Brady Share Discussion Threads

[gargoyle2] 13/4/2015 16:15

BRY sponsoring this event. May give them some good exposure.

[aishah] 13/4/2015 12:44

BRY now in the Top Ten holdings(2.7%) in the MFM Techinvest Technology Fund.

[johnv] 01/4/2015 06:50

Aim shares can be included now.

[phosgene] 31/3/2015 23:05

Shows you how up to date I am. I thought that AIM stocks were excluded from ISAs. I shall go and read some literature.
You may very well have saved me a small amount of money and a large amount of heartache.

[johnv] 31/3/2015 22:46

Phosgene, if you are a British citizen you should have a isa account, where you can buy shares. I have nearly emptied my account into my and my misses isa accounts.

[phosgene] 31/3/2015 20:02

I am just looking at the tax year. I've got my CGT allowance maxed for the year so I will keep a weather eye here for the opportunity to buy / sell as 2015/16 progresses. I am interested in seeing how it progresses against the historical maxima which we are coming up against. Roll on the time when every day is a new all-time peak.

[igoe104] 31/3/2015 19:20

I won`t be selling any yet, I believe we have a lot more in the tank yet.

[techno20] 30/3/2015 09:26

Thanks Rivaldo, looks like plenty to play for yet. Have top sliced a few % recently, but in no hurry to sell the rest.

Pleased to see Lrm looking decent value too.

Techno.

[rivaldo] 30/3/2015 09:00

Cheers Gargoyle, sounds good. I like the CEO's comments:

"I am delighted by the interest shown already in our latest market offering. We already have some key names on board that are partnering with us to bring a world class solution to the market."

Edison have a new report just out - interesting that they say "Activity remains busy with the group close to signing another substantial deal"....

Nice conclusion too:



"Valuation: Growth supported by strong balance sheet

Net of the £9.6m cash, the shares trade on c 14.2x our FY16 EPS, 2.0x EV/sales and 10x EV/EBITDA. Despite the recent rally, the valuation continues to look attractive relative to the peer group and we note that all the other major E/CTRM players have changed hands in recent years, eg Triple Point was sold in 2013 for 5x sales."

[rivaldo] 25/3/2015 11:36

100,000 just bought at 102p.

[igoe104] 24/3/2015 10:31

Sorry off topic.

Snap all my family have used spire in the past, very impressive company.
(that's a long-term hold for me.)

just checked CHT, I`m very impressed at a first glance, very confident CEO and talk of big growth over the next couple of year`s. I`ll put it in my watch-list, cheers.

Could have over 45k coming my way via ACM sale. (two new companies to buy)

[rivaldo] 24/3/2015 10:14

Hi igoe. Agreed about the healthcare sector - well done with SPI (should have bought some myself seeing as my family have used their facilities enough!).

I recently bought some CHT - a new healthcare software IPO with a cheap P/E and big dividend. Large upside imo. Also have some long-term life sciences stuff like VEC, ODX and AKR, the last one having most of its m/cap backed up with cash, though still speculative.

[igoe104] 24/3/2015 09:41

It certainly a good stock to keep hold of, A fund is buying and BRY are picking up a lot of contracts.

PS

Rivaldo do you know any decent health companies, worth looking at, I`m doing well with SPI, I think its a good sector to invest into ?

[rivaldo] 24/3/2015 09:37

...and buying at 102p now.

[rivaldo] 23/3/2015 08:15

Great to see the first buying coming in at 100p today.

Excellent article hastings, cheers.

[hastings] 20/3/2015 12:09

A few late thoughts.

[cambium] 20/3/2015 10:11

That'll explain the larger than average volume then. Hitting new highs today.

[rivaldo] 19/3/2015 14:32

RNS just out - Investec have increased above 8%, buying another 750,000 shares or so and now owning 6.9m shares:



Since last August, Kestrel, Investec, Hargreave Hale and Octopus Investments have all increased their stakes here.

[rivaldo] 18/3/2015 10:31

Cheers igoe. I'm expecting another acquisition or two pronto. Here's the link:

[...]

More good comment here from the Chairman

Http ://www.proactiveinvestors.co.uk/companies/news/78292/big-picture-brady-sitting-comfortably-in-chaotic-commodity-market-78292.html

A small extract:

"Lavelle is optimistic for the future. Going forward, he points to three things: risk, recycling and renewables.

“Financing to resource firms is tight, so lenders want to know a business has its risks in check. Our systems allow companies to do just that.

“The other big drivers are recycling and renewable energy,” he adds.

“These are growing trends and will lead to greater volatility in commodity prices in general. We’re well placed to benefit from these changes.”

Cloud services – where the software is held remotely rather than installed on the customer’s own systems – is also an exciting area of growth.

Revenue from its Cloud-based platform more than doubled in 2014, with 30% of new licences being delivered via the Cloud last year.

Another major strength is the business operates globally. A total of 32% of revenues are now coming from outside Europe, it’s traditional heartland, with 23% from the Americas and 9% from Asia.

Today, house broker Cenkos reiterated its ‘buy’ recommendation, saying margins have been rebuilt despite the difficult sector backdrop, while cash conversion has improved considerably.

“Management reports a strong pipeline and the company is well positioned to trade successfully through what might be the bottom of the commodity cycle,” the broker said.

“Trading organisations and fabricators in the supply chain are seeing positive trading conditions. Regulations are stimulating demand for Brady’s products so net, we see overall favourable market conditions despite headlines about the commodity cycle,” it added.

The broker is forecasting a rise in EBITDA this year to £6.7mln and an increase in the full-year dividend to 2.0p from 1.9p."

[igoe104] 16/3/2015 14:41

Good write-up here.

Shares in commodity trading and risk management software firm Brady (BRY) had underperformed since the end of 2012, largely tracking the downturn in global metal prices. That was until late last year. Since then the shares are up over 40% at a two-year high, and the re-rating looks underpinned by better-than-expected results, record contract wins and a rapidly increasing cash pile.
Revenue grew by 13% at constant currency in 2014 to £31 million, or by 6% in sterling terms - 32% of sales are now made outside of Europe. And with cash profit margin back above the 20% target, driven by more licence revenue in the mix, pre-tax profit before one-offs - mainly a £2.5 million goodwill write-down on the value of Brady's two energy units in Switzerland and Norway - tripled to £3.2 million.

Chief executive Gavin Lavelle told Interactive Investor that Brady could get margins to 25% over the next few years, helped by a fledgling cloud service. Brady's highly-reliable Cloud offering means it can layer more software on the same infrastructure, so returns should continue to improve. It won six new Cloud contracts last year - 30% of all licence deals - and Cloud revenue more than doubled.

Overall, Brady won a record 20 new contracts in 2014, including deals with Norilsk Nickel, the world's largest nickel producer, and Korean electronics giant LG. The energy division did well, too, signing six new contracts - a big Aussie bank, US windfarm builder, Middle Eastern oil company and European energy producers - and four migrations to a higher-spec platform.

And with cash conversion back to historic norms, net cash increased by £2.4 million to £9.6 million. "Brady has a balance sheet dominated by cash and once again pays a progressive dividend which exceeds the market average," said Lavelle. "This compares favourably to some of our competitors, who are over leveraged with debt."

This is a decent warchest for possible acquisitions. Brady has been quiet on that front in recent years, but admits it is on the look-out. Buying in complementary software would beef up the product range, but it's also a highly fragmented market - Brady has a 3% share and is already catching the two biggest players with 15% and 8%. Acting as a consolidator again would also give the firm a chance to do even bigger deals.



"Overall, we (conservatively) expect to see high single digit annual revenue growth in the next few years, with strong licence and cloud revenue growth delivering around half a percentage point of EBITDA [cash profit] margin progression annually," says Panmure Gordon.

At 96p, Brady shares trade on 16.5 times Panmure's estimates for 2015, dropping to 14.5 times on 2016 numbers. Strip out the cash pile worth 12p a share, and those forward ratings fall to 14.5 times and 12.7 times respectively, modest for forecast average annual EPS growth of 12% over the next three years.

And the broker certainly believes the shares are cheap. "We think that Brady does not get the credit it deserves for delivering double digit organic revenue and earnings revenue growth in the face of challenging market conditions," writes Panmure. "Further progression towards the £100 million market capitalisation mark will hopefully attract an increasingly wider audience and promote a deserved re-rating of the shares."

"In our opinion, Brady has multiple investment attractions: a market leadership position, strong sales momentum across all underlying markets, growing contract sizes, upside margin pressure, strong cash generation, a progressive dividend and multiple growth opportunities. This surely deserves more than a FY 2015 EV/EBITDA of 10.5x; we increase our target price from 106p to 112p to reflect this rerating potential. Buy."

[rivaldo] 16/3/2015 10:01

Panmure increase their target price to 112p from 106p:



And Techmarketview's opinion is overall "encouraging":

[igoe104] 16/3/2015 09:39

Brady plc boss delighted with growth across the business

[igoe104] 16/3/2015 07:40

Yes totally the company has great momentum going forward, hopefully a in-coming upgrade £1.06 forecast surely has to be upped.

[rivaldo] 16/3/2015 07:28

Great results - and slightly ahead of expectations, with 5.31p EPS compared to consensus 5.24p.

Plus the 2.85p dividend is also ahead of 2.8p expectations.

The whopping £9.6m cash pile was also well ahead of forecasts:



The outlook is also very bullish, with a notable focus on potential acquisitions.

Congrats to the team.