4th Aug 2005 13:43
BRADY PLC TRADING UPDATE Brady PLC ( "Brady" or "the Company") , the specialist developer and provider of software solutions and services to the commodities and related markets , provides the following trading statement in advance of its half-year numbers, which will be announced in September 2005. Trading Statement In its AGM statement on 16 May 2005 Brady reported that it expected revenues and profits for 2005 to be in excess of 2004 levels. While revenues from existing clients, development and professional services have grown ahead of this time last year the size and value of licensing sales is behind expectations in the year to-date. The Company has continued to grow its order pipeline and interest remains strong in the current and future product offerings. However, due to the elongation of customer decision processes sales of Trinity have taken longer than expected to close out. Given the current timing in the financial year it is likely that the revenue from any further sales of Trinity agreed in the remainder of 2005 will now fall partly into the 2006 financial year. This is a reflection of the long lead times on Trinity implementation, Brady's revenue recognition policy and acceptance of the installed software by the customer. Accordingly Brady is now expecting sales and profits in 2005 to be below current market expectations. Graham Simister Chairman, commented "The ability to predict the timing of large contract closures has always been difficult to gauge. Trinity is an important software application for our customers and it is understandable that new customers have to carefully evaluate the software before deciding to place an order. Unfortunately this leads to unpredictable sales with long lead times. There is now likely to be a shortfall against our previous expectations for sales and profits in 2005 . We remain positive about the prospects for Brady and pleased with the current level of interest in our products and services and the continuing confidence shown in us by our key customers." The Company had cash balances at the end of June of ‚£4.3m. Brady will announce half-year results in September and provide a more detailed update at that time. For more information contact Robert Brady Managing Director Tel: 01223 479 479 Richard Kellett-Clarke Finance Director Tel:01223 479 479 ENDBRADY PLCRelated Shares:
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