We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
| 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 : 4888H
Brady plc
13 March 2018
13 March 2018
Brady plc ("Brady" or the "Group")
PRELIMINARY RESULTS
For the year ended 31 December 2017
Brady plc (BRY.L), a global provider of trading, risk management and settlement solutions to the energy and commodities sectors, is pleased to announce its unaudited preliminary results for the year ended 31 December 2017.
Financial Summary
Hot Features
Premium
Unaudited
2017 2016
GBP'000 GBP'000
Revenues - Continuing 22,926 25,373
Revenues - Recycling 4,220 4,896
---------- ----------
Revenues - Total 27,146 30,269
EBITDA before exceptional
costs (1) - Continuing 229 3,273
EBITDA before exceptional
costs (1) - Recycling 383 1,254
---------- ----------
EBITDA before exceptional
costs (1) - Total 612 4,527
Operating loss after exceptional
costs (2) (6,405) (1,577)
Operating loss before exceptional
costs (2) (3,964) (418)
Loss after tax and exceptional
costs (6,325) (2,731)
Basic loss per share (in
pence) (9.90) (2.23)
Adjusted (loss)/earnings
per share (in pence) (3) (5.01) 2.40
Cash - Continuing 4,089 6,565
Cash - Recycling 265 778
---------- ----------
Cash - Total 4,354 7,343
On 25 January 2018 the US Recycling business was sold to AMCS Group. The business has been treated as a disposal group in the preliminary financial information and has therefore been excluded from the statutory definition of revenue and costs, and the prior year comparatives have also been re-stated to exclude the US Recycling business. The performance of the Recycling business in 2017, together with the write down of the assets to the net sale proceeds have been brought into the income statement as a single line and classified as discontinued operations. In order to facilitate a comparison to reported prior year results the analysis above shows the results of the Recycling business for revenues, adjusted EBITDA and cash.
(1) EBITDA before exceptional costs comprises operating profit before depreciation, amortisation and exceptional costs
(2) The majority of exceptional items comprise costs relating to the functional transformation of the Group
(3) Adjusted earnings per share is based on earnings excluding exceptional items, acquired intangible asset amortisation charges and share based compensation charges and at a consistent normalised tax rate assumed to be 15%
Operational Highlights
-- During the year we have streamlined the group's structure into three distinct areas: Value Enablement, Business Enablement and Product teams;
-- Focussed the business to concentrate on our core Commodities and Energy products;
-- Sold the Recycling business to AMCS for $6.5 million, allowing us to strengthen our balance sheet;
-- Put in place the overarching product design that will enable us to deliver new and innovative products;
-- Delivered new product functionality for our Concentrates solution, created a consolidated Energy platform for the Integrated Single Electricity Market and developed new functionality to support market changes for Elhub in the Nordic market and LME Smart for the London Metals exchange;
-- Continued our transition to a recurring revenue model with recurring revenues rising to 66% from 62%; and
-- Secured seven new customers in our core E/CTRM markets.
Outlook
Going into 2018 we have a business staffed by great people, with products that are leading edge, as evidenced by two new contract wins in 2018 already. We have committed revenues of approximately GBP19 million and we have cash on the balance sheet of GBP4.1 million at 31 December 2017, and disposal proceeds of GBP3.6 million received after the year end. We are highly regarded in our industry and we have a robust financial position. The period of consolidation and re-structuring is complete; in 2018 we expect to resume progress in both sales and profitability.
Ian Jenks, Executive Chairman, said,
"The strategy and plan put in place by the Board towards the end of 2016 have not changed. As with all transformations the beginning sees a lot of significant change being implemented and hard work being completed to lay the bedrock for the future of the Company. We have completed most of the work and recalibration. The fundamental pillars of the plan that we set out in last years' annual report have continued and, as a result, we are firmly on course to deliver a growth company with strong IP, a strong base of blue chip customers, a high-quality revenue stream and a high level of recurring earnings".
For further information please contact:
Brady plc Ian Jenks, Executive Chairman Telephone: +44(0)1223 Martin Thorneycroft, CFO 479479 Cenkos Securities plc Telephone: +44 (0)20 Camilla Hume/Mark Connelly 7397 8900 Redleaf Communications Charlie Geller Telephone: +44 (0)20 Ian Silvera 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 and unrefined, soft commodities and agriculturals.
Brady has 30 years' expertise in the commodity markets with some 300 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, 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 strategy and plan put in place by the Board towards the end of 2016 have not changed. As with all transformations the beginning sees a lot of significant change being implemented and hard work being completed to lay the bedrock for the future of the Company. We have now completed most of the work and recalibration. The fundamental pillars of the plan that we set out in last years' annual report have not changed. As a result, we believe we are firmly on course to deliver a growth company with strong IP, a strong base of blue chip customers, a high-quality revenue stream with a high level of recurring earnings.
Strategic progress
At the beginning of 2017 we set out our priorities for the year and our progress against those items is as follows:
Complete our strategic plan: During the year we reviewed all our product lines and the markets that they addressed. We concluded that we wanted to focus on our core markets in Commodities and Energy where we had the best market positions. As a result, we chose to sell the Recycling business to AMCS. The transaction closed in January 2018 and as well as allowing us to focus, it also strengthens our balance sheet with the addition of GBP3.6 million of cash on 25 January 2018 and a further GBP1.0 million due in July 2019.
Complete our Company re-organisation: We started the year organising ourselves by function with global function-based heads in place. In Q4 we further improved accountability and ownership by simplifying our structure into three teams.
-- The Value Enablement team, led by Scott Hestenes, now incorporates account management and is responsible for all sales to both new and existing customers.
-- The Product team, led by our new Chief Product Officer, Libby Koehn, now covers all aspects of our product from market analysis, through research and development to customer delivery.
-- The Business Enablement team, led by our Chief Financial Officer, Martin Thorneycroft, is responsible for delivering support to the business from finance, human resources and business systems.
Accelerate the move of our business model towards recurring fees: This is now our default position when quoting new business. During the year we delivered GBP0.2 million of new business on this basis (GBP0.8 million on an annualised basis) and our recurring revenues rose from 62% to 66% of total revenues. This transformation will lead to higher quality and more predictable earnings.
Catch up on our technical debt and delivery backlog: After many years of under-investment we have made a substantial investment in catching up our deliveries and had a number of important "go-lives" on trading desks with our key Fintrade customers. During the year we also invested in delivering further developments on the Concentrates product, a consolidated Energy platform for the Integrated Single Electricity Market and new functionality to support market changes for Elhub in the Nordic market and LME Smart for the London Metals exchange.
Re-architect our product: We now have in place the overarching product design that will enable us to deliver new and innovative product functionality on a progressive basis to our customers and to consolidate the functionality of our various products within a reduced number of platforms.
Put our people first: The transformation that we are going through, and the scale of the changes we are implementing inevitably throw up challenges for our team to solve. In Q3 we undertook an independent survey of our employees which highlighted the need for the senior team to do a better job of engaging with employees. We have put in place a plan, that included the organisational changes already mentioned, to make sure that this happens.
As mentioned above, on 25 January 2018 the US Recycling business was disposed of by the Group for a total of GBP4.6 million. This business has been treated a disposal group in the preliminary financial information and has therefore been excluded from the statutory definition of revenue and costs, and the prior year comparatives have also been re-stated to exclude the US Recycling business. The performance of the Recycling business in 2017, together with the write down of the assets to the net sale proceeds, have been brought into the income statement as a single line and classified as discontinued operations.
In 2017, revenue for the Recycling business was GBP4.2 million, adjusted EBITDA was GBP0.4 million, and operating profit before adjustments to the carrying value of net assets was GBP0.1 million.
For the continuing businesses in 2017, i.e. excluding Recycling, our revenues were GBP22.9 million and adjusted EBITDA was GBP0.2 million. We continued our transition to a recurring revenue model and signed new agreements worth GBP0.8 million per annum in a full year with recurring revenues rising from 62% to 66% for the continuing business.
Our operating loss before exceptional items was GBP4.0 million for the continuing business compared with a loss of GBP0.4 million in 2016. This year we incurred non-recurring costs of GBP2.4 million, to reorganise the business and to address contractual disputes. The reorganisation is substantially complete and we do not expect to incur any more of these types of costs in 2018.
We start 2018 with committed recurring revenues and contracted development and services revenues of approximately GBP19 million and cash on hand of GBP4.1 million. On 25 January 2018 we received the first tranche of the disposal proceeds for the Recycling division of GBP3.6 million.
I would like to thank all Brady employees for their exceptional hard work during the year which means that we have in place the structure and teams to execute on the 2018 strategic imperatives which are to:
-- Deliver a customer centric experience to the market -- Re-establish our technology and product leadership -- Create simplicity and efficiency in our organisation -- Create a high-performance culture and company
Summary and outlook
Going into 2018 we have a business staffed by great people, with products that are leading edge, as evidenced by two new contract wins in 2018 already. We have committed revenues of approximately GBP19 million and we have cash on the balance sheet of GBP4.1 million at 31 December 2017, and disposal proceeds of GBP3.6 million received in January 2018. We are highly regarded in our industry and we have a robust financial position. The period of consolidation and re-structuring is complete; in 2018 we expect to resume progress in both sales and profitability and look to the future of the Group with confidence.
Ian Jenks
Executive Chairman
Operating review
New Customers
In 2017 we secured seven new customers in our core E/CTRM markets, up from four in 2016. One of our key strategic initiatives for 2017 was to build on our market leading position in the Nordic Energy markets to develop other European markets as they deregulate. Our first target was the Integrated Single Electricity Market (I-SEM) and we have been successful in securing three new customers that serve that market.
New Organisation
In 2017 we did much of the work required to move forward with our functional reorganisation. This included the Company wide role out of the core business systems needed to create a strong support, services and development organisation committed to a "One Brady" way of working. We continue to simplify and refine those systems to give us the operational leverage that will enable us to grow efficiently. As part of our strategic review we decided to complete the consolidation of the various code bases of our Brady Credit Risk product line and subsequently reduced the size of the Bangalore team from 34 to 14 employees. We are committed to a continuous process to deliver simplicity and efficiency in our business.
In line with the strategic review conducted earlier in 2017, we decided to exit the Recycling business and completed the disposal on 25 January 2018.
We enter 2018 with our three business functions; Value Enablement, Product and Business Enablement. Our goal for this year is to re-examine our business processes and reduce the level of complexity that has resulted from the initial consolidation and subscribe the mantra of "One way of doing things "One Brady"".
New Products
We are always adding new and expanding existing functionality to our product suite and this year was no exception. In 2017 we introduced some major new features in our concentrates products, added LME Smart to our commodity offering, and Elhub and I-SEM functionality to our energy products.
Concentrates
We have further integrated and expanded the functionality of our concentrate trading module into our core physical trading solution allowing customers to capture concentrates and refined metal in a single solution. This integration extends our offering with enhanced inventory management, trade finance, flexible rule definition and assay exchange, covering the entire workflow for metal and concentrate traders and provides the most comprehensive concentrates solution available in the market. We will continue to add additional functionality to this platform during this year.
LME
Over the year we have been developing our solution for LME brokers to support a continuing programme of change at the LME in adding further products and to support regulatory changes for MIFID II. Working closely with a user group of brokers we delivered the necessary changes to meet the regulatory deadlines and provide transaction and position reporting for MIFID compliance. The LME's "Strategic Pathway" will drive further changes in the coming year as they continue to adapt and add further products.
Elhub
The Elhub project in Norway represents a substantial market and regulatory shift of the power industry towards going digital, facilitating a supplier centric model as well as optimise the usage of smart meters. The aim is to reduce manual processing and automate market processes. Elhub will be the central datahub for managing all meter data as well as supporting central market processes. Brady has adapted its core physical trading platform, back-office settlement and communications solution for being able to support Elhub. The project was initiated by Brady in close collaboration with its Norwegian customers and is now in the process of being completed. The last major milestone was M7 systems approval and Brady has delivered all milestones according to the overall national implementation plan. Brady will be up and running, ready to support our customers in managing the cut-over as planned for February 2019.
Integrated Single Electricity Market
The Integrated Single Electricity Market (I-SEM) is the new wholesale electricity market arrangement for Ireland and Northern Ireland which is designed to integrate the all-island electricity market with European electricity markets, enabling the free flow of energy across borders. Brady was one of the first movers in making a commitment to adapt our energy systems portfolio to these new market changes. Brady's I-SEM front-to-back office solution, covering financial and physical trading has passed market conformance testing and will from the date of go-live be ready to support our customers in managing trading operations.
Ian Jenks
Executive Chairman
Financial review
Introduction
On 25 January 2018 the US Recycling business was sold to AMCS Group. The business has been treated as a disposal group in the preliminary financial information and has therefore been excluded from the statutory definition of revenue and costs, and the prior year comparatives have also been re-stated to exclude the US Recycling business. The performance of the Recycling business in 2017 together with the write down of the assets to the net sale proceeds have been brought into the income statement as a single line, and classified as discontinued operations. In order to facilitate a comparison to reported prior year results the analysis below has been done both including and excluding the Recycling business. The details of the disposal and the impact of the disposal on the Group are also shown below.
Group trading performance
Revenue mix (Continuing business)
The revenue composition is summarised in the tables below:
2017 2016
GBP million % of GBP % of
total million total
========================== ============= ============= =========== ========
Recurring revenues 15.2 66% 15.8 62%
Services and development
revenues 5.3 24% 7.0 28%
Licence revenues 2.4 10% 2.6 10%
========================== ============= ============= =========== ========
Total revenues 22.9 100% 25.4 100%
========================== ============= ============= =========== ========
In 2017 the Board took the strategic decision, where possible, to renew contracts on a recurring basis and accordingly during the year the Board elected to replace GBP1.7 million of one-off licence revenues, with rolling agreements providing recurring licence revenues, with an annual value of GBP0.8 million for an initial five-year term and rolling annually thereafter.
Revenue within the continuing businesses (Energy and Commodities products) fell in total to GBP22.9 million, a decline of 10%. Recurring revenues now comprise 66% (2016: 62%) of our total revenues. New recurring revenues recognised in the year amounted to GBP0.2 million (GBP0.8 million on a full year basis). The impact in 2017 of lost revenues from customers who gave notice to leave in 2016 was GBP1.1 million. There was no impact in 2017 from customers who gave notice to leave in 2017, however, the impact in 2018 will be GBP0.3 million. Services and development revenues at GBP5.3 million, were down GBP1.7 million on 2016, partly due to slippage of GBP0.8 million on certain projects into 2018. The reduction in licence revenues is due to our strategic focus of recurring revenues as we transition the business to the recurring revenue model.
Revenue mix (Continuing and discontinued businesses)
The revenue composition is summarised in the tables below:
2017 2016
GBP million % of GBP % of
total million total
========================== ============= ============= =========== ========
Recurring revenues 18.0 66% 18.4 61%
Services and development
revenues 6.4 24% 8.4 28%
Licence revenues 2.7 10% 3.5 11%
========================== ============= ============= =========== ========
Total revenues 27.1 100% 30.3 100%
========================== ============= ============= =========== ========
In addition to the movements in revenue set out above for the continuing businesses, the Recycling operations had lower licence sales in 2017 and consequently lower services and development revenues.
Gross margin
The overall gross margin before exceptional items for the continuing business decreased to 56% (2016: 61%) as a result of the reduction in the higher margin recurring and licence revenues. Gross margin before exceptional items for the continuing and discontinued business decreased from 61% in 2016 to 56% in 2017 mainly as a result of the reduction in one off licence sales in the Recycling business.
Profitability
For the continuing business adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) before exceptional items decreased to GBP0.2 million (2016: GBP3.3 million). Including the discontinued business, adjusted EBITDA before exceptional items decreased to GBP0.6 million (2016: GBP4.5 million).
Operating loss before exceptional items and tax increased to a loss of GBP4.0 million (2016: GBP0.4 million loss). Loss after exceptional items and tax increased to GBP6.3 million (2016: GBP2.7 million loss) for the continuing business.
Research and development expenditure
Total research and development spend for the continuing business amounted to GBP7.5 million (2016: GBP4.9 million). Of this, GBP5.4 million was expensed (2016: GBP3.6 million) and GBP2.1 million (2016: GBP1.3 million) was capitalised. This was a year of substantially increased investment in R&D to catch up on our technical debt and delivery backlog. During the year notable developments were made to the Concentrates product and a new platform for trading on I-SEM was built. Significant new functionality was added to support market changes for Elhub and LME Smart.
Capitalised development, which is referred to internally within Brady as Strategic Software Development (SSD), represents large strategic developments of significant new modules or functionality. These projects are selected and approved by the Board as part of the business planning and budget process. The largest single capitalised project in 2017 was GBP0.5 million (2016: GBP0.6 million) in respect of the further development of a concentrates module for the Fintrade product. This allows a customer to trade refined and unrefined metals, concentrates, raw materials, softs and agricultures all on one platform and gives Brady a unique position in the market. SSD for 2018 is expected to be approximately GBP3 million.
Foreign exchange rates
Foreign exchange rates used to translate the balance sheets of our subsidiaries at the 31 December have weakened against Sterling between 2016 and 2017. However, the average exchange rates used to translate the Income Statements of our subsidiaries have strengthened significantly against sterling because most of the first half of 2016 was translated at pre-Brexit rates. Compared to the 2016 average rates the 2017 average rates for the US dollar, Norwegian Krone and Swiss franc all strengthened against sterling by 5%, 7% and 6% respectively. The impact of this for the continuing business was to increase both revenue and cost by GBP0.9 million respectively. Including the discontinued business the impact was an increase in revenue of GBP1.1 million and an increase in cost of GBP1.1 million.
Exceptional items and disposal of the Recycling business
The exceptional items comprise:
-- GBP1.8 million of functional transformation costs. Of which GBP0.7 million was in relation to consultants and temporary staff costs; GBP0.5 million was in respect of redundancies, GBP0.4 million was in respect of recruitment costs and GBP0.2 million in respect of a legal claim. The functional transformation is now substantially complete and we do not expect to incur any more of these types of costs in 2018;
-- GBP0.6 million in respect of a bad debt provision and a potential legal claim resulting from certain contractual disputes
Disposal of the Recycling business
The Recycling business was disposed of on 25 January 2018 and has therefore been accounted for as a disposal group. Its financial performance for the year to 31 December 2017 has been brought into the consolidated income statement as a single line together with an adjustment to write down the net assets to its disposal carrying value. The analysis of performance for 2017 and 2016 together with the fair value adjustments is shown below:
2017 2016
GBP'000 GBP'000
-------------------------- ---------- ---------
Revenue 4,220 4,896
Cost of revenues (1,960) (2,061)
----------------------------- ---------- ---------
Gross profit 2,260 2,835
Operating expenses (2,198) (1,884)
----------------------------- ---------- ---------
Operating profit
before adjustments
to write down carrying
value of net assets 62 951
----------------------------- ---------- ---------
Analysed as:
Gross profit 2,260 2,835
Operating expenses (1,877) (1,581)
----------------------------- ---------- ---------
Adjusted EBITDA
before adjustments
to write down carrying
value of net assets 383 1,254
Depreciation (48) (58)
Amortisation of
acquired intangible
assets (84) (100)
Amortisation of
other intangible
assets (189) (145)
----------------------------- ---------- ---------
Operating profit
before adjustments
to write down carrying
value of net assets 62 951
----------------------------- ---------- ---------
Adjustments to (1,906) -
write down net
assets to carrying
value at disposal
-------------------------- ---------- ---------
Operating (loss)/profit
after adjustments
to write down carrying
value of net assets (1,844) 951
Net finance income - -
-------------------------- ---------- ---------
(Loss)/profit before
tax (1,844) 951
Income tax (190) (73)
Adjustment to deferred 112 -
tax
(Loss)/profit from
discontinued operations (1,922) 878
----------------------------- ---------- ---------
Cash received on 25 January 2018 amounted to GBP3.6 million with the balance of GBP1.0 million to be paid 18 months from date of disposal.
Income tax
The overall tax credit for the year was GBP0.1 million (2016: GBP1.2 million charge). The charge in 2016 was higher as the Group provided additional tax of GBP1.0 million in relation to an ongoing tax enquiry in an overseas jurisdiction. There were no significant developments on this matter during 2017.
Earnings and dividends
After including the exceptional charges, the loss after tax increased to a loss of GBP8.2 million (2016: GBP1.9 million loss).
The weighted average number of shares in issue increased to 83.3 million (2016: 83.1 million). Basic and diluted loss per share was 9.90 pence per share (2016: loss per share of 2.23 pence). Adjusted earnings per share, as calculated by market analysts, adjusted to exclude share-based payments, amortisation of acquired intangible assets, exceptional items and, assuming a consistent normalised tax rate of 15%, decreased to 5.01 pence loss per share (2016: 2.40 pence profit per share).
The Board does not propose a dividend for the year.
Share issues
285,000 (2016: 100,000) share options held under the Company's share option schemes were exercised. The exercise proceeds following the exercise of these share options were GBP190,000 (2016: GBP47,000).
Treasury shares
The total number of ordinary shares held in treasury during the year remained at 4,306 (2016: 4,306).
Consolidated Statement of Financial Position
The Group continues to retain a strong balance sheet, with significant cash reserves and no debt.
Non-current assets
Goodwill decreased to GBP15.7 million from GBP21.7 million mainly as a result of the reclassification of the Recycling business to a disposal group (GBP4.4 million) together with a foreign exchange loss of GBP1.6 million.
Acquired software decreased to GBP3.2 million from GBP5.4 million and acquired customer relationships decreased to GBP1.3 million from GBP2.6 million as a result of the reclassification of the Recycling business, and amortisation during the period.
Excluding the Recycling business, the Group capitalised GBP2.1 million (2016: GBP1.3 million) of expenditure in relation to Strategic Software Development programmes. The Group has a continued commitment of enhancing and expanding its offerings and taking its technology forward. The bulk of expenditure incurred during the year on research and development was, however, expensed as incurred. Net of the reclassification of the Recycling business and amortisation to date, the book value of capitalised development costs decreased to GBP5.5 million (2016: GBP6.3 million).
Current assets
After adjusting for the current assets of the Recycling business, trade and other receivables decreased to GBP4.6 million (2016: GBP7.3 million), included in this, amounts recoverable on contracts decreased to GBP0.4 million (2016: GBP1.1 million). Amounts recoverable on contracts arises principally on consulting and professional services revenue which is typically invoiced in the month following provision of the service.
Current liabilities
After adjusting for the current liabilities of the Recycling business, trade and other payables decreased to GBP10.7 million (2016: GBP12.7 million). Included in this, deferred income decreased to GBP5.4 million (2016: GBP6.9 million). Deferred income arises principally as a consequence of payments received in advance of revenue recognition with respect to both rental and licence revenues.
Cash and cash flow
Operating cash generation was GBP(0.1) million (2016: GBP2.3 million).
The Group had investment outflows of GBP2.8 million (2016: GBP2.5 million), as spending on SSD increased in 2017 compared to the prior year.
Cash in hand at 31 December 2017 for the continuing operations was GBP4.1 million. Cash received on disposal of the Recycling business on 25 January 2018 amounted to GBP3.6 million.
Martin Thorneycroft
Chief Financial Officer
Consolidated income statement
For the year ended 31 December 2017
Unaudited
Before Unaudited Before
exceptional Exceptional exceptional Exceptional
items items Unaudited items items
2017 2017 2017 2016 2016 2016
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
========================= ======== ============= ============= =========== ============= ============ =========
Revenue 3 22,926 - 22,926 25,373 - 25,373
Cost of revenues (10,018) (267) (10,285) (9,804) - (9,804)
========================= ======== ============= ============= =========== ============= ============ =========
Gross profit 12,908 (267) 12,641 15,569 - 15,569
Operating expenses (16,872) (2,174) (19,046) (15,987) (1,159) (17,146)
========================= ======== ============= ============= =========== ============= ============ =========
Operating loss (3,964) (2,441) (6,405) (418) (1,159) (1,577)
========================= ======== ============= ============= =========== ============= ============ =========
Analysed as:
Gross profit 12,908 (267) 12,641 15,569 - 15,569
Other operating
expenses (12,679) (2,174) (14,853) (12,296) (1,159) (13,455)
========================= ======== ============= ============= =========== ============= ============ =========
Adjusted EBITDA 229 (2,441) (2,212) 3,273 (1,159) 2,114
Depreciation (298) - (298) (620) - (620)
Amortisation of
acquired intangible
assets (1,559) - (1,559) (1,618) - (1,618)
Amortisation of
other intangible
assets (2,336) - (2,336) (1,453) - (1,453)
Operating loss (3,964) (2,441) (6,405) (418) (1,159) (1,577)
========================= ======== ============= ============= =========== ============= ============ =========
Net finance (expense)/
income (22) - (22) 3 - 3
========================= ======== ============= ============= =========== ============= ============ =========
Loss before tax (3,986) (2,441) (6,427) (415) (1,159) (1,574)
Income tax 5 102 - 102 (188) (969) (1,157)
========================= ======== ============= ============= =========== ============= ============ =========
Loss for the year
from continuing
operations (3,884) (2,441) (6,325) (603) (2,128) (2,731)
========================= ======== ============= ============= =========== ============= ============ =========
(Loss)/profit from
discontinued operations 6 (1,922) - (1,922) 878 - 878
========================= ======== ============= ============= =========== ============= ============ =========
(Loss)/profit for
the year (5,806) (2,441) (8,247) 275 (2,128) (1,853)
------------------------- -------- ------------- ------------- ----------- ------------- ------------ ---------
Loss per share attributable to the
equity shareholders of the Parent
Company (pence)
Basic 7.1 (9.90p) (2.23p)
Diluted 7.1 (9.90p) (2.23p)
========================= ======== ============= ============= =========== ============= ============ =========
The accompanying notes are an integral part of this preliminary financial information.
Consolidated statement of comprehensive income
For the year ended 31 December 2017
Unaudited
2017 2016
GBP'000 GBP'000
----------------------------------- ---------- ---------
Loss for the year (8,247) (1,853)
Other comprehensive
(loss)/income:
Items that may be reclassified
subsequently to profit
and loss
Exchange differences
on retranslation of
foreign operations (1,419) 5,566
Exchange differences (57) -
relating to discontinued
operations
Items that will not
be reclassified subsequently
to profit and loss
Remeasurements of post-employment
benefit obligations 261 10
====================================== ========== =========
Other comprehensive
(loss)/income for the
year (1,215) 5,576
-------------------------------------- ---------- ---------
Total comprehensive
(loss)/income for the
year (9,462) 3,723
-------------------------------------- ---------- ---------
The accompanying notes are an integral part of this preliminary financial information.
Consolidated statement of changes in equity
For the year ended 31 December 2017
Unaudited
Share
capital Other Other Retained
& premium equity reserves earnings Total
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 year - - - (1,853) (1,853)
Other comprehensive
income - - 5,566 10 5,576
----------------------------- ----------- --------- ---------- ---------- ---------
Total comprehensive
income/(loss) for the
year - - 5,566 (1,843) 3,723
Reserve credit for
equity-settled share-based
payments - - 90 - 90
Transfer for exercised
& forfeited share options - - (247) 247 -
Issue of new share
capital 47 - - - 47
============================= =========== ========= ========== ========== =========
Transactions with owners 47 - (157) 247 137
============================= =========== ========= ========== ========== =========
Balance at 31 December
2016 37,930 (3) (1,888) (2,703) 33,336
----------------------------- ----------- --------- ---------- ---------- ---------
Loss for the year - - - (8,247) (8,247)
Other comprehensive
(loss)/income - - (1,476) 261 (1,215)
----------------------------- ----------- --------- ---------- ---------- ---------
Total comprehensive
loss for the year - - (1,476) (7,986) (9,462)
Reserve credit for
equity-settled share-based
payments - - 11 - 11
Transfer for exercised
& forfeited share options - - (361) 361 -
Issue of new share
capital 190 - - - 190
============================= =========== ========= ========== ========== =========
Transactions with owners 190 - (350) 361 201
============================= =========== ========= ========== ========== =========
Balance at 31 December
2017 38,120 (3) (3,714) (10,328) 24,075
----------------------------- ----------- --------- ---------- ---------- ---------
A reconciliation of the components of Other reserves is given in note 11.
The accompanying notes are an integral part of this preliminary financial information.
Consolidated statement of financial position
As at 31 December 2017
Unaudited
2017 2016
Notes GBP'000 GBP'000
------------------------------- ------ ---------- ---------
Assets
Non-current assets
Intangible assets 26,091 35,999
Property, plant and
equipment 487 978
Deferred income tax
asset - 58
------------------------------- ------ ---------- ---------
Total non-current assets 26,578 37,035
------------------------------- ------ ---------- ---------
Current assets
Trade and other receivables 4,621 7,297
Cash and cash equivalents 8 4,089 7,343
Assets classified as
held for sale 6.3 5,848 -
------------------------------- ------ ---------- ---------
Total current assets 14,558 14,640
------------------------------- ------ ---------- ---------
Total assets 41,136 51,675
------------------------------- ------ ---------- ---------
Liabilities
Current liabilities
Trade and other payables (10,734) (12,669)
Provisions (350) -
Liabilities classified
as held for sale 6.3 (1,384) -
Total current liabilities (12,468) (12,669)
------------------------------- ------ ---------- ---------
Non-current liabilities
Deferred income tax
liabilities (2,099) (2,938)
Pension obligations (2,494) (2,732)
------------------------------- ------ ---------- ---------
Total non-current liabilities (4,593) (5,670)
------------------------------- ------ ---------- ---------
Total liabilities (17,061) (18,339)
------------------------------- ------ ---------- ---------
Net assets 24,075 33,336
------------------------------- ------ ---------- ---------
Equity attributable to owners
of the parent company
Share capital and share
premium 9 38,120 37,930
Treasury shares 10 (3) (3)
Other reserves 11 (3,714) (1,888)
Retained earnings (10,328) (2,703)
------------------------------- ------ ---------- ---------
Equity attributable
to shareholders of the
Company 24,075 33,336
------------------------------- ------ ---------- ---------
The accompanying notes are an integral part of this preliminary financial information.
Consolidated statement of changes in cash flows
For the year ended 31 December 2017
Unaudited
2017 2016
Notes GBP'000 GBP'000
---------------------------------- ------ ---------- ---------
Loss before tax continuing
operations (6,427) (1,574)
Loss before tax discontinued
operations 6.2 (1,844) 951
Adjustments for:
Write down of carrying
value of net assets
for discontinued operations 6.2 1,906 -
Depreciation 346 678
Amortisation of acquired
intangible assets 1,643 1,718
Amortisation of other
intangible assets 2,525 1,598
Loss from disposal of 5 -
property, plant and
equipment
Share-based payments
charge 11 90
Non-cash movement of 134 -
defined benefit pension
charge
Net finance expense
/ (income) 22 (3)
---------------------------------- ------ ---------- ---------
Operating cash flows
before working capital
movement (1,679) 3,458
Change in receivables 1,602 332
Change in payables (589) (1,053)
Change in provisions 350 -
---------------------------------- ------ ---------- ---------
Cash used in operations
before tax (316) 2,737
---------------------------------- ------ ---------- ---------
Net income taxes received/(paid) 247 (428)
---------------------------------- ------ ---------- ---------
Net cash flows from
operating activities (69) 2,309
3)
---------------------------------- ------ ---------- ---------
Cash flows from investing
activities
Acquisition of subsidiaries,
net of cash acquired - (326)
Purchases of property,
plant and equipment (314) (612)
Expenditure on intangible
assets (2,492) (1,555)
Interest received - 3
---------------------------------- ------ ---------- ---------
Net cash flows from
investing activities (2,806) (2,490)
---------------------------------- ------ ---------- ---------
Cash flows from financing
activities
Proceeds from the issue
of ordinary share capital 9 190 47
Interest paid (22) -
---------------------------------- ------ ---------- ---------
Net cash flows from
financing activities 168 47
---------------------------------- ------ ---------- ---------
Net decrease in cash
and cash equivalents (2,707) (134)
Cash and cash equivalents
at start of year 7,343 6,594
Exchange differences on
cash and cash equivalents
7 (282) 883 ------------------------------------------ ---------- --------- Cash and cash equivalents at end of year 8 4,354 7,343 ---------------------------------- ------ ---------- ---------
The accompanying notes are an integral part of this preliminary financial information.
1 General information
Brady plc ("the Company") and its subsidiaries (together, "the Group") provides trading and risk management software to the global commodity and energy markets.
The Company is a public limited company which is listed on the Alternative Investment Market ("AIM") of the London Stock Exchange (BRY) and is incorporated and domiciled in England and Wales. The address of its registered office, which is also its principal place of business, is 2A Southwark Bridge Road, London, SE1 9HA.
The Group has its main operations in the UK, Switzerland, Norway, USA, Singapore and India and sells mainly in Europe, North America and Asia Pacific. The Group legally consists of 22 companies headed by Brady plc (UK) at 31 December 2017.
The preliminary financial information has been approved for issue by the Board of Directors on 12 March 2018.
2 Significant accounting policies
Alternative performance measures
The Group uses alternative (non-Generally Accepted Accounting Practice ('non-GAAP')) performance measures of 'Adjusted EBITDA' and 'Adjusted earnings per share (EPS)'. These measures are not defined within the International Financial Reporting Standards (IFRS) and, therefore, these measures as defined by the Group may not be comparable with similarly titled measures used by other companies. The Directors do not regard these measures as a substitute for, or superior to, the equivalent measures calculated and presented in accordance with IFRS. The Directors present these measures in the financial statements in order to assist investors in their assessment of the trading performance of the Group. Adjusted EBITDA and Adjusted diluted EPS exclude specific items that are considered to hinder comparison of the trading performance of the Group's businesses either year on year or with other businesses and are used for internal performance analysis and in relation to certain employee incentive arrangements. The measures are explained as follows:
(a) Adjusted EBITDA: The Group calculates this measure by making adjustments to exclude certain items from operating profit or loss namely: amortisation or impairment of acquired and other intangible assets, depreciation and exceptional items such as acquisition, integration or reorganisation costs that meet the criteria to be adjusted.
The criteria for the adjusted items in the calculation of adjusted EBITDA is operating income or expenses that are material and either arise from an irregular and significant event or the income/cost is recognised in a pattern that is unrelated to the resulting operational performance. The calculation of this measure is shown on the Consolidated Income Statement.
(b) Adjusted earnings per share ('EPS'): The Group calculates this measure by dividing adjusted profit after tax by the weighted average number of shares in issue and the calculation of this measure is disclosed in Note 7. The tax rate applied to calculate the tax charge in this measure is a normalised tax rate for the year which is 15% (2016: 15%) which results in a comparable tax charge year on year. The Group also calculates this measure by excluding amortisation on acquired intangible assets, share-based payments charge, exceptional items such as acquisition, integration or reorganisation costs, and the actual tax charge from the measurement of loss for the year.
The adjusted EPS information is considered to provide a fairer representation of the Group's trading performance.
Segment reporting
IFRS 8 requires a "management approach" under which information in the financial statements is presented on the same basis as that used for internal management reporting purposes. Segment results are reported according to the internal management reporting structure at the reporting date.
Following the functional transformation of the business, effective 1 January 2017, the Group is now organised for reporting purposes into a single, global business unit. In the previous year, the Group was organised into three business units comprising different market sectors within the ECTRM market and each business unit was able to operate globally, being Commodities, Energy and Recycling.
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.
Exceptional items
Material, non-recurring and incremental costs and income are identified and reported as exceptional items separately from the underlying operating expenses and income. They comprise material amounts outside of the course of normal trading activities which are one off/non-recurring.
Discontinued operations
A discontinued operation is a component of the Group that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the income statement and are shown net of tax.
Held for sale assets and liabilities
Where an asset or group of assets (a disposal group) is available for immediate sale and the sale is highly probable and expected to occur within one year, the disposal group is deemed held for sale. At this point the gross assets and gross liabilities of the disposal group are shown separately as held for sale. The value of the disposal group is measured at the lower of the carrying amount and fair value less costs of disposal.
3 Segmental information
3.1 Results by operating segment
IFRS 8 requires a "management approach" under which information in the financial statements is presented on the same basis as that used for internal management reporting purposes.
Following the functional transformation of the business, effective 1 January 2017, the Group is now organised for reporting purposes into a single, global business unit. This is the basis of the Group's external market offering and internal organisational and management structure. The Chief Operating Decision Maker (CODM), which is the Operating Board comprising the 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.
3.2 Revenue by nature
The Operating Board consider that the business has three revenue streams with different characteristics, which are generated from the same assets and cost base.
2017 2016
GBP'000 GBP'000
-------------------- ------------ ----------------
Recurring support,
maintenance and
rentals 15,202 15,774
Services including
development 5,318 6,968
Software licences 2,406 2,631
---------------------- ------------ ----------------
Total revenues 22,926 25,373
---------------------- ------------ ----------------
3.3 Geographical areas
The Group's revenue from external customers and information about its non-current assets (excluding deferred tax) by geography is detailed below:
Non-current
Revenue assets
---------------- -------------------------- --------------------------
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
---------------- ------------ ------------ ------------ ------------
UK 3,276 4,356 7,158 6,382
Switzerland 3,104 4,538 4,276 4,908
Norway 4,554 5,064 15,043 17,366
Other EMEA 6,839 6,283 - -
---------------- ------------ ------------ ------------ ------------
EMEA 17,773 20,241 26,477 28,656
---------------- ------------ ------------ ------------ ------------
USA 2,198 2,780 15 8,190
Other Americas 689 699 - -
---------------- ------------ ------------ ------------ ------------
Americas 2,887 3,479 15 8,190
---------------- ------------ ------------ ------------ ------------
Asia Pacific 2,266 1,653 86 131
---------------- ------------ ------------ ------------ ------------
22,926 25,373 26,578 36,977
---------------- ------------ ------------ ------------ ------------
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. Non-current assets are allocated based on their physical location.
3.4 Information about major customers
There were no customers in 2017 or 2016 who contributed 10% or more of the Group's revenue.
4 Exceptional items
2017 2016
GBP'000 GBP'000
---------------------------- --------- ---------
Acquisition costs in
relation to energycredit - 253
Functional transformation
costs 1,818 626
Contract disputes 623 -
Professional fees relating
to overseas tax enquiry - 280
------------------------------- --------- ---------
Exceptional items charged
to operating profit 2,441 1,159
Tax charge relating
to overseas tax enquiry - 969
------------------------------- --------- ---------
Total exceptional items 2,441 2,128
------------------------------- --------- ---------
Functional transformation costs
During 2017, the Group incurred functional transformation costs totalling GBP1,818,000 comprising redundancy costs of GBP502,000, recruitment costs of GBP399,000, consultancy and temporary staff costs of GBP667,000 to align the organisational structure with the future strategy of the Group and a legal provision of GBP250,000.
GBP1,336,000 of these costs were paid during 2017 with the remaining GBP482,000 accrued at 31 December 2017 and due to be paid in 2018.
Contract dispute
During 2017, the Group made a full provision of GBP523,000 against a trade receivables balance and a GBP100,000 legal provision relating to certain client contract disputes.
5 Income tax
2017 2016
GBP'000 GBP'000
------------------------------------- --------- ---------
Current tax
UK Corporation Tax at - -
19.25% (2016: 20%) on
loss for the year
Adjustments in respect 24 -
of prior years
Research and development
tax credits - prior years - (266)
-------------------------------------- --------- ---------
UK Corporation tax expense/(credit) 24 (266)
-------------------------------------- --------- ---------
Overseas corporation taxes 322 787
Overseas taxes underprovided
relating to prior years
- other - 136
Overseas taxes underprovided
relating to prior years
- tax enquiry - 437
-------------------------------------- --------- ---------
Overseas tax charge 322 1,360
-------------------------------------- --------- ---------
Total current tax expense 346 1,094
---------------------------------------- --------- ---------
Deferred tax
Origination and reversal
of temporary differences
- current year (448) (469)
Deferred tax adjustment
relating to prior years
- tax enquiry - 532
---------------------------------------- --------- ---------
Total deferred tax (credit)/expense (448) 63
---------------------------------------- --------- ---------
Total income tax (credit)/expense (102) 1,157
---------------------------------------- --------- ---------
6 Discontinued operations
6.1 Description
In autumn 2017, the Board decided to exit the Recycling market in the USA and initiated an active program to locate a buyer for 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 results for 2017 are reported in the 2017 financial statements as a discontinued operation in accordance with IFRS 5. Financial information relating to the discontinued operation is set out below:
6.2 Financial performance and cash flow information
The financial performance and cash flow information presented are for the years ended 31 December 2016 and 2017.
2017 2016
GBP'000 GBP'000
--------------------------------------- --------- ---------
Revenue 4,220 4,896
Cost of revenue (1,960) (2,061)
---------------------------------------- --------- ---------
Gross profit 2,260 2,835
Operating expenses (2,198) (1,884)
---------------------------------------- --------- ---------
Operating profit before adjustments
to write down carrying value
of net assets 62 951
---------------------------------------- --------- ---------
Analysed as:
Gross profit 2,260 2,835
Operating expenses (1,877) (1,581)
---------------------------------------- --------- ---------
Adjusted EBITDA before adjustments
to write down carrying value
of net assets 383 1,254
Depreciation (48) (58)
Amortisation of acquired intangible
assets (84) (100)
Amortisation of other intangible
assets (189) (145)
---------------------------------------- --------- ---------
Operating profit before adjustments
to write down carrying value
of net assets 62 951
---------------------------------------- --------- ---------
Adjustments to write down net (1,906) -
assets to carrying value at disposal
Operating (loss)/profit after
adjustments to write down carrying
value of net assets (1,844) 951
Net finance income/(expense) - -
--------------------------------------- --------- ---------
(Loss)/profit before tax (1,844) 951
---------------------------------------- --------- ---------
Tax expense (190) (73)
Adjustment to deferred tax 112 -
--------------------------------------- --------- ---------
(Loss)/profit from discontinued
operation (1,922) 878
---------------------------------------- --------- ---------
Exchange differences on translation
of discontinued operations 25 182
---------------------------------------- --------- ---------
Other comprehensive income from
discontinued operations 25 182
---------------------------------------- --------- ---------
6.2 Financial performance and cash flow information (continued)
2017 2016
GBP'000 GBP'000
------------------------------------- --------- ---------
Net cash (outflow) / inflow from
operating activities (207) 684
Net cash outflow from investing
activities (258) (188)
Net cash flow from financing - -
activities
Exchange differences on cash
and cash equivalents (48) 92
-------------------------------------- --------- ---------
Net (decrease) / increase in
cash generated by the subsidiaries (513) 588
-------------------------------------- --------- ---------
6.3 Assets and liabilities of the disposal group classified as held for sale
The following assets and liabilities were reclassified as held for sale in relation to the discontinued operation as at 31 December 2017:
2017
GBP'000
------------------------------------------ ---------
Assets classified as held for sale
Intangible assets 4,638
Property, plant and equipment 85
Trade and other receivables 860
Cash and cash equivalents 265
Total assets of the disposal group held
for sale 5,848
------------------------------------------ ---------
Liabilities directly associated with
the assets classified as held for sale
Trade and other payables (1,384)
Total liabilities of disposal group held
for sale (1,384)
------------------------------------------ ---------
7 Earnings per share (EPS)
7.1 Basic and diluted EPS
Basic and diluted earnings
per share 2017 2016
------------------------------------- -------- --------
Earnings
Earnings for the purposes
of basic and diluted EPS being
net loss attributable to equity
holders of the Parent Company
(GBP'000) (8,247) (1,853)
--------------------------------------- -------- --------
Number of shares
Weighted average number of ordinary
shares for the purposes of basic
EPS ('000) 83,330 83,030
Effect of dilutive potential
ordinary shares:
* Share options ('000) - 50
---------------------------------------- -------- --------
Weighted average number of ordinary
shares for the purposes of diluted
EPS ('000) 83,330 83,080
330
---------------------------------------- -------- -------- Basic EPS (pence) (9.90p) (2.23p) ---------------------------------------- -------- -------- Diluted EPS (pence) (9.90p) (2.23p) ---------------------------------------- -------- --------
Basic earnings per share is calculated by dividing profit for the period attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. For diluted earnings per share, the weighted average number of shares is adjusted to allow for the effects of all dilutive share options outstanding at the end of the year. Options have no dilutive effect in loss-making years, and hence the diluted loss per share for the year is the same as the basic loss per share.
7.2 Adjusted diluted EPS
Adjusted diluted earnings
per share 2017 2016
---------------------------------- -------- --------
Earnings for the purposes
of diluted EPS being net loss
attributable to equity holders
of the parent company (GBP'000) (8,247) (1,853)
Adjustments:
Reversal of amortisation on
acquired intangible assets
(GBP'000) 1,643 1,718
Reversal of share-based payments
charge (GBP'000) 11 90
Reversal of exceptional items
(GBP'000) 2,441 1,159
Reversal of actual tax charge
(GBP'000) (24) 1,230
Add Normalised tax at 15%
(2016: 15%) - (352)
----------------------------------- -------- --------
Net adjustments (GBP'000) 4,071 3,845
----------------------------------- -------- --------
Adjusted earnings (GBP'000) (4,176) 1,992
----------------------------------- -------- --------
Adjusted diluted EPS (pence) (5.01p) 2.40p
----------------------------------- -------- --------
8 Cash and cash equivalents
2017 2016
GBP'000 GBP'000
---------------------------------- --------- ---------
Cash at bank and in
hand for continuing
operations 4,089 6,565
Cash at bank and in
hand for discontinued
operations 265 778
------------------------------------- --------- ---------
Cash and cash equivalents
for continuing and discontinued
operations 4,354 7,343
------------------------------------- --------- ---------
9 Share capital and premium
Number
of ordinary
shares Share Share
of GBP0.01 capital premium Total
each GBP'000 GBP'000 GBP'000
-------------------------- ---------------- ------------ ------------ ------------
Balance at 1 January
2016 82,982,887 830 37,053 37,883
-------------------------- ---------------- ------------ ------------ ------------
Issued under share-based
payment plans 100,000 1 46 47
-------------------------- ---------------- ------------ ------------ ------------
Balance at 31 December
2016 83,082,887 831 37,099 37,930
-------------------------- ---------------- ------------ ------------ ------------
Issued under share-based
payment plans 285,000 3 187 190
-------------------------- ---------------- ------------ ------------ ------------
Balance at 31 December
2017 83,367,887 834 37,286 38,120
-------------------------- ---------------- ------------ ------------ ------------
The Company has one class of ordinary shares which carry no right to fixed income. The share capital of Brady plc consists only of fully paid ordinary shares with a nominal value of GBP0.01 per share. All shares are equally eligible to receive dividends and the repayment of capital and represent one vote at shareholders' meetings of Brady plc.
During the year, the Company issued 285,000 shares as a result of share options exercised with a weighted average exercise price of GBP0.67 per share for total cash consideration of GBP190,000.
10 Treasury shares
Treasury shares comprise own shares in Brady plc purchased and retained by the Company:
Number
of ordinary
shares Treasury
of GBP0.01 shares
each GBP'000
------------------------ ---------------- ------------
Balance at 1 January
2016 4,306 3
Balance at 31 December
2016 4,306 3
-------------------------- ---------------- ------------
Balance at 31 December
2017 4,306 3
-------------------------- ---------------- ------------
11 Other reserves
The following table shows a breakdown of the balance sheet line item 'other reserves' and the movements in these reserves during the year. A description of the nature and purpose of each reserve is provided below the table.
Merger Share-based Foreign
Merger relief payment Capital exchange Other
reserve reserve reserve reserve reserve reserves
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- --------- --------- ------------ --------- ---------- ----------
Balance at 1 January
2016 680 530 832 4 (9,343) (7,297)
Exchange differences
on retranslation of
foreign operations - - - - 5,566 5,566
----------------------------- --------- --------- ------------ --------- ---------- ----------
Total comprehensive
income for the year - - - - 5,566 5,566
Reserve credit for
equity-settled share-based
payments - - 90 - - 90
Transfer for exercised
& forfeited share options - - (247) - - (247)
----------------------------- --------- --------- ------------ --------- ---------- ----------
Transactions with owners - - (157) - - (157)
----------------------------- --------- --------- ------------ --------- ---------- ----------
Balance at 31 December
2016 680 530 675 4 (3,777) (1,888)
----------------------------- --------- --------- ------------ --------- ---------- ----------
Exchange differences
on retranslation of
foreign operations - - - - (1,419) (1,419)
Exchange differences
relating to discontinued
operations - - - - (57) (57)
----------------------------- --------- --------- ------------ --------- ---------- ----------
Total comprehensive
loss for the year - - - - (1,476) (1,476)
Reserve credit for
equity-settled share-based
payments - - 11 - - 11
Transfer for exercised
& forfeited share options - - (361) - - (361)
----------------------------- --------- --------- ------------ --------- ---------- ----------
Transactions with owners - - (350) - - (350)
----------------------------- --------- --------- ------------ --------- ---------- ----------
Balance at 31 December
2017 680 530 325 4 (5,253) (3,714)
----------------------------- --------- --------- ------------ --------- ---------- ----------
12 Post balance sheet events
The disposal of the Recycling business is a significant adjusting event that occurred in January 2018 and is disclosed in note 6. No other adjusting events have occurred between 31 December reporting date and the date of authorisation.
13 Statement by directors
While the information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards ('IFRSs') as adopted by the European Union and as issued by the International Accounting Standards Board, this announcement does not itself contain sufficient information to comply with IFRSs. The accounting policies adopted in this preliminary announcement are consistent with the Annual Report for the year ended 31 December 2017.
The financial information set out above, which was approved by the Board on 12 March 2018, is derived from the full unaudited Group accounts for the year ended 31 December 2017 and does not constitute the statutory accounts within the meaning of section 434 of the Companies Act 2006.
The Board of Brady plc approved the release of this preliminary announcement on 12 March 2018.
The Annual Report for the year ended 31 December 2017 will be posted to shareholders in due course and will be delivered to the Registrar of Companies following the Annual General Meeting of the Company. The report will also be available on the investor relations page of the Group's website. Further copies will be available on request and free of charge from the Company Secretary.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGUUPWUPRPPP
(END) Dow Jones Newswires
March 13, 2018 03:01 ET (07:01 GMT)
1 Year Brady Chart |
1 Month Brady Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
