Brady confident of hitting full-year expectations

10th Sep 2018 11:08

(Sharecast News) - Trading, risk management and settlement solutions provider Brady issued its unaudited interim results for the six months to 30 June on Monday, reporting a slight decrease in revenue to £10.54m from £10.66m in the same period last year.The AIM-traded firm said of that, recurring revenue was £7.8m, falling from £7.91m.Its EBITDA loss before and after exceptional items was improved on both fronts, at £0.42m.In the first half of last year, its EBITDA loss after exceptional items was £1.85m, and its EBITS loss before exceptionals was £1.24m.The company's operating result after exceptional items was £2.26m for the six-month period, narrowing from £3.72m last year, and its loss for the period from continuing operations was £2.04m, compared to £3.52m.Adjusted diluted losses per share totalled 2.31p, down from 2.77p a year ago, while basic losses per share were 2.77p for this period, significantly less than the 4.25p the firm reported at last year's interim.Cash and cash equivalents stood at £4.76m, down from £5.04m a year ago.On the operational front, Brady highlighted the successful renewal of four contracts in the period, bringing its total bookings value for the period to £2.8m.Two new contracts were also won in the six month period, at a £0.5m booking value.Looking ahead, Brady said it had 95% visibility of its 2018 revenues, with recurring revenue expected to return to its medium term target of 70% by year end.It also reported improvements in profitability and cash generation as being expected through the remainder of 2018 and beyond.The company's full-year 2018 results were expected to be in line with market expectations."Forward momentum has been our watchword as we have successfully continued the re-organisation of the business," said executive chairman Ian Jenks."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."Jenks said that had put the company on a "strong footing", reflected in the fact that it 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."