Brady Share Discussion Threads

[cyberian] 15/9/2011 15:38

Earnings of 4.8p eps forecast for 2011, and 5.4p in 2012...so maybe they can/will increase the dividend a little more as the cover is 4x and 5x respectively. The interesting issue is that the UBS fraud/over-trading saga through "Exchange Trading Funds" (alledgedly) announced today, may see much more required by the regulators than seen currently. The latter has been increasing recently but a required move away from internal software systems to credited third party providers may play to Brady's advantage big time. Understand UBS had been solicited by Brady but told that they (UBS) were happy with their internal control systems...yep!

[theophilus] 05/9/2011 08:30

Full report

[theophilus] 05/9/2011 08:29

Financial Highlights:
· Sales revenue up 91% to £8.84 million (H1 2010: £4.63 million) and like-for-like revenue growth of 11%

· Recurring revenues up 168% to £4.78 million (H1 2010: £1.78 million) now comprising 54% of total revenue (H1 2010: 38%)

· EBITDA up 127% to £1.24 million (H1 2010: £0.55 million) and operating profit up 54% to £0.55 million (H1 2010: £0.35 million)

· Earnings per share up 20% to 1.37p per share (H1 2010: 1.14p per share)

· £10.4 million of free cash at 30 June 2011 (equivalent to 19p per share) and no debt



Operational Highlights:
· Successful integration of the Viz Risk Management acquisition (since renamed as Brady Energy);

· Significantly stronger market position - Brady is now the largest energy and commodity trading and risk management software company in Europe and the largest in metals globally (source: Commoditypoint)

· Client base increased to 150 globally

· Six significant new licence contracts signed in the first half and nine in the year to date. This compares with four significant new licence contracts signed in H1 2010 and ten in FY 2010

· Three contracts signed in APAC including the Group's first soft commodity clients in North America, Asia and North Africa

· Fifteen new installations

· Continued product enhancements including a web based application for real-time power portfolio optimisation, a collateral management solution to monitor counterparty risk and enhanced cross-asset risk modelling



Paul Fullagar, Chairman of Brady plc, commented:



"The Group has delivered strong growth in revenues and profitability in the first half of 2011 compared to 2010 and in continuing challenging economic conditions. I am also pleased to report a swift and successful integration of the recent Brady Energy acquisition and am delighted to report that it is already performing above our initial expectations.



"The increase in recurring revenues to 54% of total revenue gives us more confidence in our outlook and reduces risk of volatility in earnings. The growing client base provides a solid and diversified foundation to our business. We continue to retain a very strong balance sheet position, dominated by cash, and with no debt. To complement the anticipated continued growth, the Group will continue to look for further opportunities to enhance its product and customer base through selective acquisitions."

[davidosh] 02/9/2011 12:01

Well the forward outlook should be very positive given all the recent contract announcements. It is all about the revenues that build on from existing plus new contracts.

[magnerita] 02/9/2011 09:37

results due on monday - not sure to what extent they can surprise given their already positive pre close trading update.

[cyberian] 17/8/2011 22:27

Yet another contract today and understand that this is a very significant one that should further reinforce further momentum of deals in the sector.

[magnerita] 15/8/2011 09:12

let's hope so as it is indeed very quiet on this board. I believe they will be keen to announce another acquisition by the end of the year. Scale matters as well as having a sizable cash position in the software world.

[cyberian] 15/8/2011 09:01

Another significant contract announced by Brady on their web-site this morning with Hedge Fund out of LA Calif. with access from Monaco and other areas as needed. We should get a good up-beat comment going forward with results in early September by CEO Lavelle.

[cyberian] 02/8/2011 11:45

Hopefully the company will use its cash balance of over £10 million in their next acquisition as they are clearly generating strong cash-flow from existing/new contracts and maintenance contract extentions. There are bound to be some selective names out in the market that have a client base that would compliment Brady's and provide those clients with a broader product/intellect resource to our mutual benefit. Building the client base will help earnings growth and believe that the recent Institutional support will be looking for a further appreciation in their investment. There is a reasonable chance that we could see the share price ratchet-up above 100p over coming months as volatility in the sector covered by Brady shows no sign of abating and regulatory compliance with customers remains vigorous and necessary.

[cyberian] 25/7/2011 11:30

No posts here for nearly 3 months but then the faithful understand the fundamentals and can only hope that the company get a wider audience/fan base soon. It appears to be on the radar of a few bigger investors evidenced by some interesting blocks going through the market recently, the last being a 280,000 purchase a few days ago at 78p. The recent contract flow is good and the strong maintenance contracts will help cash-flow and support other developments. The company's recent 1H update was encouraging, and cash well over £10 million with no debt is yet another positive. I sense that if we can get above recent highs in the mid 80p range a move beyond 90p will attract the needed wider interest and feed improved contract flow as global coverage is now outstanding, and potential customers will see quality of companies/ organisations etc. engaging the Brady software.

[davidosh] 07/5/2011 01:02

LOL....that is the second time Chingman has followed you over with a link to Stockopedia ! Either you have a stalker or more likely Chingman is employed to provide links to all their company stories and never looks in detail at any boards. Not to worry...twice is better than nothing at all !

[marben100] 06/5/2011 21:25

Why do I get the feeling that some people don't read what's already been posted on the thread? :0)

Or do I have an echo?

Mind you, given how quiet this thread is, I don't suppose it really matters. :0)

Mark

[chingman] 06/5/2011 11:53

Brady writeup here-

[marben100] 05/5/2011 19:15

I have now posted a write-up of the AGM here:

[magnerita] 16/4/2011 11:18

What a strong week! Has someone seen any reason for this?

[chingman] 24/3/2011 19:38

Interview with Gavin Lavelle-

[marben100] 24/3/2011 17:20

Nice interview with (and terrible photo of :0)) Gavin Lavelle here:

Cheers,

Mark

[marben100] 19/2/2011 12:23

Liquidity is poor, management ability is excellent IMO. They have turned a stagnant business round very successfully over the last 3 years and have consistently beaten forecasts. On debt you can DYOR by checking the accounts and recent announcements (you should do this anyway before considering an investment).

[manuel labour] 19/2/2011 08:14

Interested in a small go after a fund I hold highlighted this.

Comments on share liquidity, debt, and management ability please.


No experience with micro caps.



Cheers for any help.

Prop

[magnerita] 07/2/2011 11:04

The shares continue to perform well on the recent newsflow. Today's adoption release is also positive, although i could not find the release when they had announced Alcan as a customer. Hopefully, there are more modules or locations at Alcan, where Brady can implement.

[davidosh] 24/1/2011 10:18

There is presumably an Xstrata contract still to come for their Canada operations if the list in the RNS is to be followed.

[magnerita] 24/1/2011 10:11

Another nice contract win/extension. They aim for 16 contract wins a year according to the Edison note, so Jan is already shaping up nicely.

Let the re-rating continue.

[marben100] 21/1/2011 10:58

Edison note out yesterday:

Taking the figures at face value, one would have to be concerned that revenues are being built at the expense of EPS, i.e. "empire building". Acquisition led growth is a potentially risky strategy, but I think our management has the nous to pull it off. Hope to see the EPS forecasts beaten - which concerns me more than short-term share price movements (though, of course, it's always nice to see a paper gain :0)).

Cheers,

Mark

[marben100] 05/1/2011 21:17

Happy New Year!

I was at the EGM and asked about the scale of the fund raising. The general plan is to continue the acquisition strategy, aiming for one per year. These extra funds will help maintain a warchest. There is a pipeline of targets the Board is looking at.

Not entirely happy, but the Board has delivered so far, so I'm prepared to give 'em the benefit of the doubt.

Cheers,

Mark