Brady (BRY)

Business description

Brady provides a range of transaction and risk management software applications, which help producers, consumers, financial institutions and trading companies manage their commodity transactions in a single, integrated solution.

Stock data

Market cap.£49.6m
Last close59.50p
High / Low (52 weeks)78.0p / 55.8p
Stock market listingLN
Forecast net cash (£m)5.8
Forecast gearing ratio (%)N/A
TeamTechnology
SectorTechnology

Price performance

%1m3m12m
Actual2.2(4.4)(20.1)
Relative *(4.1)(0.6)(23.4)

* % Relative to local index

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Company news

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 25.4 1.9 1.3 2.4 24.8 18.0
2017A 22.9 (2.1) (2.4) (5.0) N/A N/A
2018E 23.7 1.2 0.9 0.9 66.1 18.2
2019E 24.9 1.8 1.5 1.4 42.5 12.9

Last updated on 28/03/2018

Investment summary

The key FY17 numbers were in line with the January update. Brady has completed the reorganisation that followed the 2016 business review. The focus now is on the re-architecture of its products, and the cash boost from the Recycling disposal will help to that effect. The group spent 33% of sales on R&D in FY17, largely to catch up on client obligations. We have maintained our FY18 revenues, while profits come back slightly as continued high investment is anticipated as Brady expands its portfolio of microservices. While we only forecast modest profitability in FY18, the shift to microservices and cloud delivery will enable much improved scalability of the business model. Meanwhile, the shares are underpinned by the c 70% recurring revenues and the very high-quality customer base.

Last updated on 06/04/2018

Industry outlook

Brady provides trading, risk and connectivity software solutions to the global commodity and energy markets – mining and oil companies, fabricators, traders, banks etc. The global E/CTRM market was worth c $1.65bn in 2016 (Comtech) and is forecast to grow at c 6% CAGR 2016-20. Brady has a strong position in niche areas including commodity logistics, credit risk, metals (number one globally) and European energy, yet has a relatively modest market penetration overall (we estimate 1.5%).

Last updated on 06/04/2018

Key management

Martin Thorneycroft, CFO
Alison Ellman, Head of Global Marketing
Ian Jenks, Executive Chairman
Elizabeth Sipiere, COO

Company address

Riverside House
2a Southwark Bridge Road
London
SE1 9HA
United Kingdom
+44 (0)1223 479479
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