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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Brady Plc | LSE:BRY | London | Ordinary Share | GB00B0188P35 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 18.20 | 17.40 | 19.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMBRY
RNS Number : 0454Q
Brady plc
07 September 2017
7th September 2017
Brady PLC
("Brady", the "Company" or the "Group")
INTERIM RESULTS
For the six months to 30 June 2017
Brady plc, the leading global provider of trading, risk management and settlement solutions to the energy, commodities and recycling sectors, is pleased to announce its interim results for the six months to 30 June 2017.
Operational Highlights
The business continues its transition from a one-off licence revenue model to a recurring revenue model;
-- Four new licence deals signed on a recurring revenue basis in H1;
-- Two new energy licence deals signed following strategic decision to build connectivity to the important renewables sector via the Irish Single Integrated Market ("I-SEM");
-- Recurring revenue represented 68% of total sales in H1 (H1 2016: 60%).
Outlook
-- Full year results expected to be in line with market expectations; -- Visibility over 93% of expected full year revenue; and -- Cost base in line with management's expectations to the half year.
Financial Summary
(Unaudited) (Unaudited) (Audited) 6 months 6 months 12 months to 30 June to 30 June to 31 Dec 2017 2016 2016 GBP'000 GBP'000 GBP'000 ------------- ------------- ------------ Revenue 13,182 14,758 30,269 Recurring revenue 9,027 8,914 18,906 EBITDA before exceptional items (880) 2,043 4,527 Operating result before exceptional items (2,902) 123 533 Dividend paid (pence nil nil nil per share) Adjusted earnings per share (pence) (1) (2.49) 1.05 2.40 Basic earnings per share (pence) (3.97) (0.32) (2.23) Cash 5,038 6,402 7,343 ------------- ------------- ------------
(1) Adjusted earnings per share, as calculated by external analysts, are based on the profit after tax adjusted for acquired intangible assets amortisation, share based compensation, exceptional items and normalised tax.
Ian Jenks, Executive Chairman, commented:
"We have continued to take actions this year to move the business towards a solutions model focussed on growing recurring revenue to improve the quality of our earnings. Brady successfully secured a number of recurring revenue contracts during the period, and I am pleased to report that recurring revenue now represents 68% of total sales.
Whilst our H1 results reflect the natural consequence of our transition process away from the legacy licence model, the actions we have taken in the first half of the year coupled with the actions we will undertake in the second half will allow the business to scale efficiently and deliver significant improvements in profitability in 2018 and beyond.
With a high visibility of over 93% of our full year revenue and control of our cost base we continue to expect full year results to be in line with market expectations."
For further information please contact:
Brady plc Ian Jenks, Executive Chairman Telephone: +44 (0)1223 Martin Thorneycroft, Chief 479479 Financial Officer Cenkos Securities Telephone: +44 (0)20 Ivonne Cantu 7397 8900 Alex Aylen (sales) Redleaf Communications Charlie Telephone: +44 (0)20 Geller Sam Modlin 7382 4730
About Brady
Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global commodity and energy markets. Brady combines fully integrated and complete solutions supporting the entire commodity trading operation, from capture of financial and physical trading, through risk management, handling of physical operations, back office financials and treasury settlement, for energy, refined, unrefined and scrap metals, soft commodities and agriculturals.
Brady has 30 years' expertise in the commodity markets with some 400 customers worldwide, who depend on Brady's software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world's largest financial institutions, trading companies, miners, refiners and producers, recycling companies, scrap processors, tier one banks and a large number of London Metal Exchange (LME) Category 1 and 2 clearing members and many leading European energy generators, traders and consumers.
For further information visit: www.bradyplc.com
Brady plc: Twitter/Facebook/LinkedIn
CHAIRMAN'S STATEMENT
2017 to date has been a year of necessary transition and as expected there are some short term costs associated with this transition.
At last year's Interim Results, Brady announced plans to review its organisational structure in order to:
-- Improve earnings visibility by changing its focus from one-off licence deals to a recurring revenue model;
-- Focus on expanding Brady's Energy products to the rest of Europe though initiatives such as Irish Single Integrated Market connectivity; and
-- Deliver products based on microservices supported by the Brady Framework
During the period, recurring revenue increased to GBP9.0 million from GBP8.9 million, and I am pleased to report that recurring revenue now represents 68% of total sales, with high visibility of over 93% of our full year earnings. Reflecting the strategic decision to focus on recurring revenue, one-off licence revenue decreased to GBP0.9 million from GBP1.5 million in the prior period, and service fees reduced to GBP3.2 million from GBP4.3 million.
The transition from upfront one-off fees to predictable recurring revenue over the life of a contract means that, as we anticipated, our results for the first half are down on the previous period. During this year of transition, we expect that the business's legacy seasonal weighting towards H2 will prevail but that once transitioned the H1 and H2 split will be more evenly weighted.
During the first half of the year market conditions have continued to be challenging in the energy and commodity trading sectors. This combined with our transition process means that our profit before exceptional items and tax decreased by GBP3.0 million to a loss of GBP2.9 million (from a profit of GBP0.1 million) during the first half of the year. Adjusted EBITDA decreased from GBP2.0 million to a GBP0.9 million loss, with GBP1.6 million of the decrease attributable to the reduction in revenue to GBP13.2 million. A further GBP1.2 million is due to an increase in the cost base resulting from weakness in Sterling in 2017 compared to the corresponding period in 2016. Our loss before tax increased from GBP0.1 million in H1 2016 to GBP3.5 million in H1 2017. Cash at 30 June 2017 was GBP5.0 million (2016 - GBP 6.4 million).
Recurring revenue contracts
Brady will receive GBP3.2 million over the life of four new licence contracts thanks to the recurring revenue model now implemented. Under the former one-off licence model, the revenue recognised in H1 would have been approximately GBP1 million more than reported. However, under the recurring revenue model Brady will now benefit from a series of contracted payments over a number of years from these deals. Brady recognised GBP0.1 million in (mainly service) revenue in H1 and will recognise a further GBP0.6 million from these licence deals in H2 and GBP0.5 million annually thereafter.
Energy products
Two of these four recurring revenue contracts were signed as a result of our strategic decision to invest in our Energy products and to increase our exposure to the renewables sector, and in particular, building connectivity to the Irish Single Integrated Market ("I-SEM"). One of these contracts was with a new customer, and one is an existing customer. Brady expects to receive GBP1.4 million over the life of these contracts and will receive annual recurring revenues of GBP0.23 million. Brady also secured recurring revenue contracts for Commodity and Recycling products.
Microservices
During H1 we have discussed our new "microservices" strategy with both clients and potential clients, and across both groups there has been an overwhelming endorsement of the change. As a result, we are holding three proof of concept trials in H2 using microservices to optimise customer value utilising their data.
Organisational restructuring
We continued to strengthen the management team during H1 and invested in our teams, in the optimal locations, to deliver on our strategy and to allow the business to scale efficiently. During the first half of the year, we were delighted to welcome Sara Mottus, Head of Human Resources and Mark Gilliland, Head of Customer Success to the Operating Board.
As a result of this organisational restructuring, Brady has expensed GBP0.6 million of redundancy costs, legal costs and consultant costs as an exceptional item.
Looking forward
As of today, 93% of the full year revenue target is either contracted or is a renewal of an existing contract, leaving 7% to be closed out by the year end. Our cost base is in line with management's expectations to the half year and is expected to be in line with market expectations for the full year.
FINANCIAL RESULTS
Group Revenues
Revenues by type
6 months 6 months 12 months to 30 to 30 to 31 June June December 2017 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------- ------------- ----------- Recurring support, maintenance and rentals 9,027 8,914 18,906 Services including development 3,218 4,330 7,786 Software licences 937 1,514 3,577 ------------- ------------- ----------- 13,182 14,758 30,269 ------------- ------------- -----------
Software licence sales at GBP0.9m were GBP0.6m less than the same period last year. In H1 17, Brady signed four new licence deals compared to ten deals in H1 16. This reflects timings of renewals and the focus on recurring revenue as the business strategy moves towards a Software as a Service model.
Recurring revenue for the period was GBP9.0m compared to GBP8.9m in the prior period. Recurring revenue represents 68% of total sales in H1 2017 (H1 2016: 60%).
Service and development fees were GBP3.2m compared to GBP4.3m in the same period last year reflecting the lower level and timing of new deals in 2017.
The impact of the strengthening of the Swiss Franc, US Dollar and Norwegian NOK against Sterling on revenue was a positive GBP1.2m.
Operating costs
Operating costs increased by GBP1.8m to GBP16.7m from GBP14.9m in the same period last year. GBP1.2m of the increase is due to strengthening of Swiss Franc, US Dollar and Norwegian NOK against Sterling. The remaining increase is due to an increase in exceptional items of GBP0.4m, an increase in amortisation of GBP0.1m, an increase of GBP0.4m for other staff costs - mainly contractors less an increase in capitalised development of GBP0.4m.
Research and development expenditure represented 24 per cent (GBP3.1m) of the Group's revenues in the first half of 2017 compared to 23 per cent (GBP3.4m) in the first half of 2016. This is in line with the Group's commitment to ensuring that its product offering is maintained and up-to-date. Of the above research and development cost, GBP1.2m was capitalised (H1 16: GBP0.8m) and the increase is due to focus on strategic developments with key partners.
Profitability
Loss before taxation for the first half of 2017 was GBP3.5m compared to GBP0.1m for the first half of 2016.
EBITDA for the first half of 2016 was a GBP0.9m loss compared to GBP2.0m profit for the first half of 2016. The EBITDA margin for the first half of 2017 was 7 per cent loss compared to 14 per cent profit for the first half of 2016.
Basic earnings per share for the first half of 2017 was (3.97) pence per share compared to an EPS of (0.32) pence per share for the first half of 2016. Adjusted EPS was (2.49) pence per share, down from 1.05 pence in H1 2016.
Balance Sheet
The balance sheet continues to be dominated by goodwill and other intangible assets, largely as a natural consequence of the completion of acquisitions in previous years. As the majority of acquisitions were denominated in foreign currency, there is a movement in carrying value of GBP1.1m between balance sheet dates due to foreign exchange movements.
The Group continues to enjoy a strong balance sheet with net cash balances at 30 June 2017 of GBP5.0m (H1 2016: GBP6.4m).
Cash Flow
Cash outflow from operations in H1 2017 was GBP0.9m compared to a cash inflow of GBP1.0m for the same period in 2016.
Investing activities this year consisted of capitalised development GBP1.2m (H1 2016: GBP0.8m) and fixed asset purchases of GBP0.2m (H1 2016: GBP0.3m).
Consolidated interim statement of comprehensive income For the six months ended 30 June 2017 6 months 6 months 12 months to 30 to 30 to 31 June 2017 June 2016 December 2016 (unaudited) (unaudited) (audited) Notes GBP'000 GBP'000 GBP'000 ------------- ------------- ----------- Revenues 4 13,182 14,758 30,269 Operating costs 5 (16,691) (14,886) (30,895) ------------- ------------- ----------- Operating loss (3,509) (128) (626) ------------- ------------- ----------- Analysed as: Revenue 13,182 14,758 30,269 Other operating costs (14,062) (12,715) (25,742) ------------- ------------- ----------- Adjusted EBITDA (880) 2,043 4,527 ------------- ------------- ----------- Exceptionals 10 (607) (251) (1,159) Depreciation (317) (318) (678) Amortisation of acquired intangibles (826) (830) (1,718) Amortisation of other intangibles (879) (772) (1,598) ------------- ------------- ----------- Operating loss (3,509) (128) (626) ------------- ------------- ----------- Net finance income - 6 3 ------------- ------------- ----------- Loss before tax (3,509) (122) (623) ------------- ------------- ----------- Income tax 210 (141) (261) Exceptional income tax 10 - - (969) ------------- ------------- ----------- Loss for the period attributable to shareholders of Brady Plc (3,299) (263) (1,853) ------------- ------------- ----------- Other comprehensive income Exchange differences on translation of foreign operations (919) 3,997 5,566 Movement in actuarial valuation of defined benefit pension schemes (10) (1,359) 10 ------------- ------------- ----------- Total other comprehensive income (929) 2,638 5,576 ------------- ------------- ----------- Total comprehensive income for the period (4,228) 2,375 3,723 ------------- ------------- ----------- Earnings per share (pence) Basic 8 (3.97) (0.32) (2.23) Adjusted diluted (2.49) 1.05 2.40 Consolidated interim statement of financial position As at 30 June 2017 6 months 6 months 12 months to 30 to 30 to 31 June 2017 June 2016 December 2016 (unaudited) (unaudited) (audited) Notes GBP'000 GBP'000 GBP'000 ------------- ------------- ----------- Assets Non-current assets Intangible assets 11,12 34,535 34,393 35,999 Property, plant and equipment 942 1,202 978 Deferred tax asset 56 555 58 ------------- ------------- ----------- Total non-current assets 35,533 36,150 37,035 ------------- ------------- ----------- Current assets Trade and other receivables 6,949 8,312 7,297 Cash and cash equivalents 13 5,038 6,402 7,343 ------------- ------------- ----------- Total current assets 11,987 14,714 14,640 ------------- ------------- ----------- Total assets 47,520 50,864 51,675 ------------- ------------- ----------- Liabilities Current liabilities Trade and other payables (12,447) (12,103) (12,669) ------------- ------------- -----------
Total current liabilities (12,447) (12,103) (12,669) ------------- ------------- ----------- Non-current liabilities Deferred income tax liabilities (2,830) (2,854) (2,938) Pension obligations (2,939) (3,944) (2,732) ------------- ------------- ----------- Total non-current liabilities (5,769) (6,798) (5,670) ------------- ------------- ----------- Total liabilities (18,216) (18,901) (18,339) ------------- ------------- ----------- Net assets 29,304 31,963 33,336 ------------- ------------- ----------- Equity Share capital and premium 38,120 37,907 37,930 Treasury shares 7 (3) (3) (3) Other reserves (3,086) (3,212) (1,888) Retained earnings (5,727) (2,729) (2,703) ------------- ------------- ----------- Total equity 29,304 31,963 33,336 ------------- ------------- ----------- Consolidated interim statement of changes in equity For the six months ended 30 June 2017 Share capital & Other equity Other reserves Retained earnings Total premium GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------------- -------------- ---------------- ------------------- --------- Balance at 1 January 2016 37,883 (3) (7,297) (1,107) 29,476 Loss for the period - - - (263) (263) Other comprehensive income Movement in actuarial valuation of defined benefit pension - - - (1,359) (1,359) Exchange difference on translation of foreign operations - - 3,997 - 3,997 ------------------- -------------- ---------------- ------------------- --------- Total comprehensive income - - 3,997 (1,622) 2,375 ------------------- -------------- ---------------- ------------------- --------- Reverse credit for equity-settled share based payments - - 88 - 88 Issue of new share capital 24 - - - 24 ------------------- -------------- ---------------- ------------------- --------- Transactions with owners 24 - 88 - 112 ------------------- -------------- ---------------- ------------------- --------- Balance at 30 June 2016 37,907 (3) (3,212) (2,729) 31,963 ------------------- -------------- ---------------- ------------------- --------- Loss for the period - - - (1,590) (1,590) Other comprehensive income Movement in actuarial valuation of defined benefit pension - - - 1,369 1,369 Exchange difference on translation of foreign operations - - 1,569 - 1,569 ------------------- -------------- ---------------- ------------------- --------- Total comprehensive income - - 1,569 (221) 1,348 ------------------- -------------- ---------------- ------------------- --------- Reverse credit for equity-settled share based payments - - 2 - 2 Transfer for exercised and forfeited share options - - (247) 247 - Issue of new share capital 23 - - - 23 ------------------- -------------- ---------------- ------------------- --------- Transactions with owners 23 - (245) 247 25 ------------------- -------------- ---------------- ------------------- --------- Balance at 31 December 2016 37,930 (3) (1,888) (2,703) 33,336 ------------------- -------------- ---------------- ------------------- --------- Loss for the period - - - (3,299) (3,299) Other comprehensive income Movement in actuarial valuation of defined benefit pension - - - (10) (10) Exchange difference on translation of foreign operations - - (919) - (919) ------------------- -------------- ---------------- ------------------- --------- Total comprehensive income - - (919) (3,309) (4,228) ------------------- -------------- ---------------- ------------------- --------- Reverse credit for equity-settled share based payments - - 6 - 6 Transfer for exercised and forfeited share options - - (285) 285 - Issue of new share capital 190 - - - 190 ------------------- -------------- ---------------- ------------------- --------- Transactions with owners 190 - (279) 285 196 ------------------- -------------- ---------------- ------------------- --------- Balance at 30 June 2017 38,120 (3) (3,086) (5,727) 29,304 ------------------- -------------- ---------------- ------------------- --------- Consolidated interim statement of cashflows For the six months ended 30 June 2017 6 months 6 months 12 months to 30 to 30 to 31 December June 2017 June 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------- ------------- ----------------- Loss before tax (3,509) (122) (623) Adjustments for: Depreciation 317 318 678 Loss on disposal of - 6 - property, plant & equipment Amortisation of acquired intangibles 826 830 1,718 Amortisation of other intangibles 879 772 1,598 Share-based payment charge 6 88 90 Finance income - (5) (3) ------------- ------------- ----------------- Operating cashflows before working capital movement (1,481) 1,887 3,458 Change in receivables 471 545 332 Change in payables 70 (1,316) (1,053) ------------- ------------- ----------------- Cash (used in) / generated from operations before tax (940) 1,116 2,737 Net income taxes paid (9) (163) (428) ------------- ------------- ----------------- Net cashflows from operating activities (949) 953 2,309 ------------- ------------- ----------------- Cashflows from investing activities Acquisition of subsidiaries, net of cash acquired - (327) (326) Purchase of property,
plant & equipment (204) (268) (612) Expenditure on intangible assets (1,234) (782) (1,555) Interest received - 5 3 ------------- ------------- ----------------- Net cashflows from investing activities (1,438) (1,372) (2,490) ------------- ------------- ----------------- Cashflows from financing activities Proceeds from issue of ordinary share capital 190 24 47 ------------- ------------- ----------------- Net cashflows from financing activities 190 24 47 ------------- ------------- ----------------- Net decrease in cash and cash equivalents (2,197) (395) (134) ------------- ------------- ----------------- Cash and cash equivalents at start of period 7,343 6,594 6,594 Exchange differences on cash and cash equivalents (108) 203 883 Cash and cash equivalents at end of period 5,038 6,402 7,343 ------------- ------------- -----------------
Selected explanatory notes
1. Nature of operations and general information
Brady plc and its subsidiaries' principal activity is the provision of trading, risk management and settlement solutions to the energy, metals, recycling and soft commodities industries, through the delivery of client focused software and services.
The Group provides the leading trading and risk management software for global commodity markets. The Group provides a complete integrated solution supporting entire commodities trading operations.
Brady plc, a public limited liability company, is the Group's ultimate parent company. It is registered in England and Wales. The address of Brady plc's registered office is Riverside House, 7(th) Floor, 2A Southwark Bridge Road, London, SE1 9HA.
These condensed consolidated interim financial statements have been prepared using the recognition and measurement principles of International Financial Reporting Standards ("IFRS") as adopted by the European Union and as issued by the International Accounting Standards Board. They do not include all of the information required for full annual financial statements as defined in Section 434 of the Companies Act 2006 and should be read in conjunction with the Consolidated Financial Statements of the Group as at and for the year ended 31 December 2016. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498(2) or Section 498(3) of the Companies Act 2006. The consolidated financial statements have been filed with the Registrar of Companies and are available on the Group's website, www.bradyplc.com.
Brady plc's shares are listed on the London Stock Exchange's AIM. Brady plc's consolidated interim financial statements are presented in British pounds (GBP), which is also the functional currency of the ultimate parent company.
2. Accounting policies
The accounting policies applied by the Group are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2016.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.
3. Critical accounting judgements and key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimating uncertainty at the reporting date, that have a risk of causing a material adjustment to the carrying values of assets and liabilities within the next financial period are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2016.
4. Segment analysis reporting
Operating Segments
In accordance with IFRS 8, "Operating Segments", information for the Group's business units has been derived using the information used by the chief operating decision maker. The Executive Directors have been identified as the chief operating decision makers and the Board is responsible for the allocation of resources to business units and assessing their performance.
In 2016, the Group was organised into 3 business units. However, following the functional transformation of the business, the Group has been organised into one business unit throughout H1 17 and decisions by the chief operating decision maker have been made on this basis.
Revenue by Geography
6 months 6 months 12 months to 30 to 30 to 31 June June December 2017 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------- ------------- ----------- EMEA 8,979 9,906 20,241 Americas 3,652 4,208 8,375 APAC 551 644 1,653 ------------- ------------- ----------- 13,182 14,758 30,269 ------------- ------------- -----------
The Group generates revenue from software licence sales, recurring support and maintenance and rental fees and the provision of associated consulting and development services. Revenues can be analysed as below:
6 months 6 months 12 months to 30 to 30 to 31 June June December 2017 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------- ------------- ----------- Recurring support, maintenance and rentals 9,027 8,914 18,906 Services including development 3,218 4,330 7,786 Software licences 937 1,514 3,577 ------------- ------------- ----------- 13,182 14,758 30,269 ------------- ------------- -----------
5. Operating costs
Operating costs can be analysed as follows:
6 months 6 months 12 months to 30 to 30 to 31 June June December 2017 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------- ------------- ----------- Staff and related costs 11,158 9,919 18,433 Other operating costs 4,138 3,578 8,827 Capitalised development costs (1,234) (782) (1,518) Exceptionals 607 251 1,159 Depreciation 317 318 678 Amortisation 1,705 1,602 3,316 ------------- ------------- ----------- 16,691 14,886 30,895 ------------- ------------- -----------
6. Share issues
The Company made various allotments of ordinary 1 pence shares during the period on the exercise of various share options. This increased the Company's ordinary shares issued and fully paid at the end of the period by 285,000 (year ended 31 December 2016: 100,000).
7. Share buyback
During the period under review, the number of ordinary shares held in treasury has remained at 4,306.
8. Earnings per share
The calculation of the basic earnings per share is based on the profits attributable to the shareholders of Brady plc divided by the weighted average number of shares in issue during the period. All earnings per share calculations relate to continuing operations of the Group. Separate calculations have been prepared related to the profit before and after exceptional items.
Loss Weighted Basic attributable average earnings to shareholders number per share GBP'000 of shares amount in pence ------------------ ------------ ------------ 6 months ended 30 June 2017 (3,299) 83,185,942 (3.97) 6 months ended 30 June 2017 before exceptional items (2,692) 83,185,942 (3.24) 6 months ended 30 June 2016 (263) 83,011,302 (0.32) 6 months ended 30 June 2016 before exceptional items (12) 83,011,302 (0.01) Year ended 31 December
2016 (1,853) 83,029,599 (2.23) Year ended 31 December 2016 before exceptional items (694) 83,029,599 0.84
As there was a loss after tax for the six months ended June 2017, the six months ended June 2016 and the year ended December 2016, there was no dilutive effect.
The calculation of the adjusted earnings per share, as calculated by external analysts, is based on the profit after tax adjusted for acquired intangible assets amortisation, share based compensation, exceptional items and normalised tax and is calculated as follows:
6 months 6 months 12 months to 30 to 30 to 31 June June December 2017 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------- ------------- ----------- Loss for the year (3,299) (263) (1,853) Add back: Exceptionals 607 251 1,159 Amortisation of acquired intangibles 826 840 1,718 Share-based payments 6 88 90 Tax charge (210) 141 1,230 Deduct: Normalised tax charge at 15% - (182) (352) ------------- ------------- ----------- Adjusted (loss) / profit (2,070) 875 1,992 ------------- ------------- -----------
8. Earnings per share (continued)
Adjusted Weighted Basic profit/(loss) average adjusted attributable number earnings to shareholders of shares per share GBP'000 amount in pence ------------------ ------------ ------------ 6 months ended 30 June 2017 (2,070) 83,185,942 (2.49) 6 months ended 30 June 2016 875 83,011,302 1.05 Year ended 31 December 2016 1,992 83,029,599 2.40 9. Dividends
During the period Brady plc paid dividends of GBPnil to its equity shareholders (period ended 30 June 2016: GBPnil).
10. Exceptional items
The table below shows the exceptional costs incurred during the period.
6 months 6 months 12 months to 30 to 30 to 31 June June December 2017 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------- ------------- ----------- Acquisition costs relating to energycredit - 251 253 Functional transformation costs 607 - 626 Professional fees relating to overseas tax enquiry - - 280 ------------- ------------- ----------- Exceptional items charged to operating profit 607 251 1,159 ------------- ------------- ----------- Tax charge relating to overseas tax enquiry - - 969 ------------- ------------- ----------- Total exceptional items 607 251 2,128 ------------- ------------- -----------
11. Goodwill
The net carrying amount of Group goodwill can be analysed as follows:
Goodwill Purchased Total on consolidation goodwill GBP'000 GBP'000 GBP'000 ------------------- ----------- --------- Gross carrying amount 24,399 90 24,489 Accumulated impairment (3,816) (90) (3,906) ------------------- ----------- --------- Carrying amount at 30 June 2017 20,583 - 20,583 ------------------- ----------- --------- Gross carrying amount 25,021 90 25,111 Accumulated impairment (3,327) (90) (3,417) ------------------- ----------- --------- Carrying amount at 31 December 2016 21,694 - 21,694 ------------------- ----------- ---------
There were no changes in the net carrying amount of purchased goodwill. Changes in the net carrying amount of goodwill on consolidation can be summarised as follows:
Total GBP'000 ------- Carrying amount at 1 January 2017 21,694 Foreign exchange movement on retranslation (1,111) ------- Carrying amount at 30 June 2017 20,583 -------
12. Other intangible assets
Intangible assets comprise the following:
6 months 6 months 12 months to 30 to 30 to 31 June June December 2017 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------- ------------- ----------- Capitalised development 6,591 6,179 6,309 Acquired software products 4,982 5,084 5,419 Acquired customer relationships 2,379 2,952 2,577 ------------- ------------- ----------- 13,952 14,215 14,305 ------------- ------------- -----------
Changes in the net carrying amount of Group intangible assets can be summarised as follows:
Capitalised Acquired Acquired Total development software customer costs products relationships GBP'000 GBP'000 GBP'000 GBP'000 -------------- ----------- ---------------- --------- Carrying amount at 1 January 2017 6,309 5,419 2,577 14,305 Additions in the period 1,234 - - 1,234 Amortisation in the period (879) (574) (252) (1,705) Forex movement on retranslation (73) 137 54 118 -------------- ----------- ---------------- --------- Carrying amount at 30 June 2017 6,591 4,982 2,379 13,952 -------------- ----------- ---------------- ---------
13. Cash and cash equivalents
Cash and cash equivalents comprise the following:
6 months 6 months 12 months to 30 to 30 to 31 June June December 2017 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------- ------------- ----------- Cash and cash equivalents 5,038 6,402 7,343 ------------- ------------- ----------- 14. Financial statements
The financial information for the year ended 31 December 2016 included in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory accounts for the year ended 31 December 2016 have been filed with the Registrar of Companies. This statement can be obtained from the Company's registered office at Riverside House, 7(th) Floor, 2A Southwark Bridge Road, London, SE1 9HA and are available on the Company's website www.bradyplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFLAASIRIID
(END) Dow Jones Newswires
September 07, 2017 02:01 ET (06:01 GMT)
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