Trading Statement

16 January 2012

Brady plc ("Brady" or the "Company")

Trading Statement

Brady plc (BRY.L), the leading global provider of trading, risk management and settlement solutions to the energy, metals and commodities sectors, is pleased to provide an update on trading performance for the full year to 31 December 2011. 

The Group expects to report revenue growth in 2011 of approximately 70%, ahead of market forecasts. On a like-for-like basis, adjusted for acquisitions in 2010, the Group achieved revenue growth of approximately 10%. Of highlight, the Group's recurring revenues increased by approximately 145% and represented approximately 52% of total 2011 revenues compared to 36% for 2010. The Group was pleased to secure 14 substantial new licence contracts in the year, compared to ten in 2010.

The acquisition of Viz Risk Management AS, since renamed Brady Energy, in December 2010 has continued to trade ahead of expectations. The Group remains active in seeking further complementary acquisition opportunities and incurred transaction costs in 2011 relating to potential future acquisitions which will be treated as exceptional items.

The Group has continued to invest significantly in its solution offering, routes to market and infrastructure in order to support the growth that has been achieved and the further growth that is anticipated. Despite continued investment, the Group expects to report EBITDA in line with market expectations, a growth of approximately 70%. The Group expects to report earnings per share and profit after tax and before exceptional items in line with market consensus forecasts.

The Group continues to enjoy a strong financial position with net cash at 31 December increasing to £10.5 million, equivalent to 19 pence per share. The Group has no debt.

As noted in the 2010 Annual Report, the Group sells its metal and physical commodity solutions under traditional term licences and its energy solutions under licence rental arrangements. The Group also recognises that a rental model provides higher quality of earnings with lower licence revenue risk, as well as potentially higher lifetime revenues from individual contracts. In consultation with shareholders, the Board has decided to undertake a phased transition to a licence rental model across the Group, commencing January 2012, for new licence deals.

Gavin Lavelle, CEO, commented: "'Above all, our success can be attributed to the excellent service delivered by our employees as well as inspiring products reflecting market needs in a commodities market that remains exciting. Although trade in 2012 will undoubtedly be challenging and economic conditions volatile, I am delighted with the tremendous momentum that our business has gained, following the successful integration of our most recent acquisition, with record new sales, further strengthening our 150+ customer base." Continuing, he said, "As we grow and continue to drive momentum, we are confident of investor support to obtain an increase in scale, resulting in further advancements and a wider product offering for our customers."

Full details of the Group's financial performance together with an outlook for 2012 will be provided in the preliminary results, which are expected to be announced on 12 March 2012.

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About Brady

Brady plc (BRY.L) is a leading global provider of trading and risk management software to the worldwide commodity and energy markets. Brady combines fully integrated and complete solutions supporting the entire commodity trading operation, from capture of financial and physical trading, through risk management, handling of physical operations, back office financials and treasury settlement, for energy, refined and unrefined metals, softs and agriculturals.

Brady has 25 years' expertise in the commodity markets with over 150 customers worldwide, including some of the largest financial institutions, producers and mining corporations which depend on Brady's software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world's largest miners, refiners and producers, trading companies, tier one banks and a large number of London Metal Exchange (LME) Category 1 and 2 clearing members and many leading European energy generators, traders and consumers. For further information visit: www.bradyplc.com

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