Brady revenue powers ahead

Commodity software solutions provider Brady reported a 37 per cent increase in half year revenue as it signed up eight new licence deals in what remains challenging economic conditions.

The company, which provides trading, risk management and settlement solutions to the energy, metals and commodities sectors, said sales revenue climbed to £12.11m from £8.8m the same time a year earlier.

EBITDA before exceptional items surged 43% to £1.78m while operating profit before exceptional items rose 37% to £0.75m.

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The group said a record eight new licence contracts were signed in the first half and ten in the year to date, up from six new licence contracts signed in the first half of 2011 and 14 in the full year. The average licence deal value was more than double in the first half of this year compared to the same half last year.

Commenting on today's results, Chairman Paul Fullagar said: "The group has continued to deliver positive momentum, demonstrated by the signing of a record of eight new significant licence deals in what remain challenging economic conditions."

He added: "We continue to retain a very strong balance sheet position, with no debt. To complement anticipated organic growth, the Group is committed to seek further opportunities to enhance its product and customer base through selective acquisitions."

Looking ahead Brady said it believes that the fundamental market drivers for its business remain strong.

"Our customers continue to face increasing regulatory and accounting compliance requirements and a dramatic increase in electronic trading which require technology innovation. Our broad offering for the energy, metals and soft commodities markets is well positioned to address the needs of our diversified customer base."

It added that whilst the macro outlook for banking continues to remain uncertain, banks now only represent approximately 10% of group revenues and is therefore not anticipated to have a material impact.

Brady note that while the market as a whole is still a tough environment it has maintained good momentum in securing new business in the first half year which it hopes to continue in the second half year.

CJ