Brady remains confident despite swinging to interim loss

7th Sep 2015 13:58

(ShareCast News) - Trading and risk management provider Brady swung to an interim loss, on the back of licence delays and currency headwinds.The London-listed group posted a £363,000 loss for the six months to the end of June, compared with a £1.5 pre-tax profit in the corresponding period in 2014, as revenue edged 8.9% lower year-on-year to £14.2m.The group attributed the decline in revenue to a £500,000 loss from negative currency impact and delays to licence sales.Meanwhile, recurring revenue ticked 1.2% lower to £7.8m but now amounts for 55% of the group's total sales, compared with 51% a year earlier.Despite the decline in revenue and the pre-tax loss, Brady said the results were in line with expectations and anticipated a much stronger performance in the second half, with visibility on 80% of its projected full-year revenue.In a separate statement on Monday, the group added it had reached a $2m deal to buy the ScrapRunner from dispatch systems provider Enaptive.Under the deal, Brady will pay $1.8m in cash upon completion of the deal, with a further $100,000 to be paid after 12 months and the remaining balance to be satisfied a year later.The group said the acquisition will broaden its recycling product portfolio and expects it to boost growth in the division."Whilst certain segments of the markets in which we operate are experiencing challenges, the long-term outlook for renewables, recycling, commodities and energy provides very exciting markets, and Brady is increasing market share," said group chairman Paul Fullagar.Brady shares were down 1.26% to 98.00p at 1438 BST on Monday.