7th Sep 2015 08:14
LONDON (Alliance News) - Brady PLC on Monday said it swung to a loss in the first half of 2015 due to a currency hit and delays to licence sales, but said it was trading in line with market expectations and sees a better result for the second half.
The company, which provides trading and risk management services for metals, recycling energy and soft commodities, said its pretax loss for the six months to the end of June was GBP363,000, compared to a GBP1.5 million pretax profit a year earlier. That was driven by its revenue declining to GBP14.2 million from GBP15.6 million, hit by a GBP500,000 negative currency impact and delays to licence sales.
Still, the company said it performance was in line with market expectations for the full year and said it anticipates its second half financial outcome will be improved, with visibility on 80% of its projected full-year revenue.
Recurring revenue in the half was slightly lower, down to GBP7.8 million from GBP7.9 million, but now represents 55% of its total sales, up from 51% a year earlier.
Separately, the company said it has struck a USD2.0 million deal to buy the assets and goodwill of the ScrapRunner product from Enaptive, a US-based dispatch systems provider for the scrap metal and recycling industries.
It will pay USD1.8 million in cash on completion of the deal, with a further USD100,000 to be paid after one year and another USD100,000 to come after two years.
It said ScrapRunner will broaden its recycling product portfolio and should drive further growth for this part of the business.
"Whilst certain segments of the markets in which we operate are experiencing challenges, the long-term outlook for renewables, recycling, commodities and energy provides very exciting markets, and Brady is increasing market share," said Brady Chairman Paul Fullagar.
Brady shares were down 0.8% to 98.50 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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