Brady guides higher on 2011 revenues

Commodity risk management software provider Brady expects to achieve 2011 revenue growth of approximately 70%, ahead of market forecasts.

In like-for-like terms, after adjusting for acquisitions carried out in 2010, the group achieved revenue growth of around 10%, with recurring revenues rising to 52% of the total 2011 turnover, versus 36% the year before.

Brady says that it has continued to invest significantly in its solution offering, routes to market and infrastructure.

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Despite the above investments, management expects to report earnings before interest, taxes, depreciation and amortisation expenses (EBITDA) in line with market expectations, with growth also up around the 70% mark, in line with revenue growth.

Earnings per share (EPS) and profit after tax and before exceptional items are also forecast to be in line with market consensus forecasts.

Also worth noting, the firm has unveiled its intention to continue to progress towards a "licence rental model," commencing in January 2012.

As well, the group says that it remains active, "in seeking further complementary acquisition opportunities." In 2010 it acquired Viz Risk Management AS, which continues to trade ahead of expectations.

Gavin Lavelle, Chief Executive Officer (CEO), commented: "Although trade in 2012 will undoubtedly be challenging and economic conditions volatile, I am delighted with the tremendous momentum that our business has gained, following the successful integration of our most recent acquisition, with record new sales, further strengthening our 150+ customer base.

"As we grow and continue to drive momentum, we are confident of investor support to obtain an increase in scale, resulting in further advancements and a wider product offering for our customers."

As of 11:45am shares of Brady were up by 6.7% to 80p, with demand for the shares boosted by news of a contract win.

Brady said the Man Brothers Group, based in Geneva, has selected the company to handle its trade finance operations.

"The solution provided by Brady will enable us to follow in full detail all trade operations initiated by our clients and handle all required financial transactions and documentary credit operations in a fully integrated way," said Haade Bensalem, Chief Executive Officer of Man Brothers.

Brady's CEO, Gavin Lavelle, said the requirement for banks to keep a closer eye on trade operations had grown enormously in importance since the collapse of Lehman Brothers bank.

"Collateral Management has received much attention from regulators and banks. Brady has developed a solution that meets the individual requirements of both," Lavelle claimed.

AB