Brady Share Discussion Threads

[rivaldo] 04/2/2015 09:02

Great to see the new contract win for Aludium and the use of BRY's solutions by producers and manufacturers.

I saw BRY at their stand yesterday at the Cenkos show in London. Everything seemed positive and optimistic. I pressed on whether there would soon be news on further acquisitions, but of course couldn't get anything specific!

It's been two years since the last acquisition. Given that BRY now have a likely £7m-£8m cash pile I'd hope and expect another one soon.

And with results only just over a month away, which we know will be good, hopefully we'll see a run-up even without acquisition news.

[gargoyle2] 04/2/2015 04:58

With luck, we just need a bit of news to push us past that April 2014 high. Then we could be back up into the 90s pretty quickly imo.

[essentialinvestor] 03/2/2015 16:12

Owen, perhaps if the share price continues to go nowhere fast they may have a change
of mind, just IMV.

May be taken out before then, but that's only a speculative guess.

[owenski] 03/2/2015 14:02

I raised that issue with Gavin Lavelle a year ago at the investor event in London..... He listened and made the right noises but I took that as a NO.

In point of fact in percentage terms the div has been declining year on year being that its always a fixed 0.1p rise.

Anyways, re, the rest of the business, cant argue that its not pulling in the contracts so hopefully we'll see some good capital growth being that this certainly aint an income stock.

Mind you, I bought this and at the share price paid it was about 2.5% yield, so better than nought.

[essentialinvestor] 03/2/2015 13:04

It would help the share price if the dividend was a little more generous IMV.

[chazabs] 29/1/2015 15:08

Great thread so far. I'm also going to meet the senior management team at the Innovators and Investors Forum on 3rd of Feb, in London's Business Design Centre.

Would be a great opportunity to ask them questions on their presentations and understand what their plans might be over the next 12 months.

Any of you guys planning on going? The event is free to register, so if you want to join, here is the link:

[rivaldo] 21/1/2015 11:48

Nice plug today from the Private Punter in his newspaper column alongside a big article on ETO:



"One to watch

Brady, the Cambridge-based risk management company, has delivered a solid trading update which sees its cash position improving ahead of previous estimates. Having enjoyed strong contract wins and record license revenue, cash stood at £9.5 million at the end of 2014. CEO Gavin Lavelle sounded a confident note, where the company is expected to deliver pre-tax profits of £5 million for last year. Broker Panmure Gordon, which rates the stock a Buy, has upped its target price on the stock from 94p to £1.06 against the current 82p."

[rivaldo] 20/1/2015 10:00

Look forward to it hastings. Hopefully we'll get a breakout upwards from here any time now.

BRY will be presenting in London on February 3rd - I've registered to attend:



"Brady to brief investors in London after securing customer wins

15 January 2015 | 11:57am

StockMarketWire.com - Brady (BRY) (BRY.L) [LON.BRY], a leading global provider of commodity, energy and recycling software, will be briefing investors at a key event in London early next month.

The company has decided to attend the 2015 Innovators & Investors Forum being held at London's Business Design Centre on February 3.

The all day event is organised in partnership by Cenkos Securities and Shares Magazine and is also sponsored by AJ Bell Youinvest.

Last month Brady announced that two new customers have selected its solutions to support their business operations across the metals and energy space.

Gavin Lavelle, CEO of Brady, commented: "Brady is pleased to be able to provide market participants with a fast and reliable solution to proactively manage the demands for hedging commodity price risk.

"We are currently seeing pronounced interest in our cloud-based solutions across all asset classes. In particular for metal fabricators, delivering our solution for managing hedging and risk management in the cloud is ideal, combining speed of implementation, a high level of service and market-leading functionality".

The day will consist of an exhibition where visitors can talk directly to the senior management from all the companies at their stands and there will also be an extensive conference programme where the company presentations will take place.

The exhibition takes place from 9.00 a.m. to 6.00 p.m. with the conference sessions beginning at 9.45 a.m. and continuing until 5.30 p.m.

Investors can register now to come to the Forum for free at www.sharesmagazine.co.uk/events dpuf"

[hastings] 19/1/2015 15:20

Looking very good here, pencilled in for a chat with management on results day, so will write up thoughts.

[rivaldo] 19/1/2015 15:05

Got today's Panmure Buy note (cheers mate) with the upgrade to a 106p target - here's the opening summary (which doesn't even mention the cash pile):

"As we expected, Brady has delivered an in-line full year trading update. Licence sales in the year were strong – 15 new contracts were inked in 2014 – despite challenging underlying market conditions. We expect this momentum to
continue as Brady’s trading and risk management solutions play into both
trading volatility and increasing risk concerns within energy and commodities
markets.

The shares are trading on a FY 2015 EV/EBITDA multiple of 8.9x and
P/E of 14.1x, which looks great value for a market leader with strong sales
momentum, a growing international footprint and a robust balance sheet. We
maintain our Buy and raise our 12 month target Price to 106p (from 94p) to
reflect our base valuation year rolling over to FY 2015."

[rivaldo] 19/1/2015 12:03

New research note just out from Edison - this points out that "volatility, as we have seen recently, helps drive the sale of risk management solutions", which should continue even with commodity markets perhaps affecting trading solution sales.

Interesting to see comparator sector sales multiples of 5 times - this would see a £170m+ sale price for BRY against the current £67m m/cap....



Conclusion:

"Valuation: Growth supported by strong balance sheet

Net of the £9.5m cash, the shares trade on 12.1x our FY15 EPS, 1.6x EV/sales and 8.8x EV/EBITDA. The valuation looks attractive relative to the peer group and we note that all the other major ECTRM players have changed hands in recent years, eg Triple Point was sold in 2013 for 5x sales."

[techno20] 19/1/2015 11:25

Spot on Rivaldo.

£1.20 is my target exit price.

It'll be interesting to see what impact the volatility in the commodity markets have on Brady in coming months. You could argue budgets may be tightened, but from a glass half full perspective, greater volatility increases the needs for decent systems & controls.

Overall my perspective is on balance the impact will be limited, but time will tell.

[rivaldo] 19/1/2015 11:02

Cheers Techno20, good news.

I agree - 106p would in particular be extremely cheap for a predator, which is the endgame here imo. Currently I think they'd be happy to pay 120p-130p, but as the business grows and improves that figure will climb nicely.

[techno20] 19/1/2015 09:37

Panmure Gordon just issued a buy note and increased share price target from 94p to 106p. Decent % increase.

Would still look good value at that price IMV.

GLA

[welsheagle] 19/1/2015 08:22

19 Jan 2015 07:00:15


Brady plc


RNS Number : 4510C
Brady plc
19 January 2015







Brady plc ("Brady" or the Company")

Trading Statement for Full Year 2014



Highlights:

· Trading in line with market expectations

· Cash significantly ahead of expectations

· Record licence revenue recognised in period

· Secured 15 new contracts in 2014

Brady, the leading global provider of trading, risk management and settlement solutions to the energy, commodities and recycling sectors, is pleased to provide an update on trading performance for the full year to 31 December 2014.

Trading for the second half of the year has continued to be in line with expectations and as a result full year results are expected to be in line with market expectations. Cash at 31st December 2014 is £9.5 million, which is significantly ahead of market expectations

The Group secured 15 new contracts in 2014 including 6 cloud deployments.

Second half deals were transacted with some of the world's best known energy and commodity trading companies including:

· The world's largest nickel producer

· A cloud based Energy transaction with a major Australian bank

· A Risk Management solution for a leading aluminium producer

Deals were also geographically diverse including: our first deal in Korea, and cloud based deals in the Middle East, and Monaco. This underlines the increasing breadth of our business and our growing international stature.

The Group also delivered significant contracts to existing clients, enabling us to recognise record licence revenue.

Gavin Lavelle, CEO of Brady plc, commented: "I am delighted at the earnings growth across the group. Cash generation is also strong, underpinning an already robust balance sheet and providing healthy dividend cover. There is momentum across the business, successfully delivering projects to our clients and signing new customers around the globe in difficult market conditions.

We continue to have strong value propositions to meet the current and future needs of our clients.

I look forward to providing a more detailed commentary when we announce the Preliminary Results in the middle of March 2015."

[igoe104] 19/1/2015 08:01

Excellent stuff, you can only see this company going from strength to strength.

[glasshalfull] 19/1/2015 07:59

Agree Rivaldo...great trading performance. Delighted to be holding these.

Regards,
GHF

[rivaldo] 19/1/2015 07:41

Yep, excellent stuff - almost £10m cash now against the £66m m/cap.

The 2015 P/E ex-cash here is now only around 11 or 12 - possibly 30%-40% below fair value given the strong trading, and certainly low imo given the high recurring income, market leadership, expansion into new sectors and geographical growth.

[hastings] 19/1/2015 07:31

Nice update this morning cash generation particularly strong and far better than expected.

[igoe104] 16/1/2015 14:26

Yes it is a chunky client.

Trading statement should be out in the next couple of weeks, I expect forecast
upgrades in the statement, with all these new contracts.

[techno20] 15/1/2015 19:08

Chunky client....bodes well for imminent trading statement.

"Stratkraft is a leading company in hydropower internationally and Europe’s largest generator of renewable energy. The Group produces hydropower, wind power, gas-fired power and district heating and is a global player in energy market operations. Statkraft has 3600 employees in more than 20 countries"

[igoe104] 15/1/2015 14:10

Cheers gargoyle, because markets are garbage at the moment it goes by hardly unnoticed.