blur Group, founded in 2007, provides a platform for people buying and selling services. This can be anything from tech companies looking for project managers to launch new apps to supply firms looking for legal services. Its business model relies on taking a 20% cut of the project value as commission.
In a regulatory statement this morning, blur Group said an undisclosed wad of commission from a number of projects was essentially not going to materialise and therefore "recognised revenue for the full year will be substantially lower than previously expected."
It said (emphasis ours):
"... The board, following discussions with KPMG, has determined that a number of older projects started between late 2013 and early 2014, which have experienced delays, have shown a lower likelihood of completion.
As a result the recognised revenue for the full year will be substantially lower than previously expected. blur and its auditors are in the process of dealing with enquiries from the Financial Reporting Council? on recognition of these historical contracts which may impact the timing of the release of the results for the year ending 31 December 2014."
Traders are not happy with the company's prospects.
The stock is down 29.44% this morning and by over 86% across the year.
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