30th Nov 2015 17:54
LONDON (Alliance News) - Brady PLC said Monday that that its revenue and earnings before interest, tax, depreciation and amortisation for 2015 will be "materially below market expectations" as some sales opportunities took longer than expected to be converted, and market conditions deteriorated.
Brady provides technology and services to companies in the energy, commodity trading and risk management industry. The company said that over the last month or so market conditions for its clients have "materially deteriorated", with several major commodity trading companies reporting deteriorating conditions, issuing profit warnings and announcing cost cutting and restructuring.
As a result customers and new prospects are lengthening buying cycles, Brady said. Whilst it has been able to convert some of its pipeline into contract wins, it said it had seen a prolonging of the time it requires to convert its pipeline into sales.
The company said that it has begun a cost reduction exercise of GBP1.7 million to improve its profitability in 2016.
Shares in Brady closed down 1.9% at 77.00 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
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