takes into account condi�ons a�ached to theves�ng and exercise of the equity instruments. The expected life used in the model is adjusted, based onmanagement's best es�mate, for the effects of non‐transferability, exercise restric�ons and behavioralconsidera�ons.
2. Cri�cal accoun�ng es�mates and judgementsIn preparing the financial statements, the Directors make certain es�mates and assump�ons regarding the future.
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 15/30
Es�mates and judgements are con�nually evaluated based on historical experience and other factors, includingthe expecta�ons of future events that are believed to be reasonable under the circumstances. In the future,actual experience may differ from these es�mates and assump�ons. The es�mates and assump�ons that have asignificant risk of causing a material adjustment to the carrying amounts of assets and liabili�es within thefinancial year are discussed below. Judgements and accoun�ng es�mates and assump�ons(a) Going concernAs set out in note 1 the Directors have prepared a cash flow forecast covering a period extending 12 months fromthe date of approval of these financial statements which shows that the Group will have sufficient cash to meet itsdebts as they fall due over that period. blur is a disrup�ve and evolving technology company and uncertain�esexist in the forecast as a result. The forecast contains certain assump�ons about the performance of the businessincluding growth in future revenue, both in project revenues and in premium services, the cost model andmargins, and the level of cash recovery from trading. In the next 12 months, the most cri�cal assump�ons arethose concerning the control of costs. (b) Revenue recogni�onRevenue is recognized on a gross basis, as our evalua�on and assessment of the indicators under IAS 18 supportsthe fact that blur is ac�ng as principal for the majority of projects. The factors that are considered and provedecisive in the conclusion of this assessment include the following:
· blur has the la�tude to agree the fee for each project;· blur has primary responsibility providing the services to a customer. · blur is responsible for the quality of the service delivery, delivered on �me, budget and to a sufficiently
high standard. This includes the management of the service delivery of the expert; and· blur facilitates both commercial terms and the project management for each project
Although blur passes on some of the credit risk onto the service provider it engages to deliver the services to itscustomers, it does not consider this is sufficiently persuasive in light of the other factors noted above to suggestthat accoun�ng for the transac�on as principal is not appropriate. blur recognizes revenue when the following criteria are sa�sfied:
a. The amount or value of the revenue recognized can be reliably measured, which occurs when the CustomerSuccess team, customer and service provider have agreed the contract value upon appointment of theservice provider. The measurement date for revenue recogni�on is from the date a service provider isappointed to the point that the performance has been completed.
b. It is probable that the economic benefits associated with the transac�on will flow to blur, when theperformance obliga�on is confirmed in the Statement of Works or project brief confirmed between thecontrac�ng par�es and to the extent that there exists a track record of successful progress of similarprojects. The transfer of economic benefits to blur must be fixed, determinable and reasonably assured.
c. The stage of comple�on of the transac�on at the end of the repor�ng period can be measured reliably, as setout in the detailed measurement guidance in sec�on 5 of this policy
d. The costs incurred for the transac�on and the costs to complete the transac�on can be measured reliably,with reference to the individual contract terms, Statement of Works and project revenue measurementguidance
Project revenueProject revenue is recognized on either a �meline, or milestone basis. Timeline refers to the date the delivery ofthe service commences to the date it is completed. Milestone refers to specific performance targets within eachproject un�l comple�on. There can be judgement required in es�ma�ng the stage of comple�on of a project andhence the value of the revenue to be recognized at a point in �me. Cancella�on fee (previously lis�ng fee) revenueThe Cancella�on fee is a mandatory charge when a customer, having listed a project decides to close their tradingaccount or not to select an expert. Judgement may be required to assess the extent to which the project is listedwhen the customer submits their project brief and opens a trading account. The lis�ng fee covers the customer'suse of their trading account and the cost of �me spent developing pitches and running them through theExchange process.
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 16/30
(c) Intangible assetsIntangible assets include the capitalized development costs of the trading pla�orm. These costs are assessedbased on management's view of the technology team's �me spent on projects that enhance the trading pla�orm,supported by internal �me recording and considering the requirements of IAS 38 'Intangible assets'. Thedevelopment cost of the pla�orm is amor�zed over the useful life of the asset. The useful life is based on themanagement's es�mate of the period that the asset will generate revenue, which is reviewed on a project byproject basis for con�nued appropriateness. The carrying value is tested for impairment when there is anindica�on that the value of the assets might be impaired. The impairment tests require assump�ons about futureevents which require management judgement. (d) Trade receivables ‐ provision for impairmentManagement has provided for all debts, individually, which are deemed doub�ul at their es�mated irrecoverableamount. Management apply their judgement on whether there is objec�ve evidence that trade receivablesshould be impaired. In 2015 the internal process for credit risk monitoring and management was enhanced toinclude detailed customer credit checks prior to projects being listed. The quality of credit worthy customers hasimproved over the period being a reflec�on of both improved credit control process and the transi�on toEnterprise customers. 3. Financial instruments ‐ Risk ManagementGeneral objec�ves, policies and processesThe overall objec�ve of the Board is to set policies that seek to reduce risk as far as possible without undulyaffec�ng the Group's compe��veness and flexibility. Further details regarding these policies are set out below. The Board reviews its monthly reports through which it assesses the effec�veness of the processes put in placeand the appropriateness of the objec�ves and policies it sets. The Group reports in US Dollars. All funding requirements and financial risks are managed based on policies andprocedures adopted by the Board of Directors. Forward contracts are used to control foreign exchange risk. The Group's criteria for entering into a forwardcurrency contract would require that the instrument must:
· be related to an�cipated foreign currency receipt;· involve the same currency as the foreign currency receipt; and· reduce the risk of foreign currency exchange movements on the Group's opera�ons.
i) Categories of financial assets and liabili�es The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows: · Trade receivables.· Cash and cash equivalents.· Trade and other payables.· Borrowings and conver�ble loan notes. Trade and other receivables are ini�ally measured at fair value and subsequently at amor�zed cost. Book valuesand expected cash flows are reviewed by the Board and any impairment charged to the consolidated statement ofcomprehensive income in the relevant period. Trade and other payables are measured at book value. The book value of financial assets and liabili�es equates totheir fair value. A summary of the financial instruments held by category is provided below: Financial assets 2015
2014
US$ US$
Cash and cash equivalents 7,144,877 17,401,774
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 17/30
Trade receivables ‐ due at repor�ng date 1,261,447 1,453,103
Trade receivables ‐ not due at repor�ng date ‐
‐
Gross trade receivables 1,261,447 1,453,103
Less: Provision for impairment (1,002,723) (620,001)
Trade receivables ‐ net of provision 258,724
833,102
Accrued Income ‐ not due at repor�ng date 303,343 614,124
R&D Tax Credit ‐ due at repor�ng date 955,772 766,631
Other receivables 47,745 293,659
Total 1,565,584 2,507,516
Trade receivables principally comprise amounts outstanding for sales to customers and are net of provision for
doub�ul recoverability. An impairment review of outstanding trade receivables is carried out at the period end
and a specific amount provided for. The average debtor days to se�le invoices are 60 days (2014: 102 days).
Trade receivables that are due at the repor�ng date and have been reviewed and impaired when the collectability
is considered unlikely.
R&D Tax Credit of $482,908 was received in January 2016.
Financial liabili�es
2015 2014US$ US$
Trade payables 660,669 603,616
Expert costs accrual 140,115 837,245
Other accruals 576,323 369,167
Deriva�ve financial liabili�es ‐ forward currency contract ‐ 136,018
Conver�ble loan notes 14,804 15,632
Total trade and other payables 1,391,911 1,961,678
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The
average credit period taken for trade purchases is 38 days (2014 : 31 days).
Cash and cash equivalentsCash and cash equivalents are held in Sterling, Euros and US Dollars and placed on deposit in UK banks and US
banks.
ii) Credit riskCredit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to
meet its contractual obliga�ons. The Group is mainly exposed to credit risk from credit sales. At 31 December
2015 the Group has net trade receivables of US$258,724 (2014 ‐ US$833,102).
The Group is exposed to credit risk in respect of these balances such that, if one or more customers encounter
financial difficul�es, this could materially and adversely affect the Group's financial results. The Group a�empts to
mi�gate credit risk by assessing the credit ra�ng of new customers prior to entering into contracts and by entering
contracts with customers with agreed credit terms. The Group also mi�gates the credit risk when the customer
for a project has not paid for the outstanding debt by withholding payment to the service provider associated
with the project
At 31 December 2015, the Group had no customers (2014: five customers) that owed the Group more than
$100,000 each and accounted for 0% (2014: 51%) of all the net receivables outstanding.
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 18/30
The analysis below shows the ageing of trade and other receivables and the movement in bad debt provision in
the year:
2015
2014
US$ US$
Up to 3 months 2,318,093 2,492,794
3 to 6 months 96,455 82,393
Above 6 months 153,759 552,331
Gross 2,568,307 3,127,518
Less: allowance for impairment (1,002,723) (620,002)
Net 1,565,584 2,507,516
Allowance for impairment: 2015
2014
US$ US$
Opening balance 620,002 918,359
U�lized during the year (435,439) (1,125,242)
Increase during the year 818,160 826,885
Closing balance 1,002,723 620,002
The provision for bad debts increased during the year as the Group's policy is to provide fully against receivables
due for more than 150 days. A corresponding provision is made against the service provider invoice or accrual to
reflect the reduced associated liability.
(iii) Liquidity riskShort‐term liquidity risk arises from the Group's management of working capital. It is the risk that the Group will
encounter difficulty in mee�ng its financial obliga�ons as they fall due. The Group's policy is to ensure that it will
always have sufficient cash to allow it to meet its liabili�es when they become due. To achieve this aim, it seeks to
maintain cash balances to meet expected requirements for a period of at least 30 days. The table below analyses
the Group's financial liabili�es by contractual maturi�es. All amounts disclosed in the table are the contractual
undiscounted cash flows.
2015
2014
US$ US$
Ageing of trade and other payables:
Up to 3 months 1,183,245 1,860,309
3 to 6 months 157,203 75,950
Above 6 months 36,659 84,985
Gross 1,377,107 2,021,244
Longer term liquidity risk is the ability of the Group to con�nue as a going concern. This risk is managed by the
prepara�on by the Directors of cash flow forecasts and the close management of expenditure.
(iv) Foreign exchange riskFunc�onal and presenta�onal currencyItems included in the financial statements are measured using the currency of the primary economic environment
in which the Company operates (the func�onal currency) which is considered by the Directors to be Pounds
Sterling (£). The financial statements have been presented in US Dollars. The effec�ve exchange rate at 31
December 2015 was £1 = US$1.4804 (2014: £1 = US$1.5632).
Foreign exchange risk arises when Group en��es enter into transac�ons denominated in a currency other than
their func�onal currency. The Group's policy is, where possible, to allow customers to se�le liabili�es
denominated in the customer's func�onal currency, being primarily Dollar or Pound Sterling.
The Group is predominantly exposed to currency risk on sales and purchases made from customers and service
providers based in the USA and the Eurozone. Sales and purchases from customers, experts and suppliers are
made on a central basis and the risk is monitored centrally. Apart from these par�cular cashflows the Group aims
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 19/30
to fund expenses and investments in the respec�ve currency and to manage foreign exchange risk at a local level
by matching the currency in which revenue is generated and expenses are incurred.
Forward contracts are used to control foreign exchange risk. Hedge accoun�ng is not applied in respect of these
deriva�ves.
The Group's criteria for entering into a forward currency contract would require that the instrument must:
· be related to an�cipated foreign currency receipt;· involve the same currency as the foreign currency receipt; and
· reduce the risk of foreign currency exchange movements on the Group's opera�ons.
At 31 December 2015 the Group had no commitments under forward foreign exchange contracts.
Fair value hierarchyAll financial instruments measured at fair value must be classified into of the levels below:
· Level 1: Quoted prices, in ac�ve markets.
· Level 2: Fair Inputs other than quoted market prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.
· Level 3: Inputs that are not based on observable market data.
The fair value hierarchy of financial instruments held at fair value is shown below:
31 December 31 December
2015 2014
US$ US$
Level 2 Level 2
Financial liabili�es
Deriva�ve financial liabili�es (fair value through profit or loss)
‐
136,018
As at 31 December 2015, the Group's net exposure to foreign exchange risk was as follows for those en��es with
Pound Sterling func�onal currencies:
US Dollar Euro Total
US$ US$ US$
As at 31 December 2015Trade and other receivables 303,337 30,850 334,187Cash and cash equivalents 4,490 101,540 106,030Trade and other payables (465,754) (54,273) (520,027)Net assets (157,927) 78,117 (79,810)As at 31 December 2014
Trade and other receivables 1,409,073 11,927 1,421,000
Cash and cash equivalents 7,960,729 39,465 8,000,194
Trade and other payables (193,034) (2,714) (195,748)
Net assets 9,176,768 48,678 9,225,446
The impact of 10% movement in foreign exchange rate of US$ will result in an increase/decrease of net
assets by $15,793 for 2015 (2014: $920,704). The average US$ exchange rate used for 2015 is 1.521
(2014: 1.641), with a closing rate of 1.4804 (2014: 1.5632).
(v) Capital managementThe Group's capital is made up of share capital, share premium, equity conversion reserve, merger
reserve, foreign currency reserve, share‐based payment reserve and retained losses totaling at 31
December 2015 US$9,964,927 (2014: US$20,271,062).
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 20/30
The Group's objec�ves when maintaining capital are:
· To safeguard the en�ty's ability to con�nue as a going concern, so that it can con�nue to providereturns for shareholders and benefits for other stakeholders; and
· To provide an adequate return to shareholders by pricing products and services commensurately
with the level of risk.
To meet these objec�ves, the Group reviews the budgets and forecasts on at least a quarterly basis to
ensure there is sufficient capital to meet the needs of the Group through to profitability and posi�ve cash
flow.
The capital structure of the Group consists of shareholders' equity as set out in the consolidated statement of
changes in equity. All working capital requirements are financed from exis�ng cash resources.
(vi) Capital risk managementThe Group's objec�ves when managing capital are to safeguard the Group's ability to con�nue as a going concern
in a vola�le and �ght credit economy.
The Group will also seek to minimize the cost of capital and a�empt to op�mize the capital structure, which
currently means maintaining equity funding and keeping debt levels to insignificant amounts of lease funding.
Share capital and premium together amount to $38,195,035 (see note 15).
Whilst the Group does not currently pay dividends it is part of the capital strategy to provide returns for
shareholders and benefits for other members in the future. However, the Group is planning growth and it will
con�nue to be important to maintain the Group's credit ra�ng and ability to borrow should acquisi�on targets
become appropriate and available.
Capital for further development of the Group's ac�vi�es will, where possible, be achieved by share issues or other
finance as appropriate.
4. Segmental analysisThe Group currently has one reportable segment, provision of services, and categorizes all revenue from
opera�ons to this segment.
The Group currently has four reportable categories which are:
1. project revenues ‐ for the provision of services from projects that list on blurs' marketplace, where the
customer accepts the bid from the expert supplier and a legally binding contract between blur and its
customers is established;
2. cancella�on fees (formerly lis�ng fees) ‐ where the project is cancelled a�er lis�ng and there is an
expecta�on of collec�on. The Cancella�on fee is a mandatory charge when a customer listed a project
and decided to close their trading account or not to select an expert;
3. premium services ‐ comprising wraparound support services for projects, including blur Manage Ultra,
blur Protect Advanced, blur Express, and blur Engage; and
4. subscrip�ons and licenses ‐ for the provision of �ered annual subscrip�ons to service providers to gain
access to high value project opportuni�es and market insights; the provision of access to blur's so�ware
Pla�orm and for the provision of subscrip�ons of blur Data, which analyses the business services
landscape including category trends, pricing and �meline forecasts.
Project RevenueCancella�on (formerly
Lis�ng Fees) Premium ServicesSubscrip�ons and
Licenses
2015 2014 2015 2014 2015 2014 2015 2014
US$ US$ US$ US$ US$ US$ US$ US$UK 805,798 939,597 20,589 752,458 ‐ ‐ 15,538 ‐
USA 854,289 1,303,606 259,390 745,811 12,913 ‐ 52,964 ‐
Rest of
World291,195 346,914 371,337 626,822 4,500 ‐ 7,457 ‐
Total 1,951,282 2,590,117 651,316 2,125,091 17,413 ‐ 75,959 ‐
The Group operates in three main geographic areas: UK, USA and Rest of the World. Revenue and non‐current
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 21/30
assets by origin of geographical segment for all en��es in the Group is as follows:
Revenue
Non‐current
assets
2015 2014 2015 2014
US$ US$ US$ US$
UK 841,925 1,692,055 2,778,440 2,394,434
USA 1,179,556 2,049,417 1,059 4,214
Rest of World 674,489 973,736 ‐ ‐
Total 2,695,970 4,715,208 2,779,499 2,398,648
The total loss from opera�ons of $10.7m predominantly relates to project revenue/cancella�on fees which make
up 97% of revenue. The vast majority of the costs of sales and overheads for 2015 relate to the head office in the
UK. Given this, the directors consider the split of costs across geographical segments would be arbitrary and
judgmental. Therefore, they consider repor�ng the loss by geographical segment could be mis‐leading in this early
phase of blur's development.
5. Loss from opera�onsThe opera�ng loss as at 31 December 2015 is stated a�er charging:
2015
2014
US$ US$
Amor�za�on of intangibles 979,637 561,722
Auditors' remunera�on:Audit fees ‐ Subsidiaries ‐ ‐
‐ Company 88,000 266,843
Non‐audit fees ‐ taxa�on advisory and compliance
services
‐ other assurance services ‐ interim
review
64,159 8,000
59,443
16,398
Bad debt provision 850,680 826,885
Deprecia�on of property, plant and equipment 75,494 77,809
Loss on disposal of property, plant and equipment 6,185 51,414
Staff costs (note 6) 4,106,832 4,268,210
Opera�ng lease expense ‐ buildings 445,447 471,260
Foreign exchange losses 265,345 810,910
Other administra�ve expenses 4,138,961 5,214,059
Total administra�ve and other expenses 11,028,740 12,624,953
6. Staff costsStaff costs (including Directors emoluments) incurred in the year were as follows:
2015US$
2014
US$
Wages and salaries 5,175,051 5,761,655
Social security costs 736,187 715,697
Share‐based payments 525,876 464,111
Gross staff costs 6,437,114 6,941,463
Less: Amounts capitalized:
Wages and salaries (1,351,391) (1,584,825)
Social security costs (139,354) (149,067)
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 22/30
(1,490,745) (1,733,892)
Less: Amounts a�ributable to Cost of
Sale
Wages and salaries (746,746) (822,636)
Social security costs (92,791) (116,725)
(839,537) (939,361)
4,106,832 4,268,210
Wages and salaries 3,076,914 3,354,194
Social security costs 504,042 449,905
Share‐based payments 525,876 464,111
Net staff costs 4,106,832 4,268,210
The average monthly number of permanent employees during the period was as follows:
2015
2014
Number Number Directors 5 6 Staff Administra�on 6 8 Customer Services 12 15 Marke�ng 5 6 Sales 11 11 Technology 23 26
62 72
2015
US$
2014
US$
Key management personnel
Emoluments and compensa�on 963,396 756,677
Employers social security 95,909 67,862
1,059,305 824,539
Share‐based payments 237,505 109,024
Company pension contribu�ons to
defined contribu�on schemes ‐ ‐
1,296,810 933,563
Key management personnel comprise of the Board of Directors and the Chief Financial Officer if he is not a Board
member.
During the year the Directors were awarded a total of 460,000 share op�ons (2014: 1,000,000) at a weighted
average exercise price of £0.2739 (2014: £0.66). No share op�ons were received or receivable in respect of
qualifying services under a long term incen�ve scheme. No share op�ons were exercised during the year.
Remunera�on disclosed above includes the following amounts paid to the highest paid Director:
2015 2014
US$ US$
Highest paid Director
Emoluments and compensa�on 304,200 270,765
304,200 270,765
Share‐based payments 133,194 5,641
Company pension contribu�ons to defined
contribu�on schemes ‐ ‐
437,394 276,406
In the year ended 31 December 2015 the highest paid Director received nil share op�ons (2014: 500,000). No
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 23/30
share op�ons were exercised by this Director in the current financial year (2014: nil).
7. Finance income and expenses
2015
2014
US$ US$
Finance income
Interest from bank
221,048
93,459
Interest from customers 461 ‐
221,509 93,459
Finance expense
Conver�ble loan note
interest
‐ (872)
Fair value loss on foreign exchange contracts ‐ (142,788)
Interest Payable (726) ‐
(726) (143,660)
8. Income tax
Analysis of the tax credit
No liability to UK corpora�on tax arose on ordinary ac�vi�es for the year ended 31 December 2015 nor for the
year ended 31 December 2014. However, a receivable cash tax credit in respect of the UK R&D ac�vity has been
recognized.
The R&D Tax Credit receipt from HMRC is likely to be received within a few months of the submission of the
corporate tax return for blur Limited. A liability for overseas tax has been recognized on ordinary ac�vi�es for the
year ended 31 December 2015 in respect of Blur Inc.
2015 2014
US$ US$
Tax credit ‐ current year 500,491 535,164
‐ prior year (49,751) 6,168
Overseas tax (19,767) (10,845)
430,973 530,487
Factors affec�ng the tax charge
The reasons for the difference between the actual tax charge for the year and the standard rate of corpora�on tax
in the United Kingdom applied to the result for the year are as follows:
2015 2014
US$ US$
Loss before tax (10,520,149) (11,029,550)
Tax credit at 20.25% (2014: 21.5%) 2,130,330 2,371,353
Non‐deduc�ble expenses (107,780) (110,838)
Accelerated (deprecia�on)/capital allowance (14,623) (16,027)
Higher tax rates on overseas earnings (9,759) (5,016)
U�liza�on of overseas tax losses ‐ ‐
Losses carried forward (2,017,935) (2,250,317)
Prior year R&D tax credit (49,751) 6,168
Current year R&D tax credit 500,491 535,164
Income tax credit 430,973 530,487
The Group has carried forward losses and accelerated temporary differences amoun�ng to US$22,479,579 as of
31 December 2015 (2014: $15,392,810). As the �ming and extent of taxable profits are uncertain, the deferred tax
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 24/30
asset of US$4,046,324 (2014: $3,078,562) arising on these losses (at 18% future tax rate) and accelerated �mingdifferences has not been recognized in the financial statements. 9. Loss per shareLoss per ordinary share has been calculated using the weighted average number of shares in issue during therelevant financial periods. The basis for calcula�ng the basic loss per share is as follows:
2015
2014
US$
US$
Weighted average number of shares for the purpose of earnings per share 47,092,851 39,391,172Loss a�er tax (10,089,176) (10,499,063)Loss per share (0.21) (0.27)
Due to the loss in the period the effect of the share op�ons was considered an�‐dilu�ve and hence no diluted lossper share informa�on has been provided. 10. Property, plant and equipment
Computer Equipment
Furniture, Fixturesand Fi�ngs Total
US$ US$ US$
COST
At 1 January 2014 178,617 117,036 295,653
Addi�ons 34,460 35,555 70,015
Disposals (73,006) (48,147) (121,153)
Exchange adjustment (5,462) (3,629) (9,091)
At 31 December 2014 134,609 100,815 235,424
Addi�ons 15,786 4,627 20,413
Disposals (40,104) (11,320) (51,424)
Exchange adjustment (6,775) (5,176) (11,951)
At 31 December 2015 103,516 88,946 192,462
DEPRECIATION
At 1 January 2014 73,995 47,608 121,603
Charge for period 45,316 32,493 77,809
Disposals (49,980) (37,811) (87,791)
Exchange adjustment (3,436) (2,125) (5,561)
At 31 December 2014 65,895 40,165 106,060
Charge for period 43,553 31,941 75,494
Disposals (35,788) (9,451) (45,239)
Exchange adjustment (4,603) (3,069) (7,672)
At 31 December 2015 69,057 59,586 128,643
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 25/30
NET BOOK VALUE
At 31 December 2015 34,459 29,360 63,819
At 31 December 2014 68,714 60,650 129,364
11. Intangible assets
Trading
Pla�orm
So�ware
Development
Total
US$ US$ US$
COST
At 1 January 2014 1,124,948 31,327 1,156,275
Addi�ons ‐ Internal Development ‐ 176,879 176,879
Addi�ons ‐ External Costs 1,651,681 82,211 1,733,892
Disposals ‐ (18,051) (18,051)
Exchange adjustment (58,403) (770) (59,173)
At 31 December 2014 2,718,226 271,596 2,989,822
Addi�ons ‐ Internal Development 1,461,605 ‐ 1,461,605
Addi�ons ‐ External Costs ‐ 49,149 49,149
Disposals ‐ ‐ ‐
Exchange adjustment (143,981) (14,386) (158,367)
At 31 December 2015 4,035,850 306,359 4,342,209
AMORTISATION
At 1 January 2014 195,602 ‐ 195,602
Charge for period 521,998 39,724 561,722
Exchange adjustment (34,903) (1,883) (36,786)
At 31 December 2014 682,697 37,841 720,538
Charge for period 878,241 101,396 979,637
Exchange adjustment (67,969) (5,677) (73,646)
At 31 December 2015 1,492,969 133,560 1,626,529
NET BOOK VALUE
At 31 December 2015 2,542,881 172,799 2,715,680
At 31 December 2014 2,035,529 233,755 2,269,284
12. Trade and other receivables
2015 2014
US$ US$
Trade receivables ‐ gross 444,797 1,453,103
Provision for impairment (186,073) (620,001)
Trade receivables ‐ net 258,724 833,102
Prepayments 231,045 274,164
Accrued Income 303,343 614,124
Other receivables 47,745 19,495
840,857 1,740,885
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 26/30
As at 31 December 2015 trade receivables of US$160,192 (2014: US$1,285,722) were past due but not impaired,
see note 3 for the Group's assessment of the exposure to credit risk.
All amounts shown under receivables are due within one year.
13. Trade and other payables (including deriva�ves)
2015 2014
US$ US$
CurrentTrade payables ‐ Service Providers 188,753 120,624
Trade payables ‐ Overheads 471,916 482,992
Other payables (8,012) 26,809
Deriva�ve financial liabili�es ‐ forward currency contract ‐ 136,018
Deferred revenue 364,167 ‐
Director's current account (note 19) 19,603 15,228
Accruals ‐ Service Providers 140,115 837,245
Accruals ‐ Overheads 301,595 327,130
1,478,137 1,946,046
Forward rate exchange contracts for deriva�ve financial liabili�es are not designed as hedging instruments.
The maximum exposure to credit risk at the repor�ng date is the fair value of the deriva�ve assets in the
consolidated statement of financial posi�on.
14. Loans and borrowings
2015
2014
US$ US$
Unsecured conver�ble loan note
Current 14,804 15,632
Total loans and borrowings 14,804 15,632
Book value approximate to fair value for the conver�ble debt and is stated at fair value at ini�al recogni�on and at
amor�zed cost subsequently.
The conver�ble loan notes (referred to as conver�ble debt II) were issued in 2011 with a coupon rate of 15% at a
total face value of US$78,010. The loan notes are either repayable in four years from the issue date at its total
face value, with interest accrued and payable as ordinary shares issued in the Company or can be converted at
any �me within two years into shares at the holder's op�on. The value of the liability component and the equity
conversion component were determined at the date the instrument was issued.
During the period to 31 December 2012 loan note holders converted their loan notes into ordinary shares of the
Company. Only one conver�ble loan note remains outstanding rela�ng to Peter Tahany. There is an ongoing claim
rela�ng to the provision of Mr Tahany's consultancy services from September 2009 to early 2010, but the Board
considers any risk of incurring costs rela�ng to this claim remote.
Face value
Equity conversionreserve
Fair valueof liability
US$ US$ US$As at 1 January 2015 15,632 8,967 24,599Accre�on in loan note liability value
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 27/30
Accre�on in loan note liability value ‐ ‐ ‐Exchange adjustments (828) (828)As at 31 December 2015 14,804 8,967 23,771
15. Share capitalShare capital allo�ed and fully paid up Ordinary shares of £0.01 carry the right to one vote per share at general mee�ngs of the Company and the rights
to share in any distribu�on of profits or returns of capital and to share in any residual assets available for
distribu�on in the event of a winding up. The shares are denominated in Pounds Sterling and translated at the
historic rate.
The table below shows the movements in share capital for the year:
Number of shares Share Capital $ Share Premium $
Movement in ordinary
share capital 2015 2014 2015 2014 2015 2014
Balance at 1 January 47,092,851 29,632,522 769,179 475,845 37,425,856 16,765,333
Issue of new shares ‐ 17,460,329 ‐ 293,334 21,706,681
Share issue costs ‐ ‐ ‐ ‐ ‐ (1,046,158)
Balance at 31 December 47,092,851 47,092,851 769,179 769,179 37,425,856 37,425,856
The Group has not issued any partly paid shares nor any conver�ble securi�es, exchangeable securi�es or
securi�es with warrants. The Group does not hold any treasury shares.
16. SubsidiariesThe subsidiaries of the Company, all of which have been included in the consolidated financial informa�on, are as
follows:
Name Principal ac�vity Ownership Country of Incorpora�on
blur Inc. Provision of marke�ng services 100%* United States of America
blur Limited Provision of services 100% United Kingdom
blur Exchange Limited Dormant company 100%* United Kingdom
blur Technology Limited Dormant company 100%* United Kingdom
blur Services Limited Dormant company 100%* United Kingdom
* These investments are held by blur Limited. 17. ReservesThe following describes the nature and purpose of each reserve within equity:
Share premium The amount of capital contributed in excess of the nominal value of each ordinary
share
Equity conversion reserve The amount of proceeds on issue of conver�ble loan notes rela�ng to the equity
component
Share‐based payment reserve Reserve for share‐based payments on op�ons granted during the period not yet
exercised
Foreign currency reserve Foreign exchange transla�on gains and losses arising on the transla�on of the
financial statements from the func�onal to the presenta�on currency
Retained earnings All other net gains and losses and transac�ons with owners (e.g. dividends) not
recognized elsewhere
Merger Reserve Amount subscribed for share capital in excess of nominal value when shares are
issued in exchange for at least a 90% interest in the shares of another company.
18. LeasesThe Group's leases consist only of opera�ng leases for office space. Non‐cancellable opera�ng lease rentals are
payable as follows:
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 28/30
2015 2014
US$ US$
Not later than one year 117,975 315,893
Above one year but not later than
five years 120,159 164,591
238,134 480,484
At 31 December 2015, the Group had no capital commitments in respect of property, plant and equipment.
19. Related party transac�ons
2015
2014
US$ US$
Consultancy fees1
191,646 196,920
Service fees 2 68,822 251,900
Other Consultancy fees3 25,137 9,467
License fees4 5,325 17,231
290,930 475,518
Out of above balances outstanding at year end in trade payables and accruals are $16,390 (2014: $43,906).
1 Consultancy fees of $191,646 (2014: $196,920) were paid to Revviva LLC, a company in which K Cardinale
has an interest. These were paid for K Cardinale's director services.
2 Service fees of $68,822 (2014: $251,900) were paid to CFPro Limited and Cambridge Financial Partners
LLP for accoun�ng and consultancy support, companies in which Barbara Spurrier has an interest.
3 Other consultancy fees of $25,137 (2014: $9,467) were paid to Meguro LLP, a company in which Robert
Wirszycz has an interest prior to him becoming a director.
4 License fees of $5,325 (2014: $17,231) were payable to Philip Le�s for the use of blur logo artwork.
Related party transac�ons are not included in compensa�on costs to key personnel as set out in note 6, with the
excep�on of payments to Revviva LLC in respect of K Cardinale's director services.
Revenue or other related receipts from key management personnel (including Directors):
2015
2014
US$ US$
Project Revenue1
1,521 ‐
1,521 ‐
1 Project revenue includes $1,521 (2014: $nil) in revenue recognized for projects carried out on behalf of
Le�s Estates Limited, a company in which Philip Le�s has an interest. The projects were carried out on an
arms‐length basis. There are no amounts outstanding to or from the company at the period end.
The following loans are due (to)/from Directors:
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 29/30
2015
2014
US$ US$
P Le�s:
Opening balance (15,228) 3,797
Expenses incurred on behalf of the Group (5,181) (19,765)
Exchange adjustments 806 740
Closing balance (19,603) (15,228)
The loans are interest free and repayable on demand.
20. Share‐based paymentsThe Company operates two op�on schemes, namely an unapproved op�on scheme and an Enterprise
Management Incen�ve (EMI) scheme. The share capital of the Company is denominated in Pounds Sterling.
Therefore, disclosures are presented in Sterling.
At 31 December 2015, the following share op�ons have been granted and are outstanding in respect of theordinary shares:
Exercise PriceRange
As at1 January
2015 Granted Cancelled
As at31
December2015
Finalexercisabledate Contractual life
£0.18‐£2.40 3,487,295 1,397,800 843,100 4,041,9954/2022‐12/2025 6.3‐10.0 years
£4.25‐£4.60 76,000 ‐ 50,000 26,000
9/2013‐12/2023 7.7‐8.0 years
£5.74‐£7.93 59,000 ‐ 47,500 11,500
1/2024
8.0‐8.1 years
3,622,295 1,397,800 940,600
4,079,495
Weightedaverageexercise price £0.78 £0.24 £1.24 £0.49
At the 31 December 2015, 4,079,495 (2014: 3,622,295) op�ons were in existence, 2,087,000 (2014: 1,727,350)
under EMI scheme and 1,992,495 (2014: 1,894,945) under unapproved scheme. The op�ons exercisable as at 31
December 2015 were NIL (2014: NIL). The contractual life is ten years and there is no cash se�lement of the
op�ons. The op�ons vests provided the employees remain in the service of the Company for a period of between
two and four years from the grant date.
The fair values of the op�ons are calculated using the Black‐Scholes method. Assump�ons used in this model for
the year ended 31 December were:
EMI Scheme 2015 2014
Fair value at measurement date £0.14 £0.91 Exercise price £0.18 ‐ £0.77 £0.66 ‐ £7.93 Expected vola�lity 29% ‐ 600% 112% ‐ 600%Expected life 4.00 Years 4.00 YearsWeighted Average Share Price at grant £0.24 £0.97Risk‐free rate 1.65%‐1.831% 1.5%‐2.25% Unapproved Scheme 2015 2014 Fair value at measurement date £0.10 £0.66 Exercise price £0.18‐£0.30 £0.66 Expected vola�lity 29%‐99% 600%Expected life 4.00 years 4.00 years
4/27/2016 Blur Group PLC | 2015 Final Results | FE InvestEgate
http://www.investegate.co.uk/ArticlePrint.aspx?id=201604270700084278W 30/30
Weighted Average Share Price at grant £0.22 £0.66Risk‐free rate 1.65%‐1.831% 1.50% The expected vola�lity of 29%‐600% was used for op�ons granted during the year. As the Company has onlytraded on the AIM market since 5 October 2012, the Company has insufficient historical data to calculate andhence the vola�lity of 29%‐600% is based on the implied vola�lity of a group of listed en��es that have similarcharacteris�cs and are in the same industry sector. 21. Events a�er the repor�ng dateThere are no disclosable events following the repor�ng date. 22. ControlThere is no ul�mate controlling party. 23. Pos�ng of Annual Reportblur Group plc's audited Annual Report and Financial Statements for the year ending 31 December 2015are available for you to download and review on blur's website at www.blurgroup.com/investors/#reports and willshortly be posted to shareholders. The Annual General Mee�ng of the Company will be held at 10.00 a.m. on 16 June 2016 at theoffices of blur Group plc, Eagle House, 1 Babbage Way, Exeter Science Park, Clyst Honiton, Exeter,Devon EX5 2FN.
This information is provided by RNS
The company news service from the London Stock Exchange END FR AKADPABKDFQB
Top Related