Brady's revenue rises despite difficult commodity market conditions

12th Sep 2016 13:46

(ShareCast News) - Trading and risk management provider for metals, recycling, energy and soft commodities Brady reported a rise in revenues despite difficult market conditions.For the six months ended 30 June, revenues increased 5% to £14.8m in comparison to the same period last year, and recurring revenues increased to 60% from 55%.Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 72.5% to £2.04m.Executive chairman Ian Jenks, said: "We are very pleased to have achieved the improvement in profitability with growth in overall revenue, EBITDA and cash generation despite the continued difficult market conditions. At the end of 2015 the company initiated a programme which has successfully delivered significant cost reductions. We are now focused on pursuing further opportunities to drive effectiveness and efficiency across the group over the coming period."Net cash increased slightly by 3.2% to £6.4m and during the first half of the year the company generated £1m in net cash. Cash cost reduction of £1.6m.Adjusted earnings per share of 1.05p, up from 0.53p, last year.An exceptional cost of £300,000 was incurred due to the acquisition of Energy Credit in January.The cost saving programme has progressed which resulted in year-on-year reductions of £1.6m in the first half.The AIM-listed company reported 70% of new business cloud was deployed and it signed 10 new deals, but not of comparable size to the 10 signed in 2015 of which two were worth £1m. As a result licence sales declined to £1.5 from £2.9m.The movement in foreign exchange rates between the six month period and last year was marginally positive as revenues benefited by £300,000 and profit before tax by £90,000.The energy business unit's organic revenues were broadly flat but contribution grew to £1.4m from £900,000. The acquisition of Energy Credit provided an addition to its portfolio, providing cross selling opportunities.For the commodities business unit, sales fell to £6m from £6.1m. This is due to a fall in licence revenue of £600,00 partially offset by increases in maintenance and services revenue. Despite the fall in revenues, contribution remained flat at £1.6m.In the recycling business unit, organic revenues declined by £500,000, due to a combination of a £700,000 fall in licence sales also partially offset by an increase in maintenance and services revenue. Organic contribution fell by £200,000.Jenks added: "The company has leading market positions and best in class solutions which form a solid foundation to build upon. We believe our initiatives will fuel an efficient engine to facilitate growth and position the business to take advantage of any market upturn."Shares in Brady were down 2.94% to 66p at 1336 BST.