17th Mar 2014 13:44
LONDON (Alliance News) - Brady PLC Monday reported increases in 2013 pretax profit and revenue but reported disappointing figures as a result of delayed revenue recognition.
Pretax profit was GBP928,000 in 2013, compared with GBP804,000 in 2012, as revenue grew by 4% to GBP29.4 million and selling and administrative expenses remained broadly flat at GBP17.3 million.
The trading and risk management software provider had previously cautioned that earnings before tax, interest, depreciation and amortisation before exceptional items, would be lower than those in 2012 because revenue associated with the five new contracts signed in the last six weeks of 2013 is to be recognised in 2014.
EBITDA before exceptional costs fell to GBP3.5 million from GBP5.6 million.
"The group signed substantial business in the second half, including two record global deals. Due to the size and scope of these deals, they took longer to negotiate, and have had negligible impact on 2013 revenues. Whilst we did not meet our expectations for the year, there is strong underlying momentum in the business, strong recurring revenues, record licence backlog going into 2014 and beyond," Paul Fullagar, Chairman, said in a statement.
"Although the 2013 results are not as strong as we would have wished the Board is confident that the strong momentum in the business, demonstrated by large contract wins in the last quarter, and the impact of the restructuring of costs achieved in 2013 should result in significantly higher profitability in 2014 and beyond," Fullagar added.
Chief Executive Gavin Lavelle said trading in 2014 remains in-line with market expectations, adding that he is confident of higher margin and profitability in 2014.
Brady increased its full-year dividend to 1.7 pence from 1.6 pence.
Brady shares were Monday quoted at 67.10 pence, down 2.8%.
By Samuel Agini; [email protected]; @samuelagini
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