Brady plc – Preliminary Results

Brady plc (BRY.L), a global provider of trading, risk management and settlement solutions to the energy and commodities sectors, is pleased to announce its unaudited preliminary results for the year ended 31 December 2018.   

Financial Highlights 

• Adjusted EBITDA* £2.6 million (2017: £0.3 million loss)
• Revenues up 4% to £23.2 million (2017: £22.2 million)
• Gross profit up by 15% to £13.9 million
• Cash costs reduced by £1.1 million
• Net cash inflow from operations £0.9 million (2017: £0.1 million outflow)
• Net cash at 31 December 2018 £4.6 million (2017: 4.1 million)

Operational Highlights

• Focus on existing customer engagement and delivery on key milestones
• Significant product progress: CTRM fast start, tolling module, Elhub project live, I-SEM delivered
• Carmen Carey appointed CEO with effect from 18 February 2019
• Improved staff engagement through a series of internal initiatives
• Completion of Recycling business disposal, receiving net cash proceeds in year of £2.9 million

Financial Summary

	Unaudited 2018 £’000	Unaudited restated 2017* £’000
Revenues – continuing	23,157	22,215
EBITDA before exceptional costs 1	2,628	(307)
Operating loss after exceptional costs 2	(1,102)	(6,950)
Operating loss before exceptional costs 2	(828)	(4,509)
Loss after tax and exceptional costs – continuing	(1,808)	(6,845)
Basic loss per share (in pence)	(2.49)	(10.52)
Adjusted earnings/(loss) per share (in pence) 3	0.01	(5.67)
Cash	4,627	4,089

 *restated for changes in accounting policies (see note 12)

¹ EBITDA before exceptional costs comprises operating loss before share based payments, depreciation, amortisation and exceptional costs
² The majority of exceptional items incurred in 2018 relates to professional fees incurred pertaining to the appeal against the Norwegian tax assessment. In the prior year, exceptional costs primarily related to the functional transformation of the Group
³ Adjusted earnings per share is based on earnings excluding exceptional items, acquired intangible asset amortisation charges and share based payment charges and at a consistent normalised tax rate assumed to be 15%

Outlook

We have an outstanding team led by our recently appointed CEO, an impressive portfolio of customers world-wide and our products continue to be recognised as market-leading. Our committed revenues for the year to December 2019 are approximately £18 million with cash on the balance sheet of £4.6 million at 31 December 2018. Implementation of the plan set out in the last two annual reports remains on track as we leverage the foundations we have established to deliver high quality customer relationships and growth in line with commitments made to our employees, customers and shareholders. Going into 2019, we look to the future with confidence.

Carmen Carey, CEO, said,

“I am delighted to join Brady as CEO and look forward to leading the team as we look ahead to 2019 and beyond.  We have exceptional people and world-class customers, providing us with a strong foundation for high quality customer relationships, growth and innovation”.