News blog
Brady
- BY: Andrew Hore |
- POSTED: 14/03/2010 |
Risk management software provider Brady has grown organically and through the purchase of fellow software business Comsoft.
The core markets for the group’s software are the metals and commodities sectors. Roughly one-half of the revenues are in Europe with the rest split between the Americas and Asia. The latter should prove to be a source of growth over the next few years. There was little in the way of revenues from Asia three years ago.
In 2009, revenues rose by one-third to £8.19m and underlying profits improved from £1.04m to £1.18m. Organic growth in revenues was 17%. Recurring revenues account for more than one-third of the group revenues.
The £1.5m Comsoft purchase is doing better than expected and has won new business from Xstrata. Comsoft is still being integrated into Brady.
Brady intends to add further software modules to help it to grow. The company is also improving its marketing.
Edison forecasts a 2010 profit of £1.6m. The shares are trading on just over 16 times prospective 2010 earnings.
Net cash was £5.87m at the end of 2009, rising to £6.1m at the end of February 2010 - equivalent to 22p a share. The dividend has increased from 1.2p to 1.3p a share.
At 66p a share, Brady is valued at £18.7m.
Founder Robert Brady still owns one-third of the company but he has stepped down as chief technology officer and is now a non-executive director.
Brady intends to look for more acquisitions and expects to do one deal a year. These might expand the business geographically or add software.
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