Brady Share Discussion Threads

[marben100] 09/2/2012 13:04

There is more in an update from Edison:

I note that Edison have now lifted their 2011 EPS forecast significantly from 4.8p to 5.6p.

The 2012 forecast is also raised, reflecting the Navita acquisition, raising revenue from £20.5m to £27.8m and EPS from 5.4p to 5.6p. Though not on the cover of the note, the later tables also contain a 2013 forecast for revenue of £31.2m and 6.1p EPS.

This continues the past pattern of early forecasts being raised as time progresses - and generally the forecasts have been beaten by actuals.

That pattern means than often the shares look expensive (and I was out for a period as a result), but conservative forecasting has meant that actual P/Es turn out to be lower than anticipated. I have not regretted staying in since September 2010 and am prepared to "keep the faith" with Brady's management - though I am generally wary of companies that need to repeatedly raise funds to finance growth. It is good, though, that this fund raising will be done at a higher price than the last one and only at a modest discount to the market price.

Cheers,

Mark

[essentialinvestor] 07/2/2012 11:39

They have approx £10 million cash and are raising another £18 million.

Are Directors subscribing to the placing?.

[magnerita] 07/2/2012 11:16

Looking at the 2010 accounts, Brady pays 10x EV/EBITDA and 1.5x sales. Difficult to see how the business has done in 2011. This does justify Brady's comment on the cost savings potential as savings are required to make up for the multiple paid. It was private equity owned it seems assuming Statoil Venture, Ecapital and Viking Venture represent private equity.

This is the link to their Annual Report:

[owenski] 07/2/2012 08:46

Looks like BRY are building an empire and also progressing to a re-occurring revenue model, I'm still watching, am finding it attractive but would like to see how the figures work a lot clearer. They've jacked the m,cap by almost 50% come March. Hope it all works out nicely and beds in. Hopefully the liquidity might be addressed and make these more attractive to deal in.

[apad] 07/2/2012 08:37

As someone who is always worried about companies that grow by buying companies.
Willing seller and willing buyer - both think they have done a good deal but only one is right.
I looked at the board composition to see if they were accountant/management dominated.
They're not.
Impressive credentials.
I suspect that holders will have to take this on trust.
Still watching.
apad

[magnerita] 07/2/2012 07:54

Some sizable steps by the group. Difficult to see what Navita adds given the level of disclosure. Good to see there are significant cost synergies with Viz upon realisation. The 25% headcount reduction at Brady Energy is also the only number mentioned in the release apart from the transaction price.LEt's see how this news is going to be digested as i feel there must be some participants around who are better informed.

[owenski] 24/1/2012 07:13

Interesting company, but I've always found it difficult to read their figures

[apad] 23/1/2012 18:01

More sells again today EI, despite contract win news.
apad

[essentialinvestor] 23/1/2012 09:17

APAD - suprising that organic revenue is just 10% ahead
as per the recent statement.

[apad] 19/1/2012 13:33

Seems to be some consistent net selling that is not moving the price down - just looking at ADVFN Trades.
Any interpretation?
apad

[contrarian2investor] 17/1/2012 21:20

hastings, great link.

Then next stage for BRY is to get above the market cap of £50m (approx 93p) and it will then be on the radar of additional institutional investors. Following which it should steadily climb to £1 and above during 2012.

[apad] 17/1/2012 09:07

The chat with directors is interesting.
apad

[essentialinvestor] 17/1/2012 08:58

Yes I'm on their website at the moment - 1.4 pence a share !!!

[apad] 17/1/2012 08:53

Check this out, EI.

apad

[essentialinvestor] 17/1/2012 08:42

Do they pay any dividend?, nothing paid at the half year
from what I see.

Answered my own question 1.4 pence a share, does not appear to even cover
the current spread - however your not buying this for income!.

[apad] 17/1/2012 08:39

Me too folks - on my watch list. Lot of shares traded before the statement.
Looked to buy before the statement but monies not in place until today :-(
I particularly note their stated conservative policy on booking orders as income.
apad

[essentialinvestor] 17/1/2012 08:32

c2i it's a solid little company and have traded it twice previously.

May be worth looking at on a bad day, not the day after a trading statement.

[contrarian2investor] 16/1/2012 22:17

BRY is my tip for 2012, so I am pleased to see that today's data, has finally brought them to the attention of new investors.

EssentialInvestor did today's data pique your interest?

[marben100] 16/1/2012 16:12

See

FY11 EPS 4.8p
FY12 EPS 5.4p

Unchanged following today's announcement, so same as at March 2011.

[essentialinvestor] 16/1/2012 13:42

Anyone have the EPS forecasts for this year and next?, thanks.

[strollingmolby] 16/1/2012 13:28

Lovely update this morning to see BRY threatening a breakout if the price holds above 80 at the close.

70% revenue growth gives ~£18.9m for the year, VRM (now Brady Energy) is proving to be a great acquisition at the price paid (£9.6m in cash, funded by placing at 59p in Dec-10), and another contract win announced separately.

Y/e cash of £10.5m (or 19p per share) also solidly underpins the price here.

Great update!

SM

[cyberian] 21/12/2011 10:09

4 new contracts this month with the HK one announced on 19th probably being the most significant due to the link into China (metals/commodities etc). However, the one today could open-up a significant area of growth for Brady into the retail power supply sector. Apparently there appears to be a strong interest from perhaps an Institution to buy shares at around 75p...hence the recent largish blocks going through recently at that price. The shares appear under-rated at present but with next year likely to be very un-predictable in many areas, Brady is making excellent progress as companies better organise and control their costs etc. Plus greater emphasis from Regulators and demand on adequate software systems from Auditors should drive greater use of Brady's offerings.Cash held buy Brady must be growing and one hopes that a sensible cash acquisition will help the company grow even faster...their management team has recently been strenghtened and that should draw some further comfort going forward.