Brady plc, the leading global provider of trading, risk management and settlement solutions to the energy and commodities sectors, is pleased to announce its unaudited interim results for the six months to 30 June 2018.
Financial Summary:
(Unaudited) | (Unaudited, restated) | (Unaudited, restated) | ||
6 months to 30 June 2018 | 6 months to 30 June 2017 1 | 12 months to 31 Dec 2017 1 | ||
£’000 | £’000 | £’000 | ||
Revenue | 10,542 | 10,664 | 22,275 | |
Recurring revenue | 7,800 | 7,910 | 15,694 | |
EBITDA after exceptional items | (424) | (1,851) | (2,697) | |
EBITDA before exceptional items | (424) | (1,244) | (256) | |
Operating result after exceptional items | (2,263) | (3,716) | (6,890) | |
Operating result before exceptional items | (2,263) | (3,109) | (4,449) | |
Loss for the period from continuing operations | (2,037) | (3,522) | (6,810) | |
Adjusted diluted loss per share (pence) 2 | (2.31) | (2.77) | (5.59) | |
Basic loss per share (pence) | (2.77) | (4.25) | (10.48) | |
Cash and cash equivalents on continuing operations | 4,760 | 5,038 | 4,089 | |
1 The Group’s 2017 full and half year financial results have been restated following the implementation of IFRS 15 “Revenue from Contracts with Customers” (“IFRS 15”), effective from 1 January 2018. The half year 2017 results have also been restated for discontinued operations, following the disposal of the Group’s recycling business in January 2018. A restatement of the full year and half year 2017 financial results can be found in note 14.
2 Adjusted loss per share, as calculated by external analysts, are based on the loss after tax adjusted for acquired intangible assets amortisation, share based compensation, exceptional items and normalised tax.
Operational and Financial Highlights:
- Four contracts successfully renewed in H1 bringing total bookings value for H1 to £2.8m
- Two new contracts won in H1 at a £0.5m booking value
- Gross margin increased to 55% (H1 2017: 52%)
- Recurring revenues at 74% (H1 2017: 74%)
- EBITDA loss of £0.424m (H1 2017 loss: £1.851m)
Outlook:
- 95% visibility of our 2018 revenues
- Recurring revenue expected to return to medium term target of 70% by year end
- Improvements in profitability and cash generation expected in remainder of 2018 and beyond
- FY2018 results expected to be in line with market expectations
Ian Jenks, Executive Chairman, said: “Forward momentum has been our watch word as we have successfully continued the re-organisation of the business. 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.
This has put us on a strong footing reflected in the fact that we have 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.”
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