23rd Jan 2014 11:36
LONDON (Alliance News) - Shares in Brady PLC took a tumble Thursday morning, after the trading and risk management software provider said it expects to report an increase in revenue for the financial year just ended, but a drop in earnings compared with the previous year, due to delayed contracts and currencies going against it.
The group said that the year ended strongly, securing five new contracts in the last six weeks of the year worth in total around GBP3 million. This took the total number of substantial new licence contracts signed during the year to 13, Brady said, and it expects revenue for the contracts to come through in the current financial year.
For 2013, Brady said it expects to report revenues of GBP29.3 million, marginally higher than the GBP28.1 million in revenues it reported in 2012.
However, it said it is expecting adjusted earnings, before interest, taxes, depreciation, amortisation and exceptional items, to be around GBP3.6 million, significantly lower than the GBP5.6 million figure it reported in the financial year ended December 2012.
It said the drop in earnings was down to the timing of revenue recognition for the recently signed contracts and the unfavourable currency movement of the Norwegian krone in the last two months of the year.
Brady said it saw strong interest in its Brady Cloud solution, resulting in growth of 15% in cloud revenues.
Brady gave a more confident outlook for 2014, given the number of new contracts recently signed, and the support of its reduced cost base.
"While disappointed with the impact of timing and currency impact, I am delighted to be able to report a record sales booking year as well as compelling growth in the Americas," said Chief Executive Officer Gavin Lavelle in a statement.
Brady shares were trading 6.9% or 5.25 pence lower Thursday morning at 71.25 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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