10th Sep 2018 10:16
LONDON (Alliance News) - Brady PLC said Monday its half-year loss narrowed as costs fell sharply despite revenue dipping as it continues to win contracts amidst the reorganisation of the software firm.
For the six months ended June, pretax loss narrowed to GBP2.3 million from GBP3.7 million the year prior. This was despite revenue falling to GBP10.5 million from GBP10.7 million the year before.
Profit performance at the firm - which provides energy, commodity and recycling software - was helped by a substantial fall in operating costs to GBP8.1 million from GBP9.3 million the year prior.
"Forward momentum has been our watch word as we have successfully continued the re-organisation of the business," Brady Executive Chairman Ian Jenks said. "We are doing exactly what we said we would, including an investment in new products, the removal of costs, creating long-term solutions with the customer at the centre and a continual transition away from the group's legacy contract model."
"This has put us on a strong footing reflected in the fact that we have also secured new contract wins and retained all business that came up for renewal during the period," Jenks added.
During the period, Brady won two new contracts with a GBP500,000 booking value. The firm also renewed four contracts which brings its total bookings value to GBP2.8 million.
"As such, we are confident that the business will scale efficiently and deliver significant improvements in profitability and cash generation in the remainder of 2018 and beyond," Jenks continued. "With 95% visibility of our 2018 revenues and a cost base that is now aligned with our strategic goals, we expect our full year results to be in line with market expectations."
Shares in Brady were untraded at 66.12 pence on Monday.
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