Brady declines on 2013 earnings outlook

23rd Jan 2014 11:54

Commodity, energy and recycling software provider Brady slumped on Thursday morning after warning 2013 earnings would fall below the previous year's level. The group said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) would total £3.6m, down from £5.64m in 2012. "This reflects the timing of revenue recognition for the recently signed contracts and the unfavourable currency movement of the Norwegian Krone in the last two months of the year," the group explained. Revenue for the 12 months was set to hit £29.3m, up from £28.14m a year earlier. Cash at the year-end was expected to total £6.7m, up from £5.74m at the end of June 2013. Brady said recurring revenue had increased to 57% of sales, with deferred revenue at the year-end standing at £6.8m (2012: £3.7m), which would provide "a strong platform for growth in 2014". Chief Executive Gavin Lavelle, added: "While disappointed with the impact of timing and currency impact, I am delighted to be able to report a record sales booking year as well as compelling growth in the Americas. As Brady has grown in scale, we are increasingly able to secure significant global deals, with some of the very best names in the commodities trading space. "The momentum built in 2013 has ensured we have a very substantial level of new licence contracted revenue, which drives additional service and development revenues, combined with a reduced cost base gives us every confidence going into 2014." NR