Brady, the leading global provider of energy, commodity and recycling software is pleased to provide a trading update for the half year to 30 June 2016.
The Group is pleased to report that trading is in line with management’s expectations. Revenues are 4% ahead of last year (including revenues from the acquisitions). The impact of ongoing cost cutting exercises has resulted in a return to profitability. Net Cash at 30 June 2016 is in excess of £6 million. This is against the background of continuing difficult market conditions in the commodity sectors in which our clients operate.
The impact of the weakening of Sterling following the referendum has been marginally positive in the six months to 30th June as foreign denominated revenues exceed foreign denominated costs.
Nine new contracts were signed in the period, seven of which are Cloud deployed and are distributed across our three business lines. Seven of these deals were signed in the Americas. The ability to offer cloud deployed solutions is becoming a key differentiator from the competition. Our cloud solutions allow customers a cost efficient and quickly deployed alternative to traditional client installed models.
Major market leaders that have gone live during the period include: the world’s largest nickel producer; a major Europe-wide power and gas utility adopting Brady’s Cloud infrastructure; a major European power utility; a world leading industrial group, focussed on gases, technologies and services for industry and healthcare.
Gavin Lavelle, CEO of Brady plc, commented:
“Our Cloud strategy is clearly yielding results and is a key differentiator in our market and increasingly our new deployments are cloud based. I am delighted to see the improvement in recurring revenues and profitability. With cash on the balance sheet and no debt, we are uniquely placed in our industry to provide great service to our customers and enjoy their support in the marketplace. I look forward to providing a more detailed commentary in the Interim Report.”
Full details of the Group’s financial performance for the period will be provided in the Interim Results, which are expected to be announced on 5th September 2016.