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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 |
From May 2019 to May 2024
TIDMBRY
RNS Number : 1978A
Brady plc
10 September 2018
10 September 2018
Brady PLC
("Brady", the "Company" or the "Group")
UNAUDITED INTERIM RESULTS
For the six months to 30 June 2018
Brady plc, the leading global provider of trading, risk management and settlement solutions to the energy and commodities sectors, is pleased to announce its unaudited interim results for the six months to 30 June 2018.
Financial Summary:
Hot Features
Premium
(Unaudited, (Unaudited,
(Unaudited) restated) restated)
6 months 6 months to 12 months to
to 30 June 2017 31 Dec 2017
30 June 2018 (1) (1)
GBP'000 GBP'000 GBP'000
--------------- --------------- --------------
Revenue 10,542 10,664 22,275
Recurring revenue 7,800 7,910 15,694
EBITDA after exceptional items (424) (1,851) (2,697)
EBITDA before exceptional items (424) (1,244) (256)
Operating result after exceptional
items (2,263) (3,716) (6,890)
Operating result before exceptional
items (2,263) (3,109) (4,449)
Loss for the period from continuing
operations (2,037) (3,522) (6,810)
Adjusted diluted loss per share
(pence) (2) (2.31) (2.77) (5.59)
Basic loss per share (pence) (2.77) (4.25) (10.48)
Cash and cash equivalents on
continuing operations 4,760 5,038 4,089
--------------- --------------- --------------
(1) The Group's 2017 full and half year financial results have been restated following the implementation of IFRS 15 "Revenue from Contracts with Customers" ("IFRS 15"), effective from 1 January 2018. The half year 2017 results have also been restated for discontinued operations, following the disposal of the Group's recycling business in January 2018. A restatement of the full year and half year 2017 financial results can be found in note 14.
(2) Adjusted loss per share, as calculated by external analysts, are based on the loss after tax adjusted for acquired intangible assets amortisation, share based compensation, exceptional items and normalised tax.
Operational and Financial Highlights:
-- Four contracts successfully renewed in H1 bringing total bookings value for H1 to GBP2.8m -- Two new contracts won in H1 at a GBP0.5m booking value -- Gross margin increased to 55% (H1 2017: 52%) -- Recurring revenues at 74% (H1 2017: 74%) -- EBITDA loss of GBP0.424m (H1 2017 loss: GBP1.851m)
Outlook:
-- 95% visibility of our 2018 revenues -- Recurring revenue expected to return to medium term target of 70% by year end -- Improvements in profitability and cash generation expected in remainder of 2018 and beyond -- FY2018 results expected to be in line with market expectations
Ian Jenks, Executive Chairman, said:
"Forward momentum has been our watch word as we have successfully continued the re-organisation of the business. We are doing exactly what we said we would, including an investment in new products, the removal of costs, creating long-term solutions with the customer at the centre and a continual transition away from the Group's legacy contract model.
This has put us on a strong footing reflected in the fact that we have also secured new contract wins and retained all business that came up for renewal during the period.
As such, we are confident that the business will scale efficiently and deliver significant improvements in profitability and cash generation in the remainder of 2018 and beyond. With 95% visibility of our 2018 revenues and a cost base that is now aligned with our strategic goals, we expect our full year results to be in line with market expectations."
For further information please contact:
Brady plc
Ian Jenks, Executive Chairman Telephone: +44 (0)20 3301
Martin Thorneycroft, Chief Financial 1200
Officer
Cenkos Securities Telephone: +44 (0)20 7397
Mark Connelly 8900
Redleaf Communications Bob Huxford/ Telephone: +44 (0)20 7382
Ian Silvera 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 and unrefined metals, soft commodities and agriculturals.
Brady has 30 years' expertise in the commodity markets and its clients include many of the world's largest financial institutions, trading companies, miners, refiners and producers, 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
The first half of 2018 has built on the foundations that we have been laying since the re-organisation of Brady began in September 2016. We said at the time that this would be a 3 year process, at the end of which your Company would be a scalable, predictable, customer-centric, highly cash generative business and we are on track to deliver on that promise. So far we have re-organised the structure of the business from top to bottom and created a global, functional organisation focussed on recurring revenues and long term client relationships. We have put the customer at the centre of everything that we do and the first half of this year has seen this strategy bearing fruit. We still have work to do, but the scale of the changes are significantly less than in 2017 and the associated costs have been treated as operating expenses rather than exceptional items.
We have previously said that the revenue for the full year to December 2018 would be unlikely to grow at more than 3-4% as we change our business model. We are reporting revenue for the 6 months to 30 June 2018 as being broadly flat year on year at GBP10.54m (GBP10.85m on a constant currency basis) compared to GBP10.66m in 1H 2017. We also said that synergies from the integration of the historic acquisitions would lead to a constant improvement in our operating margin. Our gross margin has improved from 52% in 2017 to 55% during the period. As a result, our EBITDA for the period has improved from a loss of GBP1.851m to a loss of GBP0.424m. Loss for the period after tax for continuing operations improved to GBP2.04m from GBP3.52m in 2017. This is a result of the tremendous efforts put in by the whole business and shows the increasing efficiency of the changing model that we are implementing.
Recurring revenues were slightly above our medium-term target of 70% at 74%. However, we expect that this will move back towards the medium-term target for the full year as we expect to recognise a higher level of services and licence revenue in H2. We have successfully tendered and won two new customers during the period, Ustekveikja Energi AS ("UE") and AES with a total contracted value ("bookings value") over the life of the contract of GBP0.5m. Four contracts came up for renewal in H1 and we are very pleased to say that all four were successfully renewed bringing the total bookings value in H1 to GBP2.8m.
When I last wrote to shareholders I said we were confident that the changes we had made had sufficiently strengthened the Company that we would begin to increase our market presence. In the first half of this year, we have sponsored a number of conferences, seen some well positioned product campaigns and participated in various focussed industry interviews. We are seeing the benefits coming through and our pipeline is building. We need to build on this early promise and convert these opportunities into contracts in the coming months.
We are continuing to look at new products and new innovation which will enable us to provide a fuller and more valued service to our client base. In every case we look to build, buy or partner for new products. In the first half of the year we continued to develop our concentrates and tolling functionality and we are delighted to have announced our first partnership with Trailight which offers a compliance product to our customer base.
In summary we are doing exactly what we said we would. We have improved operating efficiency, we are investing in new products, we have ensured that our customers are firmly at the centre of everything we do. We have substantially completed a number of the major project implementations that were ongoing when I started in this role. We have successfully secured GBP2.8m of bookings in the first half and look forward to securing more through the remainder of the year.
Our H1 results reflect the natural consequence of our transition process away from the legacy model. We are beginning to see the results of the business decisions we have made reflected positively in our numbers. The business is positioned to scale efficiently and deliver significant improvements in profitability and cash generation in the remainder of 2018 and beyond.
With 95% visibility of our full year revenues and a cost base that is increasingly aligned with our strategic goals, we expect our full year results to be in line with market expectations."
FINANCIAL RESULTS
Group Revenues
Revenues by type
6 months 6 months 12 months
to 30 June to 30 June to 31 December
2018 2017 2017
(unaudited) (unaudited, (unaudited,
restated) restated)
GBP'000 % GBP'000 % GBP'000 %
------------- ------------- -----------------
Recurring support, maintenance
and rentals 7,800 74% 7,910 74% 15,694 71%
Services including development 1,637 16% 2,170 20% 4,044 18%
Software licences 1,105 10% 584 6% 2,537 11%
------------- ------------- -----------------
10,542 10,664 22,275
------------- ------------- -----------------
Recurring revenue for the period was GBP7.8m compared to GBP7.9m in the prior period. Recurring revenue represents 74% of total sales in H1 2018 (H1 2017: 74%). On a constant currency basis, recurring revenues were GBP8.0m (74%). The GBP0.1m growth comprising new recurring revenue of GBP0.4m less lost revenue from cancellations in prior years.
Software licence revenues at GBP1.1m was GBP0.5m more than in the same period last year. The growth in licence revenue is mainly driven by GBP0.5m of annual renewals (H1 2017 - GBPnil).
Service and development fees were GBP1.6m compared to GBP2.2m in the same period last year reflecting completion of several energy and commodity implementations in 2017.
The impact of the weakening of the main trading currencies (Swiss Franc, US Dollar and Norwegian NOK) against Sterling on revenue was a negative GBP0.3m (Recurring revenues GBP0.2m, and Services and development revenues GBP0.1m).
Gross margin
Overall gross margin before exceptional items was 55% (H1 2017: 52%). On a constant currency basis, the gross margin is also 55%. The increase in gross margin year on year is due to the improved efficiency and synergies in the product departments.
Operating costs
Operating costs decreased by GBP1.2m to GBP8.1m from GBP9.3m in the same period last year. GBP0.2m of the decrease is due to weakening of Swiss Franc, US Dollar and Norwegian NOK against Sterling. The remaining decrease is due to a reduction in other operating costs of GBP0.4m and a decrease in one-off exceptional items of GBP0.6m.
GBP1.2m of research and development costs were capitalised (H1 17: GBP1.2m). This is our investment in new product for the future which will keep our software at the leading edge. The largest projects in H1 2018 were additional functionality for the concentrates module and a tolling module for the Fintrade product.
Profitability
Loss before taxation for the first half of 2018 was GBP2.3m compared to GBP3.7m for the first half of 2017.
Adjusted EBITDA (EBITDA before exceptional items) for the first half of 2018 was a GBP0.4m loss compared to a loss of GBP1.2m for the first half of 2017.
EBITDA was GBP1.4m better than 2017 at a loss of GBP0.4m compared to a loss in 2017 of GBP1.8m. As the re-organisation was substantially complete in 2017 no items have been classified as exceptional in 2018.
Basic earnings per share for the first half of 2018 was (2.77) pence per share compared to an EPS of (4.25) pence per share for the first half of 2017. Adjusted diluted EPS was (2.31) pence per share, up from (2.77) pence in H1 2017.
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 GBP0.7m 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 2018 of GBP4.8m (H1 2017: GBP5.0m).
Cash Flow
Cash outflow from operations in H1 2018 was GBP1.0m compared to a cash outflow of GBP0.9m for the same period in 2017.
Net cash increase from investing activities was GBP1.6m in the first half of 2018 compared to an outflow of GBP1.4m for the same period last year, and includes the first payment of GBP2.9m following the disposal of the Group's recycling business in January 2018. Investing activities this year also consisted of capitalised development GBP1.2m (H1 2017: GBP1.2m) and property, plant and equipment purchases of GBP0.1m (H1 2017: GBP0.2m).
Consolidated interim statement of comprehensive income
For the six months ended 30 June 2018
6 months 6 months 12 months
to 30 June to 30 June to 31 December
2018 2017 2017
Restated
Restated
(unaudited) (unaudited) (unaudited)
Notes GBP'000 GBP'000 GBP'000
------------- ------------- -----------------
Revenue 4 10,542 10,664 22,275
Cost of revenues 5 (4,749) (5,081) (10,119)
------------- ------------- -----------------
Gross profit 5,793 5,583 12,156
Operating costs 5 (8,056) (9,299) (19,046)
------------- ------------- -----------------
Operating loss (2,263) (3,716) (6,890)
------------- ------------- -----------------
Analysed as:
Gross profit (before exceptionals) 5,793 5,583 12,423
Other operating costs
(before exceptionals) (6,217) (6,827) (12,679)
------------- ------------- -----------------
Adjusted EBITDA (424) (1,244) (256)
------------- ------------- -----------------
Exceptionals 9 - (607) (2,441)
Depreciation 5 (167) (290) (298)
Amortisation of acquired
intangibles (635) (775) (1,559)
Amortisation of other
intangibles (1,037) (800) (2,336)
------------- ------------- -----------------
Operating loss (2,263) (3,716) (6,890)
------------- ------------- -----------------
Net finance expense (30) - (22)
------------- ------------- -----------------
Loss before tax (2,293) (3,716) (6,912)
------------- ------------- -----------------
Income tax 256 194 102
Loss for the period from
continuing operations (2,037) (3,522) (6,810)
------------- ------------- -----------------
Loss from discontinued
operations 13 (271) (13) (1,922)
------------- ------------- -----------------
Loss for the period attributable
to shareholders of Brady
Plc (2,308) (3,535) (8,732)
------------- ------------- -----------------
Other comprehensive income/(loss)
Exchange differences on
translation of foreign
operations 658 (864) (1,419)
Exchange differences relating
to discontinued operations - (55) (57)
Movement in actuarial
valuation of defined benefit
pension schemes 603 (10) 261
------------- ------------- -----------------
Total other comprehensive
income/(loss) 1,261 (929) (1,215)
Total comprehensive loss
for the period (1,047) (4,464) (9,947)
------------- ------------- -----------------
Loss per share (pence)
Basic 8 (2.77) (4.25) (10.48)
Adjusted diluted (2.31) (2.77) (5.59)
Consolidated interim statement of financial position
As at 30 June 2018
6 months 6 months 12 months
to 30 June to 30 June to 31 December
2018 2017 2017
Restated
Restated
(unaudited) (unaudited) (unaudited)
Notes GBP'000 GBP'000 GBP'000
------------- ------------- -----------------
Assets
Non-current assets
Intangible assets 10,11 26,275 34,535 26,091
Property, plant and equipment 764 942 487
Deferred tax asset 39 56 -
------------- ------------- -----------------
Total non-current assets 27,078 35,533 26,578
------------- ------------- -----------------
Current assets
Trade and other receivables 5,480 7,000 4,787
Cash and cash equivalents 12 4,760 5,038 4,089
Assets classified as
held for sale - - 5,848
------------- ------------- -----------------
Total current assets 10,240 12,038 14,724
------------- ------------- -----------------
Total assets 37,318 47,571 41,302
------------- ------------- -----------------
Liabilities
Current liabilities
Trade and other payables (12,340) (14,482) (13,133)
Provisions (309) - (350)
Liabilities classified
as held for sale - - (1,384)
------------- ------------- -----------------
Total current liabilities (12,649) (14,482) (14,867)
------------- ------------- -----------------
Non-current liabilities
Deferred income tax liabilities (1,901) (2,830) (2,099)
Pension obligations (1,972) (2,939) (2,494)
------------- ------------- -----------------
Total non-current liabilities (3,873) (5,769) (4,593)
------------- ------------- -----------------
Total liabilities (16,522) (20,251) (19,460)
------------- ------------- -----------------
Net assets 20,796 27,320 21,842
------------- ------------- -----------------
Equity
Share capital and premium 38,120 38,120 38,120
Treasury shares 7 (3) (3) (3)
Other reserves (3,109) (3,086) (3,714)
Retained earnings (14,212) (7,711) (12,561)
------------- ------------- -----------------
Total equity 20,796 27,320 21,842
------------- ------------- -----------------
Consolidated interim statement of changes in equity
For the six months ended 30 June 2018
Share capital Treasury Other Retained Total
and premium shares reserves earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- ---------- ----------- ----------- ---------
Balance at 1 January
2017, as reported 37,930 (3) (1,888) (2,703) 33,336
Impact of change
in accounting standards
- IFRS 15 - - - (1,748) (1,748)
--------------- ---------- ----------- ----------- ---------
Balance at 1 January
2017, restated 37,930 (3) (1,888) (4,451) 31,588
--------------- ---------- ----------- ----------- ---------
Loss for the period,
restated - - - (3,535) (3,535)
Other comprehensive
loss (919) (10) (929)
Total comprehensive
loss - - (919) (3,545) (4,464)
--------------- ---------- ----------- ----------- ---------
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, restated 38,120 (3) (3,086) (7,711) 27,320
--------------- ---------- ----------- ----------- ---------
Balance at 1 January
2018, as reported 38,120 (3) (3,714) (10,328) 24,075
Impact of change
in accounting standards
- IFRS 15 - - - (2,233) (2,233)
Balance at 1 January
2018, restated 38,120 (3) (3,714) (12,561) 21,842
Loss for the period - - - (2,308) (2,308)
Other comprehensive
income - - 658 603 1,261
Total comprehensive
income/(loss) - - 658 (1,705) (1,047)
--------------- ---------- ----------- ----------- ---------
Credit for equity-settled
share-based payments - - 1 - 1
Transfer for exercised
and forfeited share
options - - (54) 54 -
Transactions with
owners - - (53) 54 1
--------------- ---------- ----------- ----------- ---------
Balance at 30 June
2018 38,120 (3) (3,109) (14,212) 20,796
--------------- ---------- ----------- ----------- ---------
Consolidated interim statement of cashflows
For the six months ended 30 June 2018
6 months 6 months 12 months
to 30 June to 30 June to 31 December
2018 2017 2017
Restated Restated
(unaudited) (unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
--------------- -------------- -----------------
Loss before tax - continuing
operations (2,293) (3,716) (6,912)
Loss before tax - discontinued
operations (271) (28) (1,844)
--------------- -------------- -----------------
Loss before tax (2,564) (3,744) (8,756)
Adjustments for:
Write down of carrying value
of net assets for discontinued
operations - - 1,906
Depreciation 167 317 346
Amortisation of acquired intangibles 635 826 1,643
Amortisation of other intangibles 1,037 879 2,525
Loss from disposal of property,
plant and equipment 42 - 5
Share-based payment charge 1 6 11
Non-cash movement of defined
benefit pension charge 56 111 134
Net finance expense 30 - 22
--------------- -------------- -----------------
Operating cashflows before
working capital movement (596) (1,605) (2,164)
Change in receivables 1,024 421 1,436
Change in payables (1,364) 244 62
Change in provisions (41) - 350
--------------- -------------- -----------------
Cash used in operations before
tax (977) (940) (316)
Net income taxes (received)
/ paid (50) (9) 247
--------------- -------------- -----------------
Net cashflows from operating
activities (1,027) (949) (69)
--------------- -------------- -----------------
Cashflows from investing activities
Sale of subsidiary, net of 2,936 - -
cash disposed and disposal
costs
Purchase of property, plant
& equipment (129) (204) (314)
Proceeds from sale of property, 14 - -
plant & equipment
Expenditure on intangible
assets (1,214) (1,234) (2,492)
Net cashflows from investing
activities 1,607 (1,438) (2,806)
--------------- -------------- -----------------
Cashflows from financing activities
Proceeds from issue of ordinary
share capital - 190 190
Finance lease capital repayments (76) - -
Interest paid (38) - (22)
--------------- -------------- -----------------
Net cashflows from financing
activities (114) 190 168
--------------- -------------- -----------------
Net increase / (decrease)
in cash and cash equivalents 466 (2,197) (2,707)
--------------- -------------- -----------------
Cash and cash equivalents
at start of period 4,354 7,343 7,343
Exchange differences on cash
and cash equivalents (60) (108) (282)
Cash and cash equivalents
at end of period 4,760 5,038 4,354
--------------- -------------- -----------------
Selected explanatory notes
1. Nature of operations and general information
Brady plc ('the Company') and its subsidiaries' (together 'the Group') principal activity is the provision of trading and risk management software to the global energy and commodities markets.
The Group provides 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 and unrefined, soft commodities and agriculturals.
Brady plc, a public limited liability company, is the Group's ultimate parent company. It is registered, incorporated and domiciled in England and Wales. The address of Brady plc's registered office is Centennium House, 100 Lower Thames Street, London, EC3R 6DL.
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 2017. 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.
The financial information presented for the six month periods ended 30 June 2018 and 30 June 2017 has not been audited. The comparative financial information for the year ended 31 December 2017 does not constitute the full statutory annual report of Brady plc for that year and is not audited due to the adoption of IFRS 15, see notes 2 and 14.
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 2017, except for the adoption of the new standard relating to revenue, as set out below. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.
After making enquiries, the Directors have concluded that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing these interim condensed consolidated financial statements.
New standards adopted by the Group as at 1 January 2018
IFRS 15 "Revenue from Contracts with Customers"
IFRS 15 "Revenue from Contracts with Customers" and the related "Clarifications to IFRS 15 Revenue from Contracts with Customers" (hereinafter referred to as "IFRS 15") is the new standard for the recognition of revenue and it replaces IAS 18 "Revenue" and IAS 11 "Construction Contracts".
IFRS 15 has been applied using the full retrospective method meaning that the cumulative impact of the adoption is recognised in retained earnings as at 1 January 2017 and the comparatives restated. In accordance with IFRS 15 C5, the Group has elected to use the following expedients:
-- The Group has not restated contracts that begin and end in the same period or were completed before the transition date of 1 January 2017; and
-- For contracts that were modified before 1 January 2017, the Group has reflected the aggregate effect of the modifications when identifying the performance obligations and determining and allocating the transaction price.
The adoption of IFRS 15 has mainly affected contracts with multiple performance obligations, of which the Group has many. Typically, a contract will include a software licence or rental, installation services, development services and ongoing support. Under IFRS 15, the Group must consider whether each contract element is distinct. It has been determined that installation and certain development services are not distinct from the software licence or rental and therefore are considered one performance obligation.
Under the previous standard, IAS 18, each element was considered a separate item and revenue recognised on each item as follows; licence revenue recognised upon contracted acceptance; rental and ongoing support revenues recognised over time; installation services revenue recognised as the work was performed; and development services revenue recognised on a percentage-of-completion method.
As a result of implementation of IFRS 15, the timing of revenue recognition has been delayed for the software licence and services elements of contracts with multiple performance obligations as the revenue is recognised at the point the customer has the ability to go-live rather than upon contract signing, as the work is performed or on a percentage-of-completion method.
As a result of the delays in revenue recognition under IFRS 15 compared to IAS 18 and the corresponding recognition of contract fulfilment assets, the net assets of the Group have decreased at 1 January 2017 from GBP33.3m to GBP31.6m.
The cumulative effect of the adoption of the new standard at 1 January 2017 and 1 January 2018 is as follows:
1 Jan 2018 1 Jan 2017
GBP'000 GBP'000
----------- -----------
Retained earnings as previously
reported (10,328) (2,703)
Recognition of contract fulfilment 166 -
assets
Recognition of contract liabilities (2,399) (1,748)
----------- -----------
Adjustment to retained earnings
from adoption of IFRS 15 (2,233) (1,748)
Restated opening retained earnings
at 1 January (12,561) (4,451)
----------- -----------
Details of the impact of adoption of IFRS 15 on the Group and an explanation of the impact on the Group's prior year financial statements are set out in note 14.
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 2017.
4. Segment analysis reporting
Operating Segments
The Group is organised for reporting purposes into a single, global business unit. This is the basis of the Group's external marketing offering and internal organisation and management structure, The Chief Operating Decision Maker (CODM), which is the Operating Board comprising Executive Directors and certain senior management, receives financial information reported as a single business unit and the Group has determined that it has only one reportable segment as defined by IFRS 8.
The internal management accounting information has been prepared on an IFRS basis but has a non-GAAP "adjusted EBITDA" as a profit measure for the overall group and this is reported on the face of the income statement.
Revenue by Geography
The Group's revenue from external customer by geography is detailed below.
6 months 6 months 12 months
to 30 June to 30 June to 31 December
2018 2017 2017
Restated Restated
(unaudited) (unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
------------- ------------- -----------------
United Kingdom 1,932 1,442 2,806
Other EMEA 6,592 7,251 14,436
Americas 1,311 1,498 2,847
Asia Pacific 707 473 2,186
------------- ------------- -----------------
10,542 10,664 22,275
------------- ------------- -----------------
Revenues from external customers in the Group's domicile, the UK, as well as its major markets, EMEA, Americas and Asia Pacific, have been identified on the basis of the customer's geographical location.
Revenue by Nature
The Operating Board consider that the business has three revenue streams with difference characteristics, which are generated from the same asset and cost base.
6 months 6 months 12 months
to 30 June to 30 June to 31 December
2018 2017 2017
Restated Restated
(unaudited) (unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
------------- ------------- -----------------
Recurring support, maintenance
and rentals 7,800 7,910 15,694
Services including development 1,637 2,170 4,044
Software licences 1,105 584 2,537
------------- ------------- -----------------
10,542 10,664 22,275
------------- ------------- -----------------
5. Costs
Operating costs can be analysed as follows:
6 months 6 months 12 months
to 30 June to 30 June to 31 December
2018 2017 2017
Restated Restated
(unaudited) (unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
--------------- -------------- -----------------
Staff and related costs 8,911 9,431 19,469
Other operating costs 3,217 3,595 5,128
Capitalised development costs (1,162) (1,118) (2,066)
Exceptionals - 607 2,441
Depreciation 167 290 298
Amortisation 1,672 1,575 3,895
--------------- -------------- -----------------
12,805 14,380 29,165
--------------- -------------- -----------------
The costs are presented within cost of revenues and operating costs as follows:
6 months 6 months 12 months
to 30 June to 30 June to 31 December
2018 2017 2017
Restated Restated
(unaudited) (unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
------------- ------------- -----------------
Cost of revenues 4,749 5,081 10,119
Operating costs 8,056 9,299 19,046
------------- ------------- -----------------
12,805 14,380 29,165
------------- ------------- -----------------
6. Share issues
The Company made no allotments of ordinary shares of 1 pence each during the period. In the prior year, the Company allotted 285,000 ordinary shares of 1 pence each following the exercise of various share options for total consideration of GBP190,000.
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 loss attributable to the shareholders of Brady plc divided by the weighted average number of shares in issue during the period. The earnings per share calculations relate to the total Group and the earnings per share for the discontinued operation is disclosed below. Separate calculations have been prepared related to the loss before and after exceptional items.
Loss attributable Weighted Basic earnings
to shareholders average per share
GBP'000 number amount in
of shares pence
------------------- ------------ ----------------
6 months ended 30 June 2018 (2,308) 83,367,887 (2.77)
6 months ended 30 June 2018
before exceptional items (2,308) 83,367,887 (2.77)
6 months ended 30 June 2017,
as reported (3,299) 83,185,942 (3.97)
Impact of IFRS 15 (236) - (0.28)
------------------- ------------ ----------------
6 months ended 30 June 2017,
restated (3,535) 83,185,942 (4.25)
------------------- ------------ ----------------
6 months ended 30 June 2017
before exceptional items, as
reported (2,692) 83,185,942 (3.24)
Impact of IFRS 15 (236) - (0.28)
------------------- ------------ ----------------
6 months ended 30 June 2017
before exceptional items, restated (2,928) 83,185,942 (3.52)
------------------- ------------ ----------------
Year ended 31 December 2017,
as reported (8,247) 83,329,613 (9.90)
Impact of IFRS 15 (485) - (0.58)
------------------- ------------ ----------------
Year ended 31 December 2017,
restated (8,732) 83,329,613 (10.48)
------------------- ------------ ----------------
Year ended 31 December 2017
before exceptional items, as
reported (5,806) 83,329,613 (6.97)
Impact of IFRS 15 (485) - (0.58)
------------------- ------------ ----------------
Year ended 31 December 2017
before exceptional items, restated (6,291) 83,329,613 (7.55)
------------------- ------------ ----------------
As there was a loss after tax for the six months ended June 2018, the six months ended June 2017 and the year ended December 2017, there was no dilutive effect.
The basic earnings per share for the discontinued operation was a loss of 0.33 pence per share (H1 2017: 0.02 pence loss per share, FY 2017: 2.31 pence loss per share). There has been no impact on the earnings per share for the discontinued operation for the adoption of IFRS 15.
The calculation of the adjusted earnings per share, as calculated by external analysts, is based on the loss 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 June to 30 June to 31 December
2018 2017 2017
Restated Restated
(unaudited) (unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
--------------- -------------- -----------------
Loss for the year (2,308) (3,535) (8,732)
Add back:
Exceptional items - 607 2,441
Amortisation of acquired intangibles 635 826 1,643
Share-based payments 1 6 11
Tax charge (256) (210) (24)
Adjusted loss (1,928) (2,306) (4,661)
--------------- -------------- -----------------
Adjusted Weighted Basic adjusted
loss attributable average earnings
to shareholders number per share
GBP'000 of shares amount in
pence
-------------------- ------------ ----------------
6 months ended 30 June 2018 (1,928) 83,367,887 (2.31)
6 months ended 30 June 2017
(restated) (2,306) 83,185,942 (2.77)
Year ended 31 December 2017
(restated) (4,661) 83,329,613 (5.59)
The adjusted diluted earnings per share for the discontinued operation was a loss of 0.33 pence per share (H1 2017: 0.03 pence profit per share, FY 2017: 2.11 pence loss per share).
9. Exceptional items
The table below shows the exceptional costs incurred during the period.
6 months 6 months 12 months
to 30 June to 30 June to 31 December
2018 2017 2017
(unaudited) (unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
-------------- ------------- -----------------
Functional transformation costs - 607 1,818
Contract dispute - - 623
--------------- ------------- -----------------
- 607 2,441
--------------- ------------- -----------------
10. 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 19,889 90 19,979
Accumulated impairment (3,848) (90) (3,938)
------------------- ----------- ---------
Carrying amount at 30 June 2018 16,041 - 16,041
------------------- ----------- ---------
Gross carrying amount 19,467 90 19,557
Accumulated impairment (3,762) (90) (3,852)
------------------- ----------- ---------
Carrying amount at 31 December
2017 15,705 - 15,705
------------------- ----------- ---------
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
------------------- ----------- ---------
There were no changes in the net carrying amount of purchased goodwill in the period. Changes in the net carrying amount of goodwill on consolidation can be summarised as follows:
Total
GBP'000
-------
Carrying amount at 1 January 2018 15,705
Foreign exchange movement on retranslation 336
-------
Carrying amount at 30 June 2018 16,041
-------
11. Other intangible assets
Intangible assets comprise the following:
6 months 6 months 12 months
to 30 June to 30 June to 31 December
2018 2017 2017
(unaudited) (unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
------------- ------------- -----------------
Capitalised development 5,733 6,591 5,452
Acquired software products 2,842 4,982 3,229
Acquired customer relationships 1,185 2,379 1,336
Software 474 - 369
------------- ------------- -----------------
10,234 13,952 10,386
------------- ------------- -----------------
Changes in the net carrying amount of Group intangible assets can be summarised as follows:
Capitalised Acquired Acquired Software Total
development software customer
costs products relationships
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- ----------- -------------- ---------- ---------
Carrying amount
at 1 January
2018 5,452 3,229 1,336 369 10,386
Additions in
the period 1,162 - - 226 1,388
Amortisation
in the period (917) (453) (182) (120) (1,672)
Forex movement
on retranslation 36 66 31 (1) 132
-------------- ----------- -------------- ---------- ---------
Carrying amount
at 30 June 2018 5,733 2,842 1,185 474 10,234
-------------- ----------- -------------- ---------- ---------
12. Cash and cash equivalents
Cash and cash equivalents comprise the following:
6 months 6 months 12 months
to 30 June to 30 June to 31 December
2018 2017 2017
(unaudited) (unaudited) (unaudited)
GBP'000 GBP'000 GBP'000
------------- ------------- -----------------
Cash and cash equivalents 4,760 5,038 4,354
------------- ------------- -----------------
Cash and cash equivalents at 31 December 2017 included GBP4,089,000 relating to continuing operations and GBP265,000 relating to discontinued operations.
13. Discontinued operation
In autumn 2017, the Board decided to exit the Recycling market in the USA and initiated an active program to sell its subsidiaries Brady US Holdings, Inc. and Systems Alternatives International LLC. The associated assets and liabilities were consequently presented as held for sale in the 2017 financial statements.
The subsidiaries were sold on 25 January 2018 and the carrying amounts of assets and liabilities at this date were:
GBP'000
-------
Intangible assets 4,774
Property, plant and equipment 82
Trade and other receivables 541
Cash and cash equivalents 620
-------
6,017
Trade and other payables (1,581)
Net assets (4,436)
-------
The trading performance of the disposal group in 2018 up to the date of sale was as follows:
GBP'000
-------
Revenue 273
Cost of revenues (105)
-------
Gross profit 168
Operating costs (132)
-------
Operating profit 36
-------
The cashflow information of the disposal group in 2018 up to the date of sale was as follows:
GBP'000
-------
Net cash inflow from operating activities 355
Net cash inflow from investing activities -
Net cash inflow from financing activities -
-------
Net increase in cash generated by the disposal group 355
-------
The loss on disposal was as follows:
GBP'000
-------
Consideration receivable
Cash 3,701
Fair value of deferred consideration 999
Working capital adjustment (183)
-------
Total consideration receivable 4,517
Carrying amount of net assets sold (4,436)
Costs to sell (145)
Loss on sale before income tax and reclassification of
the foreign currency translation reserve (64)
Reclassification of foreign currency translation reserve (243)
-------
Loss on sale (307)
-------
The total amount recognised in the statement of comprehensive income relating to the discontinued operation is:
GBP'000
-------
Profit for the period 36
Loss on disposal (307)
-------
Loss from discontinued operations (271)
-------
14. Adoption of IFRS 15
The Group adopted IFRS 15 Revenue from Contracts with Customers ("IFRS 15") on 1 January 2018 using the fully retrospective method. This note details the Group's new accounting policy for revenue and shows the impact of the adoption of IFRS 15 on the Group's primary financial statements.
Accounting policy for revenue
Revenue comprises the value of sales (excluding trade discounts and VAT) of goods and services in the normal course of business. The Group has multiple revenue streams and the policy for each is detailed below. The Group acts as the principle in all sales.
To determine whether to recognise revenue, the Group follows a 5-step process:
1. Identifying the contract with a customer 2. Identifying the performance obligations 3. Determining the transaction price 4. Allocating the transaction price to the performance obligations 5. Recognising revenue when/as the performance obligation(s) are satisfied.
Contracts typically contain a number of revenue streams and, depending on the contractual terms, may not be distinct and therefore considered to be one performance obligation. The total contract transaction price is allocated to the various performance obligations based on their relative standalone selling prices.
Software and associated installation services
Revenue from rental (subscription) of software is recognised evenly over the period from the date the customer can benefit from using the software, typically the point when the customer has the ability to 'go-live', until the contract end date. Software rental contracts are under a 'right to access' model and the Group retains control of the intellectual property throughout the contract term.
Revenue from sale of software term licences is recognised at a point in time when the customer has control of the asset, which is typically at the point when the customer has the ability to 'go-live'. Software term licence contracts are under a 'right to use' model and customer is entitled to the intellectual property as it stands at a point in time.
Due to the nature of the Group's software offerings, there is typically a period of installation before the customer can benefit from the asset. Revenue from installation services is recognised on completion of related performance obligations, typically when the customer has the ability to 'go-live'.
Consulting and professional service fee revenues
Revenue from consulting and professional service fees is recognised over time as the work is performed as this reflects when control is considered to be transferred. The customer receives and consumes the benefit of the service as it is performed and the Group has an enforceable right to payment for work completed to date on a time and materials basis.
The Group performs some bespoke development work on its software products at client request. Revenue from bespoke development work is recognised at a point in time when contractual commitments have been delivered, which is typically when the customer has the ability to 'go-live'.
Support, maintenance and hosting
Revenue from support, maintenance and hosting is recognised evenly over period to which it relates in line with contractual terms. As the amount of work required under these contract elements does not vary significantly from month-to-month, the straight-line method provides a faithful depiction of the transfer of goods or services.
Contract assets and liabilities
The Group recognises contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts as 'contract liabilities' in the statement of financial position.
The Group recognises the following contract assets in the statement of financial position:
-- Amounts recoverable on contracts, if the Group satisfies a performance obligation before it invoices the customer. The asset is derecognised at the point in time when the Group invoices the customer.
-- Contract fulfilment costs, if the following criteria are met:
o The costs directly relate to a contractual performance obligation
o The costs relate to satisfaction of a performance obligation in the future
o The costs are expected to be recovered.
The asset is amortised over the period in which the revenue from the related performance obligation is recognised.
At each reporting date, contract assets are assessed for impairment by comparing the carrying amount of the asset to the remaining consideration that the Group expects to receive under the contract, less future costs to complete.
No contract assets are recognised for incremental costs of obtaining customer contracts as assessment of whether such costs are recoverable is not probable.
Financing elements
The Group does not expect to have any contracts where the period between revenue recognition and payment by the customer exceeds one year. Consequently, the Group applies the practical expedient in IFRS 15.63 and does not adjust the transaction price for the time value of money.
Contract modifications
From time to time, there is a change in scope of the original contract between the Group and a customer. All contract modifications are supported by contractual change orders. Change orders are accounted for as a separate contract when:
-- The change order includes distinct goods or services; and -- The price changes relative to the standalone prices of the goods or services.
If both criteria are not met, the change order is not accounted for as a separate contract and the Group accounts for the change order as if it were part of the performance obligations in the existing contract. The effect of the change order on contract value and progress to date is assessed at the contract modification date and a cumulative catch-up adjustment to revenue is recognised at this point.
Consolidated income statement restatement under IFRS 15
The income statement for H1 2017 and FY 2017 have been restated due to the adoption of IFRS 15. There is also a restatement in H1 2017 for the discontinued operation, which is included in the reconciliation below.
Consolidated interim income statement
For the six months ended 30 June 2017
Reported Restated
6 months Discontinued Impact of 6 months
to 30 June operation IFRS 15 to 30 June
2017 2017
GBP'000 GBP'000 GBP'000 GBP'000
------------ ------------- ---------- ------------
Revenue 13,182 (2,232) (286) 10,664
Cost of revenues (6,311) 1,180 50 (5,081)
------------ ------------- ---------- ------------
Gross profit 6,871 (1,052) (236) 5,583
Operating costs (10,380) 1,081 - (9,299)
------------ ------------- ---------- ------------
Operating loss (3,509) 29 (236) (3,716)
------------ ------------- ---------- ------------
Analysed as:
Gross profit 6,871 (1,052) (236) 5,583
Other operating costs (7,751) 924 - (6,827)
------------ ------------- ---------- ------------
Adjusted EBITDA (880) (128) (236) (1,244)
Exceptionals (607) - - (607)
Depreciation (317) 27 - (290)
Amortisation of acquired
intangibles (826) 51 - (775)
Amortisation of other
intangibles (879) 79 - (800)
------------ ------------- ---------- ------------
Operating loss (3,509) 29 (236) (3,716)
------------ ------------- ---------- ------------
Net finance expense - - - -
------------ ------------- ---------- ------------
Loss before tax (3,509) 29 (236) (3,716)
------------ ------------- ---------- ------------
Income tax 210 (16) - 194
------------ ------------- ---------- ------------
Loss for the period
from continuing operations (3,299) 13 (236) (3,522)
------------ ------------- ---------- ------------
Loss from discontinued
operations - (13) - (13)
------------ ------------- ---------- ------------
Loss for the period
attributable to shareholders
of Brady Plc (3,299) - (236) (3,535)
------------ ------------- ---------- ------------
Consolidated income statement
For the year ended 31 December 2017
Before Impact Before
exceptional Exceptional of exceptional Exceptional
items items Total IFRS 15 items items Total
------------- ------------ ----------- ----------- ------------- ------------ -----------
Reported Reported Reported Restated Restated Restated
12 months 12 months 12 months 12 months 12 months 12 months 12 months
to 31 Dec to 31 Dec to 31 Dec to 31 Dec to 31 Dec to 31 Dec to 31 Dec
2017 2017 2017 2017 2017 2017 2017
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------- ------------ ----------- ----------- ------------- ------------ -----------
Revenue 22,926 - 22,926 (651) 22,275 - 22,275
Cost of revenues (10,018) (267) (10,285) 166 (9,852) (267) (10,119)
------------- ------------ ----------- ----------- ------------- ------------ -----------
Gross profit 12,908 (267) 12,641 (485) 12,423 (267) 12,156
Operating costs (16,872) (2,174) (19,046) - (16,872) (2,174) (19,046)
------------- ------------ ----------- ----------- ------------- ------------ -----------
Operating loss (3,964) (2,441) (6,405) (485) (4,449) (2,441) (6,890)
------------- ------------ ----------- ----------- ------------- ------------ -----------
Analysed as:
Gross profit 12,908 (267) 12,641 (485) 12,423 (267) 12,156
Other operating
costs (12,679) (2,174) (14,853) - (12,679) (2,174) (14,853)
------------- ------------ ----------- ----------- ------------- ------------ -----------
Adjusted EBITDA 229 (2,441) (2,212) (485) (256) (2,441) (2,697)
Depreciation (298) - (298) - (298) - (298)
Amortisation of
acquired
intangibles (1,559) - (1,559) - (1,559) - (1,559)
Amortisation of
other
intangibles (2,336) - (2,336) - (2,336) - (2,336)
------------- ------------ ----------- ----------- ------------- ------------ -----------
Operating loss (3,964) (2,441) (6,405) (485) (4,449) (2,441) (6,890)
------------- ------------ ----------- ----------- ------------- ------------ -----------
Net finance
expense (22) - (22) - (22) - (22)
------------- ------------ ----------- ----------- ------------- ------------ -----------
Loss before tax (3,986) (2,441) (6,427) (485) (4,471) (2,441) (6,912)
------------- ------------ ----------- ----------- ------------- ------------ -----------
Income tax 102 - 102 - 102 - 102
------------- ------------ ----------- ----------- ------------- ------------ -----------
Loss for the
year from
continuing
operations (3,884) (2,441) (6,325) (485) (4,369) (2,441) (6,810)
------------- ------------ ----------- ----------- ------------- ------------ -----------
Loss from
discontinued
operations (1,922) - (1,922) - (1,922) - (1,922)
------------- ------------ ----------- ----------- ------------- ------------ -----------
Loss for the
year
attributable
to shareholders
of Brady Plc (5,806) (2,441) (8,247) (485) (6,291) (2,441) (8,732)
------------- ------------ ----------- ----------- ------------- ------------ -----------
Consolidated statement of financial position restatement under IFRS 15
The statement of financial positions as at 1 January 2017, 30 June 2017 and 31 December 2017 have been restated due to the adoption of IFRS 15.
Reported Impact Restated Reported Impact Restated Reported Impact Restated
of of of
1 Jan IFRS 15 1 Jan 30 Jun IFRS 15 30 Jun 31 Dec IFRS 15 31 Dec
17 17 17 17 17 17
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------- -------- --------- --------- -------- --------- --------- -------- ---------
Non-current
assets 37,035 - 37,035 35,533 - 35,533 26,578 - 26,578
Current
assets
Trade and
other
receivables 7,297 - 7,297 6,949 51 7,000 4,621 166 4,787
Cash and cash
equivalents 7,343 - 7,343 5,038 - 5,038 4,089 - 4,089
Assets
classified
as held for
sale - - - - - - 5,848 - 5,848
--------- -------- --------- --------- -------- --------- --------- -------- ---------
14,640 - 14,640 11,987 51 12,038 14,558 166 14,724
Total assets 51,675 - 51,675 47,520 51 47,571 41,136 166 41,302
--------- -------- --------- --------- -------- --------- --------- -------- ---------
Current
liabilities
Trade and
other
payables (12,669) (1,748) (14,417) (12,447) (2,035) (14,482) (10,734) (2,399) (13,133)
Provisions - - - - - - (350) - (350)
Liabilities
classified
as held for
sale - - - - - - (1,384) - (1,384)
--------- -------- --------- --------- -------- --------- --------- -------- ---------
(12,669) (1,748) (14,417) (12,447) (2,035) (14,482) (12,468) (2,399) (14,867)
Non-current
liabilities (5,670) - (5,670) (5,769) - (5,769) (4,593) - (4,593)
--------- -------- --------- --------- -------- --------- --------- -------- ---------
Total
liabilities (18,339) (1,748) (20,087) (18,216) (2,035) (20,251) (17,061) (2,399) (19,460)
--------- -------- --------- --------- -------- --------- --------- -------- ---------
Net assets 33,336 (1,748) 31,588 29,304 (1,984) 27,320 24,075 (2,233) 21,842
--------- -------- --------- --------- -------- --------- --------- -------- ---------
Equity
Share capital
and premium 37,930 - 37,930 38,120 - 38,120 38,120 - 38,120
Treasury
shares (3) - (3) (3) - (3) (3) - (3)
Other
reserves (1,888) - (1,888) (3,086) - (3,086) (3,714) - (3,714)
Retained
earnings (2,703) (1,748) (4,451) (5,727) (1,984) (7,711) (10,328) (2,233) (12,561)
--------- -------- --------- --------- -------- --------- --------- -------- ---------
Total equity 33,336 (1,748) 31,588 29,304 (1,984) 27,320 24,075 (2,233) 21,842
--------- -------- --------- --------- -------- --------- --------- -------- ---------
Consolidated cashflow statement restatement under IFRS 15
As a result of adoption of IFRS 15, certain reclassifications are required in relation to the composition of cashflows generated from / (used in) operations, however there is no overall change to the primary headings of the consolidated cashflow statement.
15. Financial statements
The financial information for the year ended 31 December 2017 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 2017 have been filed with the Registrar of Companies. This statement can be obtained from the Company's registered office at Centennium House, 100 Lower Thames Street, London, EC3R 6DL and are available on the Company's website www.bradyplc.com.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR LLFIIAEIAIIT
(END) Dow Jones Newswires
September 10, 2018 02:00 ET (06:00 GMT)
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