Afternoon Death Bed recap: BLUR Group

For those following on from Thursday, 22 May 2014 Morning Mumble: (PM Edition) For those following Blur Group (BLUR) and Friday, 23 May 2014 Morning Mumble (Very brief): In light of the "recommended" offer for MOG Mediterranean Oil & Gas plc by Rockhopper Exploration plc. & Blur Group (I was right). 

Today's interims may just be the true turnaround of Blur's company rot, Unaudited Interim Results. To quote: "Blur Group completed its $21m fundraise (net proceeds after costs) in June which funds the Company through to profitability and enables the continued acceleration of new customer acquisition, technology development and regional expansion into Asia. The better than planned 1H 2014 EBITDA of $(3.995)m reflects the management's tight focus on achieving profitability."

So it raised $21m burnt $6 and is left with $24.4M excluding liabilities which ironically is almost identical to the "net cash generated from operations of (5,586,050). The brackets aren't a typo, that's a negative. Quite why anyone would have held this stock long is beyond me. Apparently J O Hambro Capital Management Limited disagrees upping their holdings. What is apparent is there is some scale to the revenues, albeit the EBITDA isn't exactly something to brag about. Nil or negative cashflow from operations doesn't exactly tick a box either.

What is interesting is the growth and with this in mind the ideology of Blur Group might just become enticing to a major whom has the cash and scalability to make the presence felt. For this reason I'm reviewing Blur for a possible long. The stocks off its July lows of a tad under 60 pence those holding less than 2 months will have done well. Where next for BLUR....if they can get to cashflow positive (and profit) within their targets it'll be a win, if not expect a further placing. currently its a higher risk long, but not for any widows or orphans.

Atb Fraser

Edited for some typo's