14 August 2017: Brady Notice of Results

Brady plc (“Brady” or the “Company”)

Notice of Results

Brady plc, the leading supplier of trading and risk management solutions for metals, recycling, energy and soft commodities, will announce its Interim Results for the six months ended 30 June 2017 on Thursday, 7 September 2017.

An analyst briefing has been arranged for 9:30am on Thursday, 7 September 2017 at the offices of Redleaf Communications. To register your attendance or for further information, please contact Redleaf Communications on 020 7382 4751 or by emailing brady@redleafpr.com.

For further information please contact:

Brady plc

Ian Jenks, Executive Chairman

Martin Thorneycroft, Chief Financial Officer

Telephone: +44(0)1223 479479

Cenkos Securities plc

Ivonne Cantu / Alex Aylen (Sales)

Telephone: +44 (0)20 7397 8900

Redleaf Communications

Charlie Geller / Sam Modlin

Telephone: +44 (0)20 7382 4730

About Brady

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global 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, to back office financials and treasury settlement for energy, refined, unrefined and scrap metals, soft commodities and agriculturals.

Brady has 30 years’ expertise in the commodity markets with some 400 customers worldwide, who depend on Brady’s software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world’s largest financial institutions, trading companies, miners, refiners and producers, recycling companies, scrap processors, 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

19 July 2016: Brady plc (“Brady” or the “Group”) Trading Statement


Brady, the leading global provider of energy, commodity and recycling software is pleased to provide a trading update for the half year to 30 June 2016.

The Group is pleased to report that trading is in line with management’s expectations. Revenues are 4% ahead of last year (including revenues from the acquisitions). The impact of ongoing cost cutting exercises has resulted in a return to profitability. Net Cash at 30 June 2016 is in excess of £6 million. This is against the background of continuing difficult market conditions in the commodity sectors in which our clients operate.

The impact of the weakening of Sterling following the referendum has been marginally positive in the six months to 30th June as foreign denominated revenues exceed foreign denominated costs.

Nine new contracts were signed in the period, seven of which are Cloud deployed and are distributed across our three business lines. Seven of these deals were signed in the Americas. The ability to offer cloud deployed solutions is becoming a key differentiator from the competition. Our cloud solutions allow customers a cost efficient and quickly deployed alternative to traditional client installed models.

Major market leaders that have gone live during the period include: the world’s largest nickel producer; a major Europe-wide power and gas utility adopting Brady’s Cloud infrastructure; a major European power utility; a world leading industrial group, focussed on gases, technologies and services for industry and healthcare.

Gavin Lavelle, CEO of Brady plc, commented: “Our Cloud strategy is clearly yielding results and is a key differentiator in our market and increasingly our new deployments are cloud based. I am delighted to see the improvement in recurring revenues and profitability. With cash on the balance sheet and no debt, we are uniquely placed in our industry to provide great service to our customers and enjoy their support in the marketplace. I look forward to providing a more detailed commentary in the Interim Report”.

Full details of the Group’s financial performance for the period will be provided in the Interim Results, which are expected to be announced on 5th September 2016.

For further information please contact:

Brady plc

Gavin Lavelle, Chief Executive Officer

Martin Thorneycroft, Finance Director

Telephone: +44(0)1223 479479
Cenkos Securities plc

Ivonne Cantu (Nomad)

Camilla Hume

Telephone: +44 (0)20 7397 8900
Redleaf Communications

Charlie Geller

Telephone: +44 (0)20 7382 4730

Sam Modlin

About Brady

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global 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, unrefined and scrap metals, soft commodities and agriculturals.

Brady has 30 years’ expertise in the commodity markets with some 400 customers worldwide, who depend on Brady’s software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world’s largest financial institutions, trading companies, miners, refiners and producers, recycling companies, scrap processors, 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

Brady plc: Twitter/Facebook/LinkedIn

13 July 2016: Six Pac Recycling selects Brady ScrapRunner for its dispatch and container management operations


London, July 13th, 2016 –Brady plc (BRY.L), a leading global provider of trading, risk management and settlement solutions to the energy, commodities and recycling sectors, announced today that Six Pac Recycling has selected Brady ScrapRunner solution for the management of its recycling facility’s roll-off containers and transport fleet, to significantly reduce day-to-day operational costs.

Founded in 1984 and located in Corona, California, Six Pac Recycling has serviced customers in both the public and private sectors to reduce the primary stream of waste to landfills.

ScrapRunner will benefit Six Pac by providing enhanced productivity to its recycling operations, while optimizing the pick-ups and deliveries of material to and from its customers’ locations. Six Pac will simultaneously be able to streamline the scheduling and dispatching of its drivers and trucks. The system will allow Six Pac to reduce fuel costs and underutilised equipment, as well as dramatically reduce the manual paperwork that was previously required in its dispatch and container servicing operations.

Ben Benson, CEO of Six Pac Recycling commented: “We selected ScrapRunner to help us manage the increase in our industrial account division, resulting from the rapid growth in our business.” He added: “We wanted to be alerted in real-time of issues related to drivers, customers or containers and their loads”.

Gavin Lavelle, CEO of Brady plc said: “We are thrilled to have Six Pac Recycling join our impressive roster of recycling operators using Brady’s dispatch and container control system to reduce operating costs and automate their truck and container dispatching, tracking, and management.” He continued: “For recycling organisations, big and small, having total control of their transportation costs is imperative. User-friendly ScrapRunner, deployed in the Cloud will allow Six Pac to simplify its operations by increasing driver productivity and reducing other operational cost associated to its fleet”.

# # #

Editorial contact for Brady

Rebecca Sanders Hewett/David Ison/Charlie Geller
Redleaf Polhill
Tel: +44 (0) 20 7382 4730
Email: rsh@RedleafPolhill.com,  di@RedleafPolhill.com or  cg@RedleafPolhill.com

Notes to Editors

About Brady plc

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global commodity, recycling 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, scrap and secondary metals, soft commodities and agricultural products.

Brady has 30 years’ expertise in the commodity markets with over 400 customers worldwide, who depend on Brady’s software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world’s largest financial institutions, trading companies, miners, refiners, scrap processors, recyclers and producers, 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

Brady plc:Twitter/Facebook/LinkedIn

About Six Pack Recycling

Six-Pac Recycling has been an integral part of the recycling industry in the Southern Californian region of Inland Empire since 1984. Located in Corona, California, the Company is independently owned and operated, with 50+ years’ of industry knowledge, enabling the team to provide unmatched service and highly competitive pricing. Its goal in recycling is to help customers both public and private reduce the primary stream of waste to landfills.

For further information visit: http://www.sixpacrecycle.com/

7 June 2016: Brady plc appoints Ian Jenks as Non-Executive Chairman


Brady plc, the leading global provider of trading, risk management and settlement solutions to the energy, commodities and recycling sectors, is pleased to announce the appointment of Ian Jenks as Non-Executive Chairman with immediate effect. Ian’s appointment follows the recent announcement that Paul Fullagar has decided to retire from his role as Chairman.

Ian Jenks has significant experience working with software companies, and currently holds a number of senior roles including Chairman of listed company Birdstep Technology ASA and Senior Independent Director of Paysafe PLC. Ian is also a Non-Executive Director of a number private companies including Nexeon Limited, Smartkem Limited, Econic Limited and Seren Phonics Limited. Previously, Ian was a partner in Crescendo Ventures LLP, Chairman of Oplink Communications Inc. and President of JDS Uniphase Inc. Further information on Mr. Jenks, as required by Schedule 2(g) of the AIM Rules for Companies is included in the Appendix below.

Outgoing Chairman Paul Fullagar said,

“I wish to thank all shareholders for their support over the last nine years. During this time the Company has achieved much. In this period revenues have increased six fold. We have strengthened our position as the leading provider of risk management and settlement solutions to companies all around the world. We now have over 400 customers and are able to service them through offices in Europe, the USA and Asia, and support their requirements across commodities, energy and recycling. I am very happy to hand over the role of Chairman to Ian Jenks. He has fantastic experience building technology companies and I’m sure under his tenure Brady will enjoy even further growth.”

Disclosures

Brady plc

Gavin Lavelle, Chief Executive Officer

Martin Thorneycroft, Finance Director

Telephone: +44(0)1223 479479
Cenkos Securities plc

Ivonne Cantu (Nomad)

Oliver Baxendale (Sales)

Telephone: +44 (0)20 7397 8900
Redleaf Communications

Charlie Geller

Telephone: +44 (0)20 7382 4730

Harriet Lynch

 

About Brady

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global 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, unrefined and scrap metals, soft commodities and agriculturals.

Brady has 30 years’ expertise in the commodity markets with some 400 customers worldwide, who depend on Brady’s software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world’s largest financial institutions, trading companies, miners, refiners and producers, recycling companies, scrap processors, 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

Brady plc: Twitter/Facebook/LinkedIn

APPENDIX

Additional information in relation to Ian Tudor Jenks (aged 62)

Mr. Jenks is also a director of

Startkem Limited

Nexeon Limited

Birdstep Technology ASA

Econic Limited

Seren Phonics Limited

In the past five years, Mr. Jenks has been a director of

Transmode AB

Intune Network Limited

Evo Electric Limited

Quantasol Limited

British Photovoltaic Association

21 March 2016: Brady plc announces preliminary results for the year ended December 2015

21 March 2016: Brady plc announces preliminary results for the year ended December 2015
Brady plc (BRY.L), a global provider of trading, risk management and settlement solutions to the energy, recycling and commodities sectors, is pleased to announce its unaudited preliminary results for the year ended 31 December 2015.

Financial Summary

2015

Unaudited

2014
£’000 £’000

Total revenue 27,374 31,015
Recurring revenue 15,249 15,848

EBITDA before exceptional costs1 2,450 6,288
Operating profit after exceptional costs3 (1,428) 1,031
Operating profit before exceptional costs (959) 3,174

Profit (Loss) after Tax after exceptional costs (1,726) 459
Profit (Loss) after Tax before exceptional costs (1,257) 2,852

Dividend proposed (pence per share) 0 1.85
Basic earnings per share (in pence) (2.09) 0.56
Adjusted earnings per share (in pence)2 0.98 5.31

Cash and cash equivalents 6,594 9,580

1EBITDA before exceptional costs comprises operating profit before depreciation, amortisation and exceptional costs

2Adjusted earnings per share is based on earnings excluding exceptional items, acquired intangible asset amortisation charges and share based compensation charges and at a consistent normalised tax rate assumed to be 15%.

3 The majority of the 2015 exceptional item comprises re-structuring costs and the majority of the 2014 exceptional item comprises a non-cash impairment charge against goodwill.

4 Consistent currency numbers are calculated by translating the 2015 result at the same exchange rate as those used in the 2014 results.

Operational Highlights

20 new contracts, including two substantial contracts with market leaders, in line with previous year
Weak market conditions following the collapse in global commodity prices
Cloud revenue growth +60%
Energy division stabilised with constant currency revenue broadly flat and improved contribution to 26% from 22%
Major investment (£1 million) in the new concentrates system functionality attracting major client interest
Acquisition of ScrapRunner to strategically enhance Recycling division
Acquisition of energycredit, in January 2016, to enhance product functionality and establish off-shore development capability
Financial Highlights

Revenue down 12%, or down 7% on constant currency basis
Loss before tax of £1.4m (2014: £1.1m profit)
Costs reduced by £2m from start of 2016 in order to maintain margins and potential for market recovery
Exceptional restructuring and non-recurring costs £0.5m (2014: £2.4m)
Net cash at year end £6.6m (2014: £9.6m) Recurring revenues 56% (2014: 51%)
Chairman’s Statement

Market conditions were weaker than expected in the second half of the year and revenue for the year of £27.4 million was down on last year (2014: £31.0 million). 2015 saw a further 30% decline in commodity prices, following the downgrade of Chinese growth expectations, which impacted customer confidence and led to a deferral of expected contract decisions towards the end of the year.

In constant currency terms, revenues were down £2.3 million, due to lower licence sales. Organic revenues declined by 12% of which 4% was as a result of foreign exchange movements. The mix of revenues improved with recurring revenues up 5% to 56%.

As a consequence the Group achieved an EBITDA before exceptional items lower than originally forecast at £2.5 million compared to £6.3 million for 2014. Loss after tax (before exceptional items) was £1.3 million (2014: £2.9 million profit) and loss after tax (after exceptional items) was £1.7 million (2014: £0.5 million profit). Operating cash flow in the year was £1.9 million and net cash at year end was £6.6 million (2014: £9.6 million).

Towards the year end we initiated further overhead savings of £2 million per annum annualised. The redundancy costs associated with this reorganisation were £0.4 million. Following the reorganisation the Group has aligned resources more efficiently by investing in the business units with higher contracted growth, providing an effective platform for profitable growth in 2016.

The move towards cloud based services continued, with nine deals being cloud deployed compared to six last year. We are on course to having over 50% of new contracts delivered via the cloud. This also has the benefit of increasing our recurring revenue.

The Commodities division signed a global deal with one of the top commodity trading companies for refined and concentrates (ores). The Recycling division signed a substantial contract with the world’s leading recycling company for their AAPAC business, our first recycling deal outside of the Americas. The Board believes that both of these deals underline our leadership in all aspects of metals.

Brady’s strategy remains to provide integrated trading and risk management solutions to commodity, energy and recycling companies. The Energy & Commodity Trading & Risk Management software market is estimated to be a $1.6 billion per annum spend. Brady has demonstrably taken more market share in the last four years as competitors struggle under the weight of highly leveraged balance sheets and tough market conditions.

People

I would like to thank all of our directors and employees for their efforts during a very busy year. In particular, on behalf of the Board, I would like to thank Robert de Picciotto who leaves the Board at the end of April for his significant contribution to the development of the Group over the past five years as an executive and then non-executive director. The commitment, loyalty and hard work of the team continue to be very much appreciated and their teamwork will be crucial in delivering the major new projects in 2016 and beyond.

Clients

The Group appreciates the support from our client base. In the last seven years the number of clients has increased from 50 to more than 400, including many of the leading names in the industry. The geographical spread of the Group’s revenues now comprises £19.8 million in EMEA, £6.2 million in the Americas and £1.4 million in Asia.

Dividend

During this period of market uncertainty the Board believes it is prudent to suspend the normal dividend payment and maintain our strong balance sheet. This decision will be reviewed as the commodity markets recover and we return to our progressive dividend policy.

Looking Ahead

The impact of the restructuring of costs achieved in 2015 together with tight control of ongoing costs should result in significantly higher profitability in 2016 and beyond.

Although the overall market outlook remains uncertain, the Board is confident that Brady will continue to take market share demonstrated by its ability to sign and deliver increasingly large contracts with global leaders and its strong list of referenceable customers who already rely on Brady systems to run their businesses.

Brady operates in a large, global market: everybody on the planet is reliant on commodities and energy; the recycling market is growing strongly; and Brady continues to be well placed for profitable growth.

Paul Fullagar

Chairman

Chief Executive’s Review

In the first half of the year we signed major contracts with leading companies, including one of the top four global commodity companies and the world’s largest recycling company. The third quarter saw the commodity and energy markets respond to expectations of an increased slowdown in demand from China, which continued to underpin the market weakness and further drive commodity prices down. Consequently several contract decisions were deferred.

Despite these deferrals, in the full year, 20 new deals were signed, including nine deployed in the cloud, resulting in a 60% increase in cloud revenues over the previous year. Accordingly we are on target for 2016 as we reinforce the cloud as our default method of delivery and aim for more than 50% of deals to include our Cloud Services.

In 2015 much of our focus was on strengthening the project delivery to maximise the profitability of projects, which resulted in 27 major projects and go-lives, including our first cotton client in the USA, an aluminium company based in Bahrain which went live in eight months following an unsuccessful project attempt by a competitor, which was shelved after five years, a recycling company in Ohio, West Virginia and the largest power producer in Norway went live with our web-based client reporting solution.

Major new strategic investments were made in new technology solutions. In the metals industry we have invested heavily in new concentrates/ores functionality and released the first version to a large customer. 15% growth in Energy Data Management was driven by our product enhancements in anticipation of major changes in the Nordic Balancing and Settlement market; and the recycling market has benefited from enhanced handheld inspection devices which we have started to roll out across our 1000+ recycling sites.

The Company initiated a cost reduction plan at the end of the year and has firmly embedded a programme to de-risk the business model.

Brady Energy

The Energy business continued to demonstrate positive momentum in 2015, securing eight new contracts which includes the addition of four new clients: a Norwegian energy utility which selected Brady to manage its renewable energy trading and risk management operations: a French multinational company which will deploy Brady to manage its power plants’ tolling agreements: and a joint venture by two of the world’s largest international energy companies resulted in Brady being selected to support their combined cycle gas turbine, one of the world’s most flexible and efficient gas-fired power plants.

The division also continued to deliver on its strategy to rationalise its solution set and integrate further to deliver a more comprehensive and cost-effective solution suite.

The division successfully delivered implementation projects resulting in 10 go-lives, including five contracts that were signed earlier in the year and two implementations of the first release of Brady’s integrated pan-European power scheduling and balancing solution.

Commodities

Sales highlights include major contracts signed with one of the world’s largest commodity companies and the brokerage division of a large Japanese multinational, covering base and precious metals and agricultural commodities. Despite the challenging bear markets, Brady Commodities signed four new start-up commodity trading companies which selected cloud-based solutions for cotton, metals and concentrates trading and risk management. This highly diverse selection of new clients highlights our leadership across the metals and agricultural markets.

Major go-lives include a global trading company for cotton. Our hedge manager solution, a packaged, out-of-the box solution for hedging and risk management for fabricators, successfully went live at two sites. Two more existing clients were migrated to our cloud solution.

Product highlights include a major update to our concentrates and ores solution, providing, the Board believes, unrivalled functionality in this market; extension to capabilities for derivatives traders and risk managers, including massive performance improvements, extending out real-time position and P&L screens, stress testing, as well as the addition of a real-time limits module for trading and credit limits. Other areas of focus include premium risk management, regulatory reporting for MIFID, EMIR, FMIA, OTC clearing and streamlining deal flow through, from placed orders through automated confirmation, to settlement.

Recycling

A significant milestone for the Recycling unit was being selected by the world’s largest recycling company, which took the decision, as part of the Group’s larger plan to standardise all its global operations, to implement Brady in all its facilities in Australia, New Zealand, Tasmania and New Guinea. The team additionally successfully implemented its enterprise solution at a ferrous scrap brokerage organisation located throughout the US.

Product launches came to the fore in 2015, with the rollout of three significant mobile applications: the Hand Held Mobile Inspection Management system, the Export Container Image Management system and the Buyer Work Bench, as well as the Automated Mill Weight and Cash Application module. All of these developments bring significant return on investment to recycling companies looking for flexibility and increasing efficiency in their yards, whilst keeping costs firmly under control.

The acquisition of ScrapRunner in September 2015 added the required functionality to Brady Recycling’s suite of solutions to enable scrapyards to optimise their dispatch and container management processes. Work is already underway to integrate the solutions, to drive increased licence revenues.

Technology Initiatives
Brady Web Framework has been further cemented as the core for next generation application and service development for the Group. 2015 saw more consumers and contributors moving to this framework than ever before, as well as the extension of its capabilities for web portal and mobile development. The latter was showcased at our Customer Advisory Board and is already being used for the exciting development of a handheld device. Wider and more extensive use of our Common Framework across the Group and in all divisions is planned for 2016.

Four new services, Assay Exchange, Contract Rules, Limits and REMIT, have been added to increase our SOA inventory to 29 services. In 2016 we are planning more new SOA services, including SPAN Margining and Alert and Notification services.

We significantly strengthened our domain knowledge and widened our overall offering to our clients through the acquisitions of ScrapRunner, a dispatch solution designed for the Recycling market, followed by the acquisition in December of energycredit, an enterprise-wide credit risk solution. Apart from providing Brady with a complementary technical solution, this provides an offshore capability in India which the Board expects will be strategically important to Brady in the coming years.

Market

Looking forward to 2016, the trading conditions for a number of our clients could remain challenging. We are focused on providing value propositions that help our clients reduce their costs, meet the increasing demands of the regulators, consolidate suppliers and displace competition that provides poor customer satisfaction.

Growth Drivers
Significant growth areas include:

Cost efficiency for the recycling market
Cloud deployed, cross commodity solution
An enterprise-wide solution for the Energy market
Looking forward to 2016, the Commodities team will focus on its Base Metal and Raw Material solution, with a new release of concentrates for metal traders, transporters, miners, producers. Brady Cotton is a unique solution able to handle the nuances of US cotton down to the bale level and fully integrates with the most common tools EWR, AMS, eCotton, The Seam.

The energy markets across Europe continue to evolve in a period of fundamental market standardisation across the established geographies. In the Nordic region, 2016 will see the rephased rollout of the Nordic Balance Settlement (“NBS”) system, designed to standardise settlement across the three Nordic countries, and preparation for El Hub in 2017. Additionally, the deregulation of the markets in South Eastern Europe opens up new opportunities for market participants in the supply of additional cross-border capacity.

The inherent complexity of renewable energy sources and the resultant importance of intraday and cross-border trading, coupled with the need to deliver highly cost-effective solutions to a market facing tight market conditions, remain the key focus for the division in 2016.

The Recycling team are focused on cost efficiency employing handheld inspection, logistics optimisation to drive down costs and provide a significantly improved ROI.

Summary and Outlook
We are looking to increase our market leadership in metals and drive more growth in agricultural products.

Our strategy is to be world leaders in Recycling. Having signed our first major deal in the Asia Pacific region, we are now looking at further opportunities to drive international growth.

The Energy business has made very good strides in 2015 and has delivered the most profits across the Group. For 2016 we need to retain our dominance in the Nordics, extend our geographic footprint, and drive larger sales by articulating and demonstrating our strategy to provide an overarching solution.

Our teams that work in cross-group roles are working towards increased efficiency and transparency through consolidation of systems and introducing best practices and common workflows across the Group.

In 2016 we will be working with the team to roll out and embrace our corporate values which will define the way in which we conduct ourselves both internally and externally:

Integrity, People, Innovation, Excellence, Customer Satisfaction and Collaboration

Spending time with the team reinforces to me that we have a world class company, and despite challenging market conditions, we are gaining relative market share.

Gavin Lavelle

CEO

Brady plc

Financial Review
Foreign Exchange Rates

Foreign exchange rates have moved significantly between 2014 and 2015 for several of the currencies in which Brady both generates revenue and incurs costs. The most significant currency pairs are: sterling and the US dollar, sterling and the Norwegian krone and sterling and the Swiss franc. Sterling weakened 7% against the US dollar and 3% against the Swiss franc and strengthened 19% against the Norwegian krone.

Group Trading Performance

In order to enable a better appreciation of the business performance in the underlying currencies Brady has provided details of revenues in both actual and consistent currency. Consistent currency numbers are calculated by translating the 2015 results at the same exchange rate as those used in the 2014 results.

Revenue Mix

The revenue composition is summarised in the tables below:

2015

£ million

%

2014

£ million

%

Licence revenues 5.2 19% 7.5 24%
Recurring revenues 15.3 56% 15.9 51%
Services and development revenues 6.9 25% 7.6 25%
Total revenues 27.4 100% 31.0 100%

At consistent currency:

2015

£ million

%

2014

£ million

%

Licence revenues 5.2 18% 7.5 24%
Recurring revenues 16.2 56% 15.9 51%
Services and development revenues 7.3 26% 7.6 25%
Total revenues 28.7 100% 31.0 100%

Total revenue declined by 11.6% at actual exchange rates and by 7.4% in consistent currency. Organic growth in revenue at actual exchange rates fell 12.3% against 6% growth in 2014. At consistent currency, organic growth declined by 7.4%. The acquisition of ScrapRunner in September 2015 added £0.2 million to recurring revenue in the Recycling business unit.

In 2015 licence revenues decreased 31% to £5.2 million from £7.5 million in 2014.

Total recurring revenue declined by £0.6 million (or -4%). At consistent currency rates, total recurring revenue grew by £0.3 million (or 2%). Organic recurring revenue declined by £0.8 million (or -5%), from £15.9 million (2014) to £15.1 million (2015). At consistent currency rates, organic recurring revenue grew by 1% to £16.0 million from £15.9 million.

Services and development revenues decreased 9% to £6.9 million from £7.6 million. At consistent currency services and development revenue decreased 4% to £7.3 million from £7.6 million.

Trading performance by business unit (before exceptional items)

The revenue and contribution by business unit, prior to any allocation of central and shared costs and amortisation of intangible assets, are summarised below:

Revenues Contribution

2015

£ million

2014

£ million

2015

£ million

2014

£ million

Brady Commodity business unit 12.4 14.4 3.6 5.9
Brady Energy business unit 10.8 12.6 2.8 2.8
Brady Recycling business unit 4.2 4.0 0.1 0.8
27.4 31.0 6.5 9.5
In consistent currency:

Revenues Contribution

2015

£ million

2014

£ million

2015

£ million

2014

£ million

Brady Commodity business unit 12.2 14.4 3.6 5.9
Brady Energy business unit 12.5 12.6 3.3 2.8
Brady Recycling business unit 4.0 4.0 0.1 0.8
28.7 31.0 7.0 9.5
Brady Commodities

Revenue decreased 14% in 2015 to £12.4 million compared to £14.4 million in 2014. In consistent currency the decrease was 15% from 14.4 million (in 2014) to 12.2 million (in 2015). The contribution margin was 29% (2014: 41%).

Brady Energy

Revenues decreased 14% in 2015 to £10.8 million compared to £12.6 million in 2014. However, there was a large currency effect in this and, in consistent currency, revenues decreased by 1% from £12.5 million to £12.6 million.

The business unit contribution margin was 26% (2014: 22%).

Brady Recycling

Total revenue increased 5% in 2015 to £4.2 million compared to £4.0 million in 2014. In consistent currency revenues were flat. Organic revenue was flat year on year at actual currency rates and declined by £0.2 million (5%) in consistent currency. The acquisition of ScrapRunner contributed £0.2 million of revenue at both actual FX rates and consistent currency. The contribution margin was 2% (2014: 20%).

Gross margin

The overall gross margin decreased to 60% from 65%.

Profitability

EBITDA (earnings before interest, tax, depreciation and amortisation) before exceptional items decreased to £2.5 million (2014: £6.3 million).

Operating profit before exceptional items and tax decreased to a loss of £1.0 million (2014: £3.2 million profit). Profit before exceptional items after tax decreased to a loss of £1.3 million (2014: £2.9 million profit).

Research and development expenditure

Total research and development spend amounted to £6.7 million (2014: £7.3 million). Of this, £4.7 million was expensed (2014: £5.5 million) and £2.0 million (2014: £1.8 million) was capitalised. Capitalised development which is referred to internally within Brady as strategic software development (SDD) represents large strategic developments of either significant new modules or functionality. These projects are selected and approved by the Board as part of the business planning and budget process. The largest single capitalised project in 2015 was £1 million in respect of the development of a concentrates module for the Fintrade product. This allows a customer to trade refined and unrefined metals, concentrates, raw materials, softs and agriculturals all on one platform and giving Brady a unique position in the market. SDD for 2016 is expected to be £0.5 million less than in 2015.

Exceptional items

The exceptional item comprises two items:

Corporate finance and legal costs associated with the acquisition of ScrapRunner, totalling £122,000, and
Reorganisation costs incurred in the November and December cost cutting exercise. The reorganisation costs comprise mainly redundancy costs spread across all business units and group functions and total £347,000.
Finance income

Interest income from the Group’s cash resources was £31,000 (2014: £58,000).

Income tax

The overall tax charge for the year was £0.3 million (2014: £0.4 million before exceptionals). Although a proportion of profits is being generated in higher taxed jurisdictions such as the US, Norway and Switzerland, the Group continues to benefit from the attractive research and development tax credit regime in the United Kingdom. The Group also inherited unutilised tax losses following its acquisition of Navita and the Group has benefited from deferred tax credits associated with the amortisation of acquired intangible assets and capitalisation of development costs. The Group retains unused tax losses of approximately £13.0 million which are expected to be available to offset against future taxable profits.

Earnings and dividends

After including the exceptional charges, profit before tax decreased to a loss of £1.4 million (2014: £1.1 million profit) and profit after tax decreased to a loss of £1.7 million (2014: £0.5 million profit).

The weighted average number of shares in issue increased to 82.7 million (2014: 81.3 million). Adjusted earnings per share, as calculated by market analysts, adjusted to exclude share based payments, amortisation of acquired intangible assets, exceptional items and, assuming a consistent normalised tax rate of 15%, decreased to 0.98 pence per share (2014: 5.31 pence per share).

The Board does not propose a dividend for the year.

Share issues

1,637,003 (2014: 549,000) share options held under the Company’s share option schemes were exercised. The exercise proceeds following the exercise of these share options were £719,000 (2014: £338,000).

Treasury shares

The total number of ordinary shares held in treasury during the year remained at 4,306.

Acquisitions

On 4th September 2015 the Group acquired the assets and goodwill of the ScrapRunner product, from Enaptive Inc a USA based company providing dispatch systems designed specifically for the scrap metal and recycling industry markets. The purchase price was $1.8 million (£1.2 million) in cash. The fair value of assets and liabilities acquired comprised: intangible assets £0.8 million, trade and other debtors £0.2 million, trade payables and deferred revenue £0.3 million, deferred tax £0.3 million and goodwill of £0.8 million. Revenues in the period from acquisition to 31 December 2015 were £0.2 million and profit before tax was £0.01 million.

No acquisitions took place during 2014.

Balance sheet

The Group continues to retain a strong balance sheet, with significant cash reserves and no debt.

Non-current assets

Goodwill decreased to £17.2 million from £17.6 million. This is the net movement between the addition of £0.8 million for the ScrapRunner acquisition and foreign exchange movements on retranslation (£1.2 million).

Acquired software decreased to £4.4 million from £5.8 million and acquired client contracts decreased to £2.2 million from £2.4 million as a result of additions from the ScrapRunner acquisition less amortisation during the period and foreign exchange movements on translation.

As required by IAS38 Intangible assets, the Group capitalised £2.0 million (2014: £1.8 million) of expenditure in relation to strategic software development programmes. The Group has a continued commitment of enhancing and expanding its offerings and taking its technology forward. The bulk of expenditure incurred during the year on research and development was, however, expensed as incurred. Net of amortisation to date, the book value of capitalised development costs increased to £6.0 million (2014: £5.2 million).

A deferred tax asset of £0.5 million has been recognised in relation to historic tax losses acquired in Norway. These losses are anticipated to be available for set-off against future trading profits.

Current assets

Trade and other receivables decreased to £5.7 million (2014: £6.2 million) and accrued income increased to £1.4 million (2014: £1.2 million). Accrued income arises principally on consulting and professional services revenue which is typically invoiced in the month following provision of the service. Additionally, accrued income can arise on large contracts based on negotiated invoice terms.

Current liabilities

Trade and other payables increased to £4.6 million (2014: £4.5 million) and deferred income remained at £5.4 million (2014: £5.4 million). Deferred income arises principally as a consequence of payments received in advance of revenue recognition with respect to both rental and licence revenues.

Cash and cash flow

Operating cash generation was £1.9 million (2014: £5.8 million).

The Group had investment outflows of £3.7 million (2014: £2.4 million), the increase being due to the ScrapRunner acquisition.

Financing activities show a net cash outflow during 2015 of £1.0 million (2014: £1.0 million). This was largely made up of the dividend paid during the year of £1.5 million (2014: £1.4 million).

The Group’s cash balance continues to be maintained in excess of its normal working capital requirements. The Board continues to believe that a strong balance sheet, with high cash balances, is an important requirement for the Group’s large global clients and potential clients looking to contract with Brady. It is also anticipated that part of the surplus cash resources may be used to finance smaller, “bolt-on” future acquisition opportunities.

Exchange rates

The principal currencies used within the Group are Pound sterling (Brady Metals and Group), Norwegian Krone (Brady Energy), Swiss Franc (Brady Commodities) and the US Dollar (Brady Recycling). The exchange rates used for 2015 and 2014 are shown below:

Average rates

2015 2014 Movement
NOK 12.425 10.467 -18.71%
CHF 1.472 1.511 2.58%
USD 1.526 1.645 7.23%
Year-end rates

2015 2014 Movement
NOK 12.983 11.577 -12.14%
CHF 1.469 1.537 4.42%
USD 1.483 1.553 4.51%
Consolidated statement of comprehensive income

For the year ended 31 December 2015 Unaudited Unaudited Unaudited

Before exceptional items 2015 Exceptional items 2015 2015 Before exceptional items 2014 Exceptional items 2014 2014
Notes £’000 £’000 £’000 £’000 £’000 £’000
Revenue 4 27,374 – 27,374 31,015 – 31,015
Cost of sales (10,867) – (10,867) (10,977) – (10,977)
Gross profit 16,507 – 16,507 20,038 – 20,038
Selling and administrative expenses (17,466) (469) (17,935) (16,864) (2,143) (19,007)
Operating result (959) (469) (1,428) 3,174 (2,143) 1,031
Finance income 31 – 31 58 – 58
Profit for the year before taxation (928) (469) (1,397) 3,232 (2,143) 1,089
Income tax expense (329) – (329) (380) (250) (630)
Profit for the year attributable to the shareholders of Brady plc (1,257) (469) (1,726) 2,852 (2,393) 459

Other comprehensive income
Items that will subsequently be reclassified to profit and loss:
Exchange differences on translation of foreign operations (2,117) – (2,117) (2,970) – (2,970)
Items that will not subsequently be reclassified to profit and loss:
Movement in actuarial valuation of defined benefit pension scheme (235) – (235) (1,205) – (1,205)

Total comprehensive income for the year (3,609) (469) (4,078) (1,323) (2,393) (3,716)

Earnings per share (pence)
Basic 5 (2.09) 0.56
Diluted (2.07) 0.56
All of the above relate to continuing operations.

Consolidated Statement of Financial Position
31 December 2015

Unaudited
2015 2014
Notes £’000
Assets
Non-current assets
Goodwill 17,178 17,567
Other intangible assets 12,653 13,429
Deferred tax asset 483 542
Property, plant and equipment 1,147 1,076
31,461 32,614
Current assets
Trade and other receivables 5,657 6,209
Accrued income 1,382 1,159
Cash and cash equivalents 6,594 9,580
13,633 16,948

Total assets 45,094 49,562

Equity
Share capital 830 817
Treasury shares (3) (3)
Share premium account 37,053 36,350
Merger reserve 680 680
Merger relief reserve 530 530
Equity reserve 832 890
Foreign exchange reserve (9,343) (7,226)
Capital reserve 4 1
Retained earnings (1,107) 2,327
Total equity 29,476 34,366

Liabilities
Current
Trade and other payables 4,588 4,466
Deferred income 5,394 5,389
Current tax payable 822 690
10,804 10,545
Non-current liabilities
Deferred tax liabilities 2,606 2,789

Pension obligations 2,208 1,862
4,814 4,651

Total liabilities 15,618 15,196

Total equity and liabilities 45,094 49,562

Consolidated Statement of Changes in Equity

31 December 2015

Equity attributable to shareholders of Brady plc:
Share capital

Treasury shares

Share premium account
Merger reserve

Merger relief reserve
Equity reserve

Foreign exchange reserve
Capital reserve

Retained earnings

Total

equity

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 December 2013 811 (3) 36,018 680 1,348 819 (4,256) 1 3,472 38,890
Dividends – – – – – – – – (1,378) (1,378)
Increase in relation to options issued – – – – – 232 – – – 232
Exercise and cancellation of options – – – – – (161) – – 161 –
Transfer of reserves – – – – (818) – – – 818 –
Allotment of shares 6 – 332 – – – – – – 338
Transactions with owners 6 – 332 – (818) 71 – – (399) (808)
Profit for the year – – – – – – – – 459 459
Other comprehensive income:
Movement in actuarial valuation of defined benefit pension plan – – – – – – – – (1,205) (1,205)
Exchange differences on translation of foreign operations – – – – – – (2,970) – – (2,970)
Total comprehensive income for the year – – – – – – (2,970) – (746) (3,716)
Balance at 31 December 2014 817 (3) 36,350 680 530 890 (7,226) 1 2,327 34,366
Dividends (1,524) (1,524)
Increase in relation to options issued 243 243
Exercise and cancellation of options (301) 301 –
Transfer of reserves –
Allotment of shares 16 – 703 719
Purchase of own Shares (3) 3 (250) (250)
Transactions with owners 13 – 703 – – (58) – 3 (1,473) (812)
Profit for the year (1,726) (1,726)
Other comprehensive income: –
Movement in actuarial valuation of defined benefit pension plan (235) (235)
Exchange differences on translation of foreign operations (2,117) (2,117)
Total comprehensive income for the year – – – – – – (2,117) – (1,961) (4,078)
Balance at 31 December 2015 830 (3) 37,053 680 530 832 (9,343) 4 (1,107) (29,476)

Consolidated Statement of Cash Flows

For the year ended 31 December 2015

Unaudited

2015 2014
£’000 £’000
Operating activities
Profit for the year before exceptional items (1,257) 2,852
Exceptional items (469) (2,393)
Profit for the year (1,726) 459
Depreciation of property, plant and equipment 582 573
Amortisation of intangible assets 2,827 2,540
Impairment of goodwill – 2,528
Interest receivable (31) (58)
Tax charge 329 630
Employee equity settled share options 243 232
Changes in trade and other receivables 414 (71)
Changes in trade and other payables (275) (624)
Taxes paid (416) (420)
Net cash inflow from operating activities 1,947 5,789

Investing activities
Acquisition of ScrapRunner (1,186) –
Cash payments to acquire property, plant and equipment (624) (618)
Cash payments on capitalised development (1,967) (1,801)
Interest received 31 58
Net cash outflow from investing activities (3,746) (2,361)

Financing activities
Proceeds from share issues 719 338
Share Buy Back (250) –
Dividends paid (1,524) (1,378)
Net cash outflow from financing activities (1,055) (1,040)

Net changes in cash and cash equivalents (2,854) 2,388
Cash and cash equivalents, beginning of year 9,580 7,222
Exchange differences on cash and cash equivalents (132) (30)
Cash and cash equivalents, end of year 6,594 9,580
Selected explanatory notes:

1. Nature of operations and general information

Brady plc and its subsidiaries’ principal activity is the provision of trading, risk management and settlement solutions to the energy, metals, recycling and soft commodity industries, through the delivery of client focused software and services.

The Group provides the leading trading and risk management software for global commodity markets. The Group provides a complete integrated solution supporting entire commodities trading operations.

Brady plc, a public limited liability company, is the Group’s ultimate parent company. It is registered in England and Wales. The address of Brady plc’s registered office, which is also its principal place of business, is Riverside House, 2A Southwark Bridge Road, London SE1 9HA.

Brady plc’s shares are listed on the London Stock Exchange’s Alternative Investment Market (AIM). Brady plc’s consolidated full year financial statements are presented in British pounds (£), which is also the functional currency of the parent company.

2. Basis of preparation

The financial information included in this report does not constitute statutory accounts for the purposes of section 434 of the Companies Act 2006. The comparative financial information contained in this statement has been extracted from the 2013 financial statements upon which the Auditor’s opinion is unqualified and does not include any statement under Section 498(2) or Section 498(3) of the Companies Act 2006. For further information, please refer to Brady plc’s Consolidated Financial Statements 2014, which have been filed with the Registrar of Companies and are available on the Company’s website, www.bradyplc.com.

These condensed consolidated preliminary financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs) and the Companies Act 2006 that applies to companies reporting under IFRS and IFRIC interpretations.

3. Summary of significant accounting policies

The accounting policies applied by the Group are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2014.

Going concern

The Group has maintained its strong liquidity position and remains debt free. The Group’s forecasts and projections, taking into account reasonably possible changes in trading performance of the Group show that the Group should be able to operate within the level of its current financing. Revenue, operating margin and cash flow budgets have been prepared at business unit level and, as a result, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its consolidated financial statements.

4. Segment reporting

Operating segments

In accordance with IFRS 8, “Operating Segments”, information for the Group’s business units has been derived using the information used by the chief operating decision maker. The Executive Directors have been identified as the chief operating decision maker, as the Board is responsible for the allocation of resources to business units and assessing their performance. The Group is organised into three business units comprising different market sectors within the ECTRM market and each business unit is able to operate globally. The three business units are Commodities, Energy and Recycling. The profit measure used by the Board is business unit contribution, which is operating profit for the business unit before the allocation of central and shared expenses, the amortisation of acquired intangible assets, interest income, interest expenses and before exceptional items and taxation. All inter-segmental transfers are carried out at arm’s length prices.

The tables below show an analysis of the results by operating segment:

2015

Revenues

2015

Business unit contribution

2014

Revenues

2014

Business unit contribution

£’000 £’000 £’000 £’000

Commodities business unit 12,414 3,662 14,420 5,859
Energy business unit 10,738 2,779 12,589 2,816
Recycling business unit 4,222 70 4,006 787
27,374 6,511 31,015 9,462
Amortisation of acquired intangible assets (1,640) (1,613)
Central and shared costs (5,830) (4,675)
Operating result before exceptional items (959) 3,174

Add Back:
Depreciation 582 573
Amortisation of capitalised development 1,187 928
Amortisation of acquired intangibles 1,640 1,613

EBITDA 2,450 6,288
The chief operating decision maker of the Group does not analyse the net assets according to revenue type or business unit.

Revenue by geography

An analysis of sales revenue by geographical market is given below:

2015 2014
£’000 £’000

EMEA 19,750 21,096
Americas 6,230 7,206
APAC 1,394 2,713
27,374 31,015
2015 2014
£’000 £’000

United Kingdom 4,340 5,178
Overseas countries 23,034 25,837
27,374 31,015
Countries where revenue represents more than 10% of Group revenues are detailed below:

2015 2014
£’000 £’000

United Kingdom 4,340 5,178
Switzerland 4,933 3,788
Norway 4,407 4,941
USA 4,541 5,486

The Group generates revenue from software licence sales, recurring maintenance fees and the provision of associated consulting and development services. Revenues can be analysed as below:

2015 2014
£’000 £’000

Software licence sales 5,185 7,541
Recurring support and maintenance and rental revenues 15,249 15,848
Service fees including development 6,940 7,626
27,374 31,015
The Group had non-current assets (excluding deferred tax) outside of the United Kingdom at the year-end date as follows:

2015 2014
£’000 £’000

Property, plant and equipment 440 469
Goodwill 15,676 16,066
Intangible assets – client contracts acquired 2,134 2,346
Intangible assets – software acquired 4,213 5,525
Capitalised development costs 792 665
23,255 25,071
This reconciles to total non-current assets (excluding deferred tax) as follows:

2015 2014
£’000 £’000

United Kingdom 7,696 7,001
USA 6,964 5,199
Singapore 6 4
Switzerland 2,989 3,615
Norway 13,323 16,253
Total non-current assets 30,978 32,072
The management of the Group does not analyse the net assets according to revenue type.

5. Earnings per share

The calculation of the basic earnings per share is based on the profits attributable to the shareholders of Brady plc divided by the weighted average number of shares in issue during the year.All earnings per share calculations relate to continuing operations of the Group. Separate calculations have been prepared related to the profit before and after exceptional items.

Profits attributable to shareholders

£’000

Weighted average number of shares

Basic earnings per share amount in pence

2015 before exceptional items (1,257) 82,704,721 -1.52
2015 (1,726) 82,704,721 -2.09
2014 before exceptional items 2,852 81,316,778 3.51
2014 459 81,316,778 0.56
The calculation of the diluted earnings per share is based on the profits attributable to the shareholders of Brady plc divided by the weighted average number of shares in issue during the year, as adjusted for dilutive share options. All earnings per share calculations relate to continuing operations of the Group. Separate calculations have been prepared related to the profit before and after exceptional items.

Dilutive options

Anti-dilutive options

Diluted earnings per share amount in pence

2015 before exceptional items 639,836 5,710,302 -1.51
2015 639,836 5,710,302 -2.07
2014 before exceptional items 933,817 1,747,971 3.47
2014 933,817 1,747,971 0.56
The calculation of the adjusted earnings per share, as calculated by external analysts, is based on the profit after tax, adjusted for acquired intangible assets amortisation, share based compensation, exceptional items and normalised tax, and is calculated as follows:

2015 2014
£’000 £’000
Profit for the year (1,726) 459
Add back:
Exceptional Items 469 2,393
Amortisation of acquired intangibles 1,640 1,613
Share based compensation 243 232
Tax charge 329 380
Deduct:
Normalised tax at 15% (2014: 15%) (142) (762)
Adjusted profit 813 4,315

Adjusted profits attributable to shareholders

£‘000

Weighted average number of shares

Basic earnings per share amount in pence

2015 813 82,704,721 0.98
2014 4,315 81,316,778 5.31

Dilutive options

Anti-dilutive options

Adjusted diluted earnings per share amount in pence

2015 639,836 5,710,302 0.97
2014 933,817 1,747,971 5.25
The reconciliation of average number of ordinary shares used for basic and diluted earnings per share is as below:

Weighted average number of ordinary shares 2015 2014

Used for basic earnings per share 82,704,721 81,316,778
Under option 639,836 933,817
Used for diluted earnings per share 83,344,557 82,250,595

6. Exceptional items

2015 2014
£’000 £’000

Impairment of goodwill – 2,528
Provision in respect of overseas tax enquiry regarding transfer pricing – 250
Other professional fees relating to tax enquiry – 72
Release of SAI earnout – (457)
Reorganisation costs 347 –
Acquisition costs in relation to ScrapRunner 122 –
469 2,393
7. Treasury shares

The total number of ordinary shares held in treasury at the end of the year was 4,306 (2014: 4,306).

8. Post balance sheet events

On 4th January 2016 the Group completed a very small but strategically important acquisition and acquired 100% of the share capital of Raft International Limited from Temenos Group AG. Raft International Limited owns and operates the energycredit product. Energycredit provides specialised domain expertise in credit risk to the energy and commodity markets with a software development facility in India.

9. Financial statements

Copies of the 2015 annual report and consolidated financial statements will be posted to shareholders shortly and will be available from the Company’s registered office at Riverside House, 2A Southwark Bridge Road, London SE1 9HA and on the Company’s website www.bradyplc.com.

18 January 2016: Trading Statement for Full Year 2015

Highlights:

Trading in line with market expectations
Four new contract wins since 17 December
Cash ahead of market expectations
Cost cutting initiatives that were notified in the 30 November Trading Update have now been completed
Brady, the leading global provider of trading risk management and settlement solutions to the energy, commodities and recycling sectors, is pleased to report that it has secured four new contracts since its last update on 17 December 2015.

Recent contract wins were geographically diverse and include: a deal with a Chinese-owned company based in Singapore, a renewable energy company in Norway and two significant trading teams based in Switzerland.

Cash on 31 December 2015 was £6.5 million, which is ahead of market expectations and December’s trading was in line with management’s expectations. Full year results are expected to be in line with current market forecasts.

For further information please contact:

Brady plc
Gavin Lavelle, Chief Executive Officer

Martin Thorneycroft, Chief Financial Officer

Telephone: +44(0)1223 479479
Cenkos Securities plc
Ivonne Cantu / Oliver Baxendale (Sales)

Telephone: +44 (0)20 7397 8900

Redleaf Communications

Charlie Geller / Harriet Lynch

Telephone: +44 (0)20 7382 4730

About Brady

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global 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, to back office financials and treasury settlement for energy, refined, unrefined and scrap metals, soft commodities and agriculturals.

Brady has 30 years’ expertise in the commodity markets with some 400 customers worldwide, who depend on Brady’s software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world’s largest financial institutions, trading companies, miners, refiners and producers, recycling companies, scrap processors, 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

Brady plc: Twitter/Facebook/LinkedIn

7 September 2015: 2015 Brady Interim Results

(“Brady”, the “Company” or the “Group”)

INTERIM RESULTS

For the six months to 30 June 2015

Brady, the leading global provider of trading and risk management solutions for metals, recycling, energy and soft commodities, is pleased to announce its interim results for the six months to 30 June 2015.

Highlights

Performance in line with market expectations for the full year with nine significant new licence deals signed in first half of the year

· Anticipated strong performance for H2 2015 with visibility on 80% of revenues for the full year

· Continued progress on size and geographic scope of contract wins. Landmark deals include:

o Global deal with one of the world’s largest commodity companies to deploy software in eight locations around the world

o First major recycling deal outside the US for world’s largest recycling company with deployment in the Asia Pacific region as part of a global roll-out.

Financial Highlights

· Revenues of £14.2 million (H1 2014: £15.6 million). YOY reduction resulting from forex movements (£0.5 million) and timing of licence sales.

· Progress on recurring revenues

o £7.8 million recurring revenues (£8.2 million at consistent currency rates) compared to £7.9 million in H1 2014, representing organic growth of 4 per cent year on year.

o 55 per cent of total sales (H1 2014: 51 per cent).

· Strong financial position maintained – cash at bank on 30 June 2015 of £6.2 million (£7.5 million at end of July 2015)

Financial Summary:

(Unaudited)

(Unaudited)

(Audited)

6 months to

30 June

2015

6 months to

30 June

2014

Year to

31 December 2014

£’000

£’000

£’000

Revenue

14,106

15,604

31,015

Recurring revenue

7,799

7,933

15,848

EBITDA before exceptional items

1,184

3,016

6,288

Operating result before exceptional items

(389)

1,440

3,174

Dividend paid (pence per share)

1.85

1.70

1.70

Adjusted earnings per share (pence) 2

0.53

2.49

5.31

Basic earnings per share (pence)

(0.53)

1.32

3.51

Cash

6,197

6,006

9,580

No exceptional items in H1 2015 or H1 2014

1Consistent currency numbers are calculated by translating the 2015 interim results at the same exchange rates as those used in the 2014 interim consolidation.

2Adjusted earnings per share, as calculated by external analysts, are based on the profit after tax adjusted for acquired intangible assets amortisation, share based compensation, exceptional items and normalised tax.

Operational Highlights:

· Nine significant new licence deals signed in first half of the year, including:

o A global deal with one of the world’s largest commodity companies to deploy software in eight locations around the world

o A significant recycling deal with the world’s largest recycling company, extending its deployment of Brady in the Asia Pacific region, as part of a global roll-out. This is our first major recycling deal signed outside the US

· Substantial progress in the Energy business with six new deals and 24 clients signed up for the upgrade route ahead of changes to the Nordic balancing market. Energy Division contribution up 23%

· Seven new clients went live in the first half

· First mobile handheld inspection device launched for recycling companies

· First Cloud-based Hedge Manager solution for commodities live

Paul Fullagar, Chairman of Brady plc, commented:

“I am pleased to see that our investments continue to pay off. This is evidenced by the ability to sign global contracts with the best names in the market place and endorses our investment in product and demonstrates our ability to service and support our clients around the world. Having established leadership in the metals market, the Group can now demonstrate global expansion with world leading clients in the recycling industry. Our transactions are increasing in value which is a reflection of our brand value.

I was delighted to be able to announce the acquisition of ScrapRunner today. This acquisition has further strengthened our offering to the recycling and scrap market as ScrapRunner is the market leading truck dispatch system designed specifically for the recycling and scrap industry.

Our Energy unit continues to grow in revenue and profitability, addressing the market needs as renewables become more influential as a power source and the increase in short term trading and regulatory changes further impacts the requirements of companies to have real-time trading solutions.

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.”

For further information please contact:

Brady plc

Gavin Lavelle, Chief Executive Officer

Martin Thorneycroft, Chief Financial Officer

Telephone: +44 (0)1223 479479

Cenkos Securities

Ivonne Cantu

Alex Aylen (sales)

Telephone: +44 (0)20 7397 8900

Redleaf Polhill

Charlie Geller / David Ison

Telephone: +44 (0)20 7382 4730

About Brady

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global 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 to back office financials and treasury settlement, for energy, refined, unrefined and scrap metals, soft commodities and agriculturals.

Brady has 30 years’ expertise in the commodity markets with some 300 customers worldwide who depend on Brady’s software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world’s largest financial institutions, trading companies, miners, refiners and producers, recycling companies, scrap processors, 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

Brady plc: Twitter/Facebook/LinkedIn

CHAIRMAN’S STATEMENT

The Group has signed important new deals in the first half of 2015 and is operating in line with management expectations for the full year. Brady’s performance has been achieved against a well-publicised environment of challenging market conditions for commodities, energy and scrap metals globally. Against this backdrop the Group continues to increase the size and geographic scope of contract wins, demonstrating its ability to deliver major contracts around the world.

The Group recorded revenue of £14.1 million (2014: £15.6 million), and reported a loss after tax of £0.4 million (2014: profit of £1.1 million) and EBITDA of £1.2 million (2014: £3.0 million). Net cash increased by £0.2 million to £6.2 million.

Revenues reduced by £1.5 million compared to H1 2014. £0.5 million of this is as a result of foreign exchange movements. The remainder is a result of the timing of licence sales. The Group recorded revenue on two significant deals in 2015, compared to three in H1 2014 (c £1.0 million each). Another significant reason for the decline was the high level of backlog revenue recognised in 2014, totalling £1.9 million compared to £0.2 million in 2015.

Recurring revenue for the period was £7.8 million (£8.2 million at consistent currency rates) compared to £7.9 million in the prior period, representing organic growth of 4 per cent year on year in underlying operations. Recurring revenues represent 55 per cent of total sales (H1 2014: 51 per cent). The gross margin for the first half of 2015 increased to 65 per cent compared to 64 per cent for the first half of 2014.

Brady has historically secured the majority of new contracts in the second half and the Board believes this pattern will be repeated in 2015. The Group has visibility on 80% of its revenue for the full year, with contracts signed, and a number of further contracts are in advanced stages of negotiation. Our focus is on securing these licences and continuing to deliver the backlog of projects and revenue that has already been agreed.

The slowdown in the Chinese economy and the related impact on the price of commodities and the general global economic impact have been speculated on recently in the media. To date we have not seen a slowdown in the level of activity in our business. However, we will of course keep the market informed should we see a deteriorating position.

Divisions

The Commodities and Recycling business units have both signed strategically important deals in the first half of 2015. The Recycling business has signed its first major deal outside of the Americas, in line with our strategy of expanding this business unit geographically. The Commodities business has signed a deal with one of the world’s largest commodity companies for ore, concentrate and refined metal on a single platform, which is to be deployed in eight locations around the world. This would not have been possible without the investment made over the past few years in our single platform, multi-asset physical commodities trading system.

The Energy business accelerated the momentum of 2014 with four new deals and two migrations to the go-forward platform. This resulted in underlying currency sales growth of 6.7 per cent and contribution growth of 52 per cent.

Strategy and Operations

More than 50 per cent of Brady’s revenues are recurring, and it has a strong licence backlog and increasing demand for services and development to support our new and existing clients. The Group continues to have a robust balance sheet, with a healthy cash position, no debt and a progressive dividend policy.

The fundamentals remain strong. The global ECTRM market for the commodity, energy and recycling sectors is estimated to be worth over $1.5 billion annually and Brady is securing an increasing share of the global market.

The Group’s strategy is to retain and strengthen its position in providing trading, risk management, settlement and logistics solutions to the global energy, metals, recycling and soft commodity markets.

Brady is signing and delivering larger licence agreements across some of the biggest names in the industry. We have over 300 clients and more than 10,000 end users of our solutions.

Brady’s strategy is to address the global market and continue to win more global deals. Today more than 35 per cent of the Group’s revenues come from outside of Europe and the Group recently signed its first major deal in Australia for the Recycling business. Further, Brady increasingly delivers solutions via the Cloud.

Brady continues to look for synergies across the Group by:

· Integrating the sales teams along geographical lines: Europe, Americas and APAC;

· Cross-selling Brady solutions into the enlarged customer base;

· Reusing technology across the Group, for example Cloud and web deployment;

· Sharing service and development resources across the Group; and

· Using the extended sales team to explore recycling deals outside of the Americas.

I would like to thank all directors and employees for their hard work and commitment during a very busy first half of the year.

Paul Fullagar

Chairman

CHIEF EXECUTIVE’S REVIEW

The Group confirmed its global leadership position in ores, concentrates and refined metals solutions during the first half of 2015. After a competitive bid process, Brady was selected to provide a global solution to one of the world’s largest commodity companies. Our software will be deployed in eight countries and will be used by over 200 people. This endorses our strategy of investing in our solution and critical services and support around the world. To win global deals, it is a prerequisite to have global engagement and credibility with the client.

Brady already has leadership in the North American recycling market, with six of the top ten recyclers using Brady as their principal software solution. The North American recycling market is the world’s largest. The turnover in North America is estimated to be in excess of $100 billion and there are over 1,600 registered members of ISRI, the main recycling trade association. Brady’s strategy is to become the number one recycling software company globally. Therefore, it is very encouraging to sign a significant deal with a major global player in Australia. The solution will support the AAPAC region. This is our first important recycling deal outside of the Americas and underlines our international growth strategy. Brady already provides the principal solution to the customer in North America, the client’s largest region. The next step is to deploy the solution in Europe and complete the global roll-out.

Brady Energy’s momentum continued in the first half, signing six new contracts, including four new names and two migrations from the legacy platform. Clients include a leading European energy company, a large French industrial company and a major energy company in Norway. There are significant changes in the Nordic power settlement market and Brady has signed 24 clients who require these changes to participate in the market.

To optimise on customer engagement and the growing number of our customers involved in multiple asset classes, Brady has completed the full integration of the sales team along geographical lines. Previously, the sales team was aligned with individual product streams.

Having signed nine deals, bookings are ahead of plan and there is good sales momentum going into the second half of the year. Brady is in advanced negotiation for several major contracts and anticipates a strong second half for the business, which is traditionally second half weighted.

Group Technology

Brady started in the refined metals market, and acquired expertise and IP in the ore and concentrates market. The major product initiative in the last year has been to merge the IP for refined, ores and concentrates into a single solution. This investment has now yielded substantial bookings in less than two years. It underlines our position as market leaders and validates our strategy of acquiring selective IP and domain knowledge.

Brady sees growing demand for Cloud services and has signed two further Cloud deals in the first half. The Cloud environment has been strengthened and our first client receiving 99.995% availability has gone live.

In 2016 a major change in the Nordic power market will take place. The current settlement and balancing arrangements, where individual countries have distinct settlement systems and processes, will change to a common pan-Nordic settlement system. Therefore, anyone wishing to settle power in these regions needs to upgrade their solution to meet the new protocols. Brady has signed and engaged with 24 existing and new clients for this new functionality.

The Group has also gone live with the new Hedge Management solution to provide hedging and risk management solutions for metals, recycling and agricultural commodities. This is also delivered as an online Cloud service, vastly reducing the costs associated with accessing these solutions.

Brady Recycling has gone live with a mobile yard inspection device, allowing yard inspectors, equipped with an iPhone/iPad, to perform key tasks related to receiving loads in the recycling yard. This development also forms part of a wider initiative to expand the next generation of Brady solutions into the mobile arena.

Brady Commodities
With the knowledge that one of the leading international trading companies was considering selecting a CTRM solution to manage its global refined metal and concentrate activities, Brady Commodities focused its attention on getting this deal signed and validating our unparalleled capabilities in this space. In the area of metals, our leading multi-commodity physical trading solution now handles refined ferrous, non-ferrous and precious metals, as well as concentrates, scrap and recycled metals. Functionality has also been enhanced for the cotton sector, through integratedUS cotton specific functionalities such as The Seam (this helpscotton growers and buyers find the best cotton prices), equity bale redemption management, EWR warehouse integration, and AMS bale quality management throughout the system.

Hedge Manager, a Cloud-based solution designed specifically for risk management in today’s volatile commodity markets, went live with a major European aluminium producer.

Throughout the first half we have also seen significant ongoing implementations across both metals and agricultural commodities, including go-lives for:

· A major Korean consumer electronics group for its metal trading and procurement activities

· A major Brazilian investment bank for metal warehousing

· A Stamford based trading company focused on concentrates and refined metal trading

· A fund manager, based in Singapore, focused on provision of trade finance and structured finance to commodity clients.

Brady Energy
In H1 2015, Brady Energy’s momentum in winning new contracts continued, comprising four new clients and two migrations from legacy applications. To underscore our strategy two of the new clients were cross sales of new solutions into existing energy clients. New deals include:

· A joint venture between two multi-nationals deploying Brady in a power plant in Northern France, which is predicted to be one of the world’s most flexible and efficient gas-fired power plants. Our solutionallows them to assess the performance and reliability of new turbine technology

· A global organisation that is a world leader in gases, technologies and services for industry and health – producing high value-added gases for its international customers. Our solution is used for gas tolling

· A major regional power producer based in southern Norway, the seventh largest power producer in Norway. It will deploy the Brady solution as its main physical settlement and invoicing engine. The solution is a cross-sell as it already uses Brady ETRM

· A company 100 per cent owned by a Norwegian municipality that aims to be the market leader in the management of financial and physical Nordic power (another cross-sale)

The investment in gas functionality has materialised in the delivery of additional product functionality for a major asset-backed trading client in Continental Europe. Our solution set has been extended to allow for the capture, management and hedging of more complex gas trading structures, as part of the ETRM solution to energy trading organisations. This includes support for procurement contracts, gas storage and complex gas options as well as core gas functionality, such as gas days and locations.

Delivery of changes to support the new NBS (“Nordic Imbalance Settlement”) continues on time and on budget. The NBS project is the harmonisation of systems across the three Nordic countries and represents a fundamental change for the Nordic power market. NBS will provide a harmonised framework of operational business processes for all Nordic balance responsible parties, including reporting, performing settlement, invoicing and collateral management. As such, all market participants are required to adapt to the new rules and standards for information exchange. In addition to increasing the number of existing clients participating in the project to over 20 customers, the division has won new business as market participants gear up for the change.

The division continues to advance its adoption of new technology, with both extensions to the web portal developed last year and deployed at a number of clients, and a new data warehouse module to provide additional and easily accessible data for management and/or web reporting.

Brady Energy had three new clients going live in H1 2015, including:

· A major global renewable energy company using Brady for overall market settlement in Ireland;

· A significant bank in the commodity space using our Cloud-based solution for Power Scheduling & Nomination to support cross border trading and supply activities across multiple European grid networks; and

· A German renewable energy supply company delivering clean energy to large industrial and commercial consumers using Brady’s Power Scheduling & Balancing.

Brady Recycling

Integration of Recycling sales with the rest of the Group was completed in Q1 2015. There has also been a major push to extend our sales and marketing outside of the Americas. It is very encouraging to sign a major deal in Australia for the APAC region. We have also strengthened marketing in the US and Recycling has signed a new client in ferrous scrap trading and based in Ohio.

In regards to product, we have made some excellent progress:

· Recycling launched a mobile yard inspection device, allowing yard inspectors, equipped with a mobile device (iPhone/iPad) connected via cellular/VPN or Wi-Fi, to perform key tasks related to receiving loads in the yard. Operations that previously relied on radio communications or paper documents are now done electronically in real time, improving accuracy and supplier relations through enhanced documentation, increasing frequency updates, and reducing input errors and preventing the danger of any fraudulent transactions.

· Our Buyer Workbench solution is also now available, providing full insight into how best to manage suppliers and supply chain optimisation. Everyone in the recycling industry knows that buying at the right price at predictable volumes is the key to optimal margins. Managing supplier relationships, maintaining favourable pricing and consistently securing material is a difficult balancing act. Alongside supplier contact information and activity history, our robust analytical reporting tools offer the best possible scenarios to optimise feed requirements at the best possible price, based on supplier capabilities, locational restrictions and historical activity.

FINANCIAL RESULTS

Group Revenues

Revenues for the first half of 2015 were £14.1 million (H1 2014: £15.6 million). Currency exchange rates for the Norwegian Krone and the US dollar have changed materially between 30 June 2014 and 30 June 2015, with the average rate for the Norwegian Krone weakening against the pound by 17 per cent and the US dollar strengthening by 8.7 per cent. Overall exchange rate movements have reduced 2015 revenues by £0.5 million. Revenues are down against the same period last year due to the timing of licence sales with three (c £1.0 million each) sales booked in 2014 against two in 2015. Service revenues are also down due to the timing of the licence deals, as the 2015 sales occurred towards the end of the period and hence relatively little associated service fees were billed. Whereas in 2014, most of the deals were signed either in the previous year or early in the period and so more service work was performed by 30 June.

Revenue by Type

H1 2015

H1 2015 (at consistent* rates)

H1 2014

Software licence sales

2,871

2,855

3,589

Recurring (maintenance, rental and hosting)

7,799

8,184

7,933

Service fees including development

3,436

3,613

4,082

14,106

14,652

15,604

Revenue and Contribution by Business Unit

Revenue

H1 2015

Contribution

H1 2015

Revenue

H1 2015 (at consistent* rates)

Contribution

H1 2015 (at consistent* rates)

Revenue

H1 2014

Contribution

H1 2014

Commodities

6,129

1,646

6,063

1,639

7,149

2,898

Energy

5,572

934

6,375

1,151

5,964

757

Recycling

2,405

409

2,214

381

2,491

864

14,106

2,989

14,652

3,171

15,604

4,519

* Consistent currency numbers are calculated by translating the 2015 interim results at the same exchange rates as those used in the 2014 interim consolidation.

Software licence sales were £0.7 million less than the same period last year. Backlog revenue (contracts signed in 2014 but revenue recognised in 2015) amounted to £0.2 million (2014: £1.9 million) of the total software licence sales. Backlog revenue carried into the second half of 2015 amounted to £2.1 million (2014: £2.1 million).

Recurring revenue for the period was £7.8 million (£8.2 million at consistent currency rates) compared to £7.9 million in the prior period, which is organic growth of 4 per cent year on year in underlying operations. Recurring revenues represent 55 per cent of total sales (H1 2014: 51 per cent).

Service and development fees were £3.4 million (£3.6 million at consistent currency rate) against £4.0 million last year.

Operating Result by Business Unit

· Brady Commodities

Revenues decreased from £7.1 million to £6.1 million in the comparative period. Contribution also declined to £1.6 million from £2.9 million (no significant exchange rate impact). The most significant reason for the decline was the high level of backlog revenue totalling £1.5 million recognised in 2014 compared to £0.2 million in 2015. The margin moved down as the Commodity business increased staff to cope with the level of business expected in H2.

· Brady Energy

In consistent currency, revenues increased by 6.7 per cent from £6.0 million in 2014 to £6.4 million in 2015. At actual exchange rates revenues declined from £6.0 million to £5.6 million. In consistent currency, contribution increased by 52 per cent from £0.8 million to £1.2 million and at actual exchange rates by 23 per cent. Margin increased in Energy as tight cost control has resulted in the majority of sales growth dropping straight through to contribution.

· Brady Recycling

In consistent currency, revenues decreased from £2.5 million in 2014 to £2.2 million in 2015 (£2.4 million at actual currency rates). Contribution also reduced to £0.4 million from £0.9 million in the prior period (no significant exchange rate impact) partly as a result of the reduction in sales and partly as a result of an increase in staff and legal and professional fees.

Group Margin

The gross margin for the first half of 2015 increased to 65 per cent compared to 64 per cent for the first half of 2014.

Selling and Administrative Costs

Selling and administrative costs grew to £9.6 million from £8.6 million in the same period last year. The main contributor to this movement was an increase in non-technical staff costs of £0.6 million.

Research and development expenditure represented 25 per cent (£3.5 million) of the Group’s revenues in the first half of 2015 compared to 24 per cent (£3.7 million) in the first half of 2014. This is in line with the Group’s commitment to ensuring that its product offering is maintained and up-to-date. Of the above research and development cost, £1.1 million was capitalised (2014: £0.7 million).

Profitability

Loss before taxation for the first half of 2015 was £0.4 million compared to a profit before taxation of £1.5 million for the first half of 2014. Loss after taxation for the first half of 2015 was £0.4 million, compared to a profit of £1.1 million for the first half of 2014.

EBITDA for the first half of 2015 was £1.2 million compared to £3.0 million for the first half of 2014. The EBITDA margin for the first half of 2015 was 8 per cent compared to 19 per cent for the first half of 2014.

Adjusted earnings per share for the first half of 2015 were 0.53 pence compared to 2.49 pence for the first half of 2014. Basic earnings per share for the first half of 2015 were negative 0.53 pence per share compared to an EPS of 1.32 pence per share for the first half of 2014.

Balance Sheet

The balance sheet continues to be dominated by goodwill and other intangible assets, largely as a natural consequence of the completion of acquisitions. As the majority of acquisitions were denominated in foreign currency, most of which have weakened significantly against sterling between balance sheet dates, there has been a combined reduction in carrying value of £1.4 million which has been charged to reserves.

The Group continues to enjoy a strong balance sheet with net cash balances at 30 June 2015 of £6.2 million (H1 2014: £6.0 million) increasing to £7.5 million by the end of July 2015.

Cash Flow

Cash outflow from operations in H1 2015 was £1.0 million compared to a cash inflow of £1.1 million for the same period in 2014. This is significantly different to EBITDA of £1.1 million. The main reasons for the difference are the changes in working capital, with payables reducing as a result of 2014 year-end bonuses being paid and receivables increasing. This was due to the large licence deals being signed towards the end of H1 with cash only being received in July 2015. Cash at 31 July 2015 was £7.5 million. Brady has no debt.

Investing activities this year consisted solely of capitalised development and fixed asset purchases of £1.1 million and £0.3 million respectively compared to £0.7 million and £0.3 million in 2014.

The Group paid a dividend in May 2015 of £1.5 million, compared to £1.4 million paid in May 2014, an increase of 11 per cent. Consistent with prior years, the Board is not recommending the payment of an interim dividend for 2015.

Market

H1 has seen a drop in most commodity prices across the board. For example, we are experiencing a six-year low in copper prices, with oversupply expected to double this year, and demand to remain weak with China’s economy expanding at the slowest pace since 1990. Whilst Brady’s revenues do not directly correlate to commodity and energy prices, the volatility in the underlying prices creates opportunities for traders and consumers to benefit from lower input prices. Commodity producers are focusing on cost reduction. With a pick up in the US economy offset by a slowdown in China’s growth, the Group believes that the general rebound in the global economy has yet to be reflected in overall increased demand for commodities and energy. Commodity prices are cyclical and will recover in due course. The Group also recognises ongoing opportunities as a result of the further deregulation of the European energy market.

The change in commodity driven businesses has shifted dramatically over the past five years with bank revenues declining from $8.7 billion to $3.8 billion and commodity trading companies increasing from $411.8 billion to $816.4 billion. With over 50 per cent of revenues deriving from the trading community, Brady views this market shift favourably.

The activities of the scrap recycling industry in the United States generate nearly $105.8 billion annually in economic benefits in the US. All told, the US scrap recycling industry accounts for 0.68 per cent of the nation’s total economic activity, making it similar in size to the data processing and hosting industry, the dental industry and the automotive repair industry. Brady is perfectly placed, with six of the top ten US recyclers using Brady as their principal processing solution, to address the needs of this growing market sector, particularly in light of increased regulatory demands.

Brady believes that the ECTRM market spends over $1.5 billion annually on software. As the largest European software company with a growing global market share, the Group continues to see significant potential for further growth.

Outlook

The Group has demonstrated good sales performance in the first half of 2015 considering the overall market conditions, with bookings ahead of plan.

For the second half, the Group still has a significant revenue backlog of contracts that have been signed but the revenue not yet recognised, which, when added to the new sales in the first half, underpins the remainder of 2015 and beyond.

The Group’s tendency to secure the majority of new contracts in the second half appears to be trending again in 2015, with significant new licence opportunities in advanced discussions. We look forward to signing and announcing further business in the second half of the year.

Gavin Lavelle

Chief Executive

Consolidated interim statement of comprehensive income

For the six months ended 30 June 2015

Six months to 30 Jun 2015 (unaudited)

Six months to 30 Jun 2014 (unaudited)

Before exceptional items

2014

Exceptional item

2014

2014

Notes

£’000

£’000

£’000

£’000

£’000

Revenue

4

14,106

15,604

31,015

31,015

Cost of sales

(4,915)

(5,577)

(10,977)

(10,977)

Gross profit

9,191

10,027

20,038

20,038

Selling and administrative expenses

(9,580)

(8,587)

(16,864)

(2,143)

(19,007)

Operating result

(389)

1,440

3,174

(2,143)

1,031

Finance income

26

19

58

58

(Loss)/profit for the period before taxation

(363)

1,459

3,232

(2,143)

1,089

Income tax expense

(71)

(392)

(380)

(250)

(630)

(Loss)/profit for the period attributable to shareholders of Brady plc

(434)

1,067

2,852

(2,393)

459

Other comprehensive income

Exchange differences on translation of foreign operations

(1,816)

(1,213)

(2,970)

(2,970)

Movement in actuarial valuation of defined benefit pension schemes

(286)

(185)

(1,205)

(1,205)

Total comprehensive income for the period

(2,536)

(331)

(1,323)

(2,393)

(3,716)

EBITDA

1,184

3,016

6,288

(2,393)

3,895

Earnings per share (pence)

7

Basic

(0.53)

1.32

3.51

(2.95)

0.56

Diluted

(0.53)

1.30

3.47

(2.91)

0.56

Adjusted

0.53

2.49

5.31

(2.95)

2.36

All of the above relate to continuing operations.

Consolidated interim statement of financial position

30 June 2015

30 Jun 2015 (unaudited)

30 Jun 2014

(unaudited)

31 Dec 2014

Notes

£’000

£’000

£’000

Assets

Non-current assets

Goodwill

10

16,724

21,296

17,567

Other intangible assets

11

12,689

14,405

13,429

Deferred tax asset

505

600

542

Property, plant and equipment

991

868

1,076

30,909

37,169

32,614

Current assets

Trade and other receivables

6,493

6,805

6,209

Accrued income

1,829

2,351

1,159

Cash and cash equivalents

12

6,197

6,006

9,580

14,519

15,162

16,948

Total assets

45,428

52,331

49,562

Equity

Share capital

833

813

817

Treasury shares

(3)

(3)

(3)

Share premium account

37,025

36,167

36,350

Merger reserve

680

680

680

Merger relief reserve

530

1,348

530

Equity reserve

612

935

890

Foreign exchange reserve

(9,042)

(5,469)

(7,226)

Capital reserve

1

1

1

Retained earnings

429

2,975

2,327

Total equity

31,065

37,447

34,366

Liabilities

Current liabilities

Trade and other payables

3,593

4,133

4,466

Deferred income

5,210

5,855

5,389

Current tax payable

593

790

690

9,396

10,778

10,545

Non-current liabilities

Deferred tax liabilities

2,571

3,219

2,789

Pension obligations

2,396

887

1,862

4,967

4,106

4,651

Total liabilities

14,363

14,884

15,196

Total equity and liabilities

45,428

52,331

49,562

Consolidated interim statement of changes in equity

30 June 2015

Share capital

Treasury shares

Share premium account

Merger reserve

Merger relief reserve

Equity reserve

Foreign exchange reserve

Capital reserve

Retained earnings

Total equity

Equity attributable to equity holders of Brady plc:

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

Balance at 1 January 2014

811

(3)

36,018

680

1,348

819

(4,256)

1

3,472

38,890

Dividends

(1,378)

(1,378)

Increase in equity reserve in relation to options issued

116

116

Exercise and cancellation of options

Allotment of shares following exercise of options

2

149

151

Transactions with owners

2

149

116

(1,378)

(1,111)

Profit for the period

1,067

1,067

Other comprehensive income:

Movement in actuarial valuation of defined benefit pension plan

(185)

(185)

Exchange difference on translation of foreign operations

(1,213)

(1,213)

Total comprehensive income for the period

(1,213)

882

(331)

Balance at 30 June 2014

813

(3)

36,167

680

1,348

935

(5,469)

1

2,976

37,448

Increase in equity reserve in relation to options issued

116

116

Exercise and cancellation of options

(161)

161

Transfer of reserves

(818)

818

Allotment of shares

4

183

187

Transactions with owners

4

183

(818)

(45)

979

303

Profit for the period

(608)

(608)

Other comprehensive income:

Movement in actuarial valuations of defined benefit pension plan

(1,020)

(1,020)

Exchange difference on translation of foreign operations

(1,757)

(1,757)

Total comprehensive income for the period

(1,757)

(1,628)

(3,385)

Balance at 31 December 2014

817

(3)

36,350

680

530

890

(7,226)

1

2,327

34,366

Dividends

(1,525)

(1,525)

Increase in equity reserve in relation to options issued

69

69

Exercise and cancellation of options

(347)

347

Allotment of shares following exercise of options

16

675

691

Transactions with owners

16

675

(278)

(1,178)

(765)

Profit for the period

(434)

(434)

Other comprehensive income:

Movement in actuarial valuation of defined benefit pension plan

(286)

(286)

Exchange difference on translation of foreign operations

(1,816)

(1,816)

Total comprehensive income for the period

(1,816)

(720)

(2,536)

Balance at 30 June 2015

833

(3)

37,025

680

530

612

(9,042)

1

429

31,065

Consolidated interim statement of cash flows

For the six months ended 30 June 2015

Six months to 30 Jun 2015 (unaudited)

Six months to

30 Jun 2014 (unaudited)

2014

£’000

£’000

£’000

Operating activities

Profit/(loss) for the period before exceptional items

(434)

1,067

2,852

Exceptional items

(2,393)

Profit/(loss) for the period

(434)

1,067

459

Depreciation of property, plant and equipment

279

287

573

Amortisation of intangible assets

1,294

1,289

2,540

Impairment of goodwill

2,528

Interest receivable

(26)

(19)

(58)

Tax charge/(credit)

71

392

630

Employee equity settled share options

69

116

232

Changes in trade and other receivables

(1,223)

(1,054)

(71)

Changes in trade and other payables

(1,012)

(969)

(624)

Taxes paid

(420)

Net cash inflow from operating activities

(982)

1,109

5,789

Investing activities

Cash payments to acquire property, plant and equipment

(252)

(265)

(618)

Cash payments on capitalised development

(1,093)

(669)

(1,801)

Interest received

26

58

Net cash outflow from investing activities

(1,319)

(934)

(2,361)

Financing activities

Proceeds from other share issues

691

152

338

Dividends paid

(1,525)

(1,378)

(1,378)

Net cash outflow from financing activities

(834)

(1,226)

(1,040)

Net changes in cash and cash equivalents

(3,135)

(1,051)

2,388

Cash and cash equivalents, beginning of period

9,580

7,222

7,222

Exchange differences on cash and cash equivalents

(248)

(165)

(30)

Cash and cash equivalents, end of period

6,197

6,006

9,580

Selected explanatory notes

1. Nature of operations and general information

Brady plc and its subsidiaries’ principal activity is the provision of trading, risk management and settlement solutions to the energy, metals, recycling and soft commodities industries, through the delivery of client focused software and services.

The Group provides the leading trading and risk management software for global commodity markets. The Group provides a complete integrated solution supporting entire commodities trading operations.

Brady plc, a public limited liability company, is the Group’s ultimate parent company. It is registered in England and Wales. The address of Brady plc’s registered office is Riverside House, 7th Floor, 2A Southwark Bridge Road, London SE1 9HA.

These condensed consolidated interim financial statements have been prepared using the recognition and measurement principles of International Financial Reporting Standards (“IFRS”) as adopted by the European Union and as issued by the International Accounting Standards Board. They do not include all of the information required for full annual financial statements as defined in Section 434 of the Companies Act 2006 and should be read in conjunction with the Consolidated Financial Statements of the Group as at and for the year ended 31 December 2014. The auditor’s report on those financial statements was unqualified and did not contain a statement under Section 498(2) or Section 498(3) of the Companies Act 2006. The consolidated financial statements have been filed with the Registrar of Companies and are available on the Group’s website, www.bradyplc.com.

Brady plc’s shares are listed on the London Stock Exchange’s AIM. Brady plc’s consolidated interim financial statements are presented in British pounds (£), which is also the functional currency of the ultimate parent company.

2. Accounting policies

The accounting policies applied by the Group are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2014.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.

3. Critical accounting judgements and key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimating uncertainty at the reporting date, that have a risk of causing a material adjustment to the carrying values of assets and liabilities within the next financial period are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2014.

4. Segment analysis reporting

Operating Segments

In accordance with IFRS 8, “Operating Segments”, information for the Group’s business units has been derived using the information used by the chief operating decision maker. The Executive Directors have been identified as the chief operating decision makers and the Board is responsible for the allocation of resources to business units and assessing their performance. The Group is organised into three business units comprising different market sectors within the ECTRM market and each business unit is able to operate globally. The three business units are Commodities, Energy and Recycling. The profit measure used by the Board is business unit contribution, which is operating profit for the business unit before the allocation of central and shared expenses, the amortisation of acquired intangible assets, interest income, interest expense and before exceptional items and taxation.

The tables below show an analysis of the results by operating segment:

Six months to 30 Jun 2015

Revenues

Six months to 30 Jun 2015

Contribution

Six months to 30 Jun 2014

Revenues

Six months to 30 Jun 2014

Contribution

2014

Revenues

2014 Contribution

£’000

£’000

£’000

£’000

£’000

£’000

Commodities business unit

6,129

1,646

7,149

2,898

14,420

5,859

Energy business unit

5,572

934

5,964

757

12,589

2,816

Recycling business unit

2,405

409

2,491

864

4,006

787

14,106

2,989

15,604

4,519

31,015

9,462

Amortisation of acquired intangibles

(806)

(801)

(1,613)

Central and shared costs

(2,572)

(2,278)

(4,675)

Operating result before exceptional items

(389)

1,440

3,174

Add back:

Depreciation

279

297

573

Amortisation of capitalised development

488

478

928

Amortisation of acquired intangibles

806

801

1,613

EBITDA

1,184

3,016

6,288

Revenue by Geography

An analysis of sales revenue by geographical market is given below:

Six months to

30 Jun 2015 (unaudited)

Six months to

30 Jun 2014 (unaudited)

2014

£’000

£’000

£’000

EMEA

10,231

9,568

21,096

Americas

3,415

4,205

7,206

APAC

460

1,831

2,713

14,106

15,604

31,015

The Group generates revenue from software licence sales, recurring support and maintenance and rental fees and the provision of associated consulting and development services. Revenues can be analysed as below:

Six months to

30 Jun 2015 (unaudited)

Six months to

30 Jun 2014 (unaudited)

2014

£’000

£’000

£’000

Software licence sales

2,871

3,589

7,541

Recurring support and maintenance and rental revenues

7,799

7,933

15,848

Service fees including development

3,436

4,082

7,626

14,106

15,604

31,015

5. Share issues

The Company made various allotments of ordinary 1 pence shares during the period on the exercise of various share options. This increased the Company’s ordinary shares issued and fully paid at the end of the period by 1,601,553 (year ended 31 December 2014: 222,500).

6. Share buyback

During the period under review, the number of ordinary shares held in treasury has remained at 4,306.

7. Earnings per share

The calculation of the basic earnings per share is based on the profits attributable to the shareholders of Brady plc divided by the weighted average number of shares in issue during the period. All earnings per share calculations relate to continuing operations of the Group. Separate calculations have been prepared related to the profit before and after exceptional items.

Profits/(loss) attributable to shareholders

£’000

Weighted average number of shares

Basic earnings per share amount in pence

Six months ended 30 June 2015

(434)

82,226,920

(0.53)

Six months ended 30 June 2014

1,067

81,134,261

1.32

Year ended 31 December 2014 before exceptional items

2,852

81,316,778

3.51

Year ended 31 December 2014

459

81,316,778

0.56

The calculation of the diluted earnings per share is based on the profits attributable to the shareholders of Brady plc divided by the weighted average number of shares in issue during the period, as adjusted for dilutive share options. All earnings per share calculations relate to continuing operations of the Group. Separate calculations have been prepared related to the profit before and after exceptional items.

Dilutive options

Anti-dilutive options

Diluted earnings per share amount in pence

Six months ended 30 June 2015

1,828,701

(0.53)

Six months ended 30 June 2014

930,961

3,045,374

1.30

Year ended 31 December 2014 before exceptional items

933,817

1,747,971

3.47

Year ended 31 December 2014

933,817

1,747,971

0.56

The calculation of the adjusted earnings per share, as calculated by external analysts, is based on the profit after tax adjusted for acquired intangible assets amortisation, share based compensation, exceptional items and normalised tax and is calculated as follows:

Six months to

30 Jun 2015 (unaudited)

Six months to

30 Jun 2014 (unaudited)

2014

£’000

£’000

£’000

Profit for the year

(434)

1,067

459

Add back:

Exceptional items

2,393

Amortisation of acquired intangibles

806

801

1,613

Share based compensation

68

116

232

Tax charge

71

392

380

Deduct:

Normalised tax at 15% (2014: 15%)

(77)

(356)

(762)

Adjusted profit

434

2,020

4,315

Adjusted profits attributable to shareholders

£’000

Weighted average number of shares

Basic adjusted earnings per share amount in pence

Six months ended 30 June 2015

434

82,226,920

0.53

Six months ended 30 June 2014

2,020

81,134,261

2.49

Year ended 31 December 2014

4,315

81,316,778

5.31

8. Dividends

During the period Brady plc paid dividends of £1,525,000 to its equity shareholders (period ended 30 June 2014: £1,378,000).

9. Exceptional Items

There were no exceptional costs in the period. Exceptional costs in the period ended 31 December 2014 can be summarised as follows:

Six months

30 Jun 2015 (unaudited)

Six months

30 Jun 2014 (unaudited)

2014

£’000

£’000

£’000

Impairment of goodwill

2,528

Provision in respect of overseas tax enquiry regarding transfer pricing

250

Other professional fees relating to enquiry

72

Release of SAI earnout

(457)

2,393

10. Goodwill

The net carrying amount of Group goodwill can be analysed as follows:

Goodwill on consolidation

Purchased goodwill

Total

£’000

£’000

£’000

Gross carrying amount

20,116

90

20,206

Accumulated impairment

(3,392)

(90)

(3,482)

Carrying amount at 30 June 2015

16,724

16,724

Gross carrying amount

20,959

90

21,049

Accumulated impairment

(3,392)

(90)

(3,482)

Carrying amount at 31 December 2014

17,567

17,567

There were no changes in the net carrying amount of purchased goodwill. Changes in the net carrying amount of goodwill on consolidation can be summarised as follows:

Total

£’000

Carrying amount at 1 January 2015

17,567

Foreign exchange movement on retranslation

(843)

Carrying amount at 30 June 2015

16,724

11. Other intangible assets

Intangible assets comprise the following:

30 Jun 2015 (unaudited)

30 Jun 2014 (unaudited)

31 Dec 2014

£’000

£’000

£’000

Capitalised development

5,815

4,573

5,210

Acquired software

4,837

6,892

5,773

Acquired customer contracts

2,037

2,940

2,446

12,689

14,405

13,429

The carrying value of intangible assets at 30 June 2015 can be split into the following cash generating units:

Capitalised development

costs

Acquired

software

Acquired

customer

contracts

Total

£’000

£’000

£’000

£’000

Commodities business unit

2,694

673

234

3,601

Energy business unit

2,582

3,085

1,421

7,088

Recycling business unit

539

1,079

382

2,000

Carrying amount at 30 June 2015

5,815

4,837

2,037

12,689

Changes in the net carrying amount of Group intangible assets can be summarised as follows:

Capitalised development

costs

Acquired

software

Acquired

customer

contracts

Total

£’000

£’000

£’000

£’000

Carrying amount at 1 January 2015

5,210

5,773

2,446

13,429

Additions in the period

1,093

1,093

Amortisation in the period

(488)

(567)

(239)

(1,294)

Forex movement on retranslation

(369)

(170)

(539)

Carrying amount at 30 June 2015

5,815

4,837

2,037

12,689

12. Cash and cash equivalents

Cash and cash equivalents comprise the following:

30 Jun 2015

(unaudited)

30 Jun 2014

(unaudited)

31 Dec 2014

£’000

£’000

£’000

Cash and cash equivalents

6,197

6,006

9,580

13. Financial statements

The financial information for the year ended 31 December 2014 included in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group’s statutory accounts for the year ended 31 December 2014 have been filed with the Registrar of Companies. This statement can be obtained from the Company’s registered office at Riverside House, 7th Floor, 2A Southwark Bridge Road, London SE1 9HA and will be available on the Company’s website www.bradyplc.com.

27 July 2015: Brady to provide Sims Metal Management with an enhanced solution to manage its global metals recycling operations

27th July 2015, London: Brady plc (BRY.L), a leading global provider of trading, risk management and settlement solutions to the energy, commodities and recycling sectors, announced today that Sims Metal Management (“Sims”), the world’s largest recycling company, has selected Brady to further support the organisation’s management of its global recycling operations.

Sims is the world’s leading publicly listed metals and electronics recycler. It has over 250 locations and more than 6,000 employees with operations encompassing the buying, processing and selling of ferrous and non-ferrous recycled metals. Their metals recycling operations are geographically diverse, with operations in five continents, including the United States, Canada, Australia, New Zealand and the United Kingdom and comprise a network of processing facilities. Many of these processing facilities have deep-water port access, supported by an extensive network of feeder yards from which to source recyclable ferrous and non-ferrous metals.

Having relied on Brady Recycling’s software for many years in North America and Australasia, Sims’s Australian operations have recommitted to upgrade critical business systems to the latest version of Brady’s recycling platform. This decision fits with its global strategy to consolidate operations on to a single platform, to provide better visibility, optimise efficiencies and facilitate decision making across the Sims group, The Brady solution, backed by its team of experts in the recycling space, will assist and support its key strategic goals; to streamline, optimise and grow.

Through the implementation of a global solution Sims will benefit from having enterprise wide visibility, timely actionable financial reporting, efficient management of positions and opportunities across the group, along with standardised operational and audit controls. A global solution will facilitate multiple efficiencies for the IT department. Less updating and maintenance of multiple systems coupled with consistent processes will create efficiencies across the enterprise.

Gavin Lavelle, CEO of Brady plc commented: “Sims has been a loyal customer for many years and I am delighted that we are now able to provide enhanced functionality to support its operations across the globe. I am delighted to have been selected as the partner of choice by the world’s largest recycler. Being selected in this case is confirmation of the reputation that we have gained serving these markets for over 30 years, further reinforcing our position as the leading vendor of recycling solutions”. Continuing he said: “As a strategic partner to Sims MM, we will beproviding tools to leverage and improve its position as the largest metal recycler globally. Of key importance for Sims MM was Brady’s strength in inventory management. Being able to accurately value purchases and finished goods inventory, using Brady’s pricing, production and fully automated scales functionality, ensures total accuracy in position reporting across its global sites. The Brady solution will deliver a comprehensive global platform to efficiently support the management of Sims’s recycling operations locally, regionally and globally”.

# # #

Editorial contact for Brady

Rebecca Sanders Hewett/David Ison/Charlie Geller

Redleaf Polhill

Tel: +44 (0) 20 7382 4730

Email: rsh@RedleafPolhill.com, di@RedleafPolhill.com or cg@RedleafPolhill.com
Notes to Editors

About Brady plc

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global commodity, recycling 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, scrap and secondary metals, soft commodities and agricultural products.

Brady has 30 years’ expertise in the commodity markets with over 300 customers worldwide, who depend on Brady’s software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world’s largest financial institutions, trading companies, miners, refiners, scrap processors, recyclers and producers, 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

Brady plc:Twitter/Facebook/LinkedIn

About Sims Metal Management

Sims Metal Management is the world’s leading metals and electronics recycler. It is the global leader in the secure and sustainable management of resources for industry, organisations and the public-at-large. Today, Sims Metal Management has over 250 locations on five continents, and more than 6,000 employees. In addition to its industry-leading metal recycling business, Sims Metal Management also operates the world’s leading electrical and electronics recovery and recycling business, Sims Recycling Solutions, as well as Sims Municipal Recycling, which handles kerbside materials.

For further information visit: www.simsmm.com

27 July 2015: Brady acquires ScrapRunner to strengthen its recycling portfolio

27th July 2015, London:Brady plc (BRY.L),the leading global provider of trading, processing and risk management solutions for metals, recycling, energy and soft commodities, is pleased to announce that it has acquired the assets and goodwill of the ScrapRunner product, from Enaptive Inc(“ScrapRunner”). Enaptive is a US-based company providing dispatch systems designed specifically for the scrap metal and recycling industry markets. ScrapRunner has been operating since 2003 and its clients are based throughout North America and Europe.

The total consideration payable for ScrapRunner is USD 2 million (approximately £1.3 million) payable as to USD 1.8million in cash on completion, USD 100,000 in cash one year after completion and USD 100,000 in cash two years after completion subject to any amounts that may become payable to Brady under the indemnifications. This consideration includes working capital of USD 200,000, which will be adjusted by a completion accounts verification process. The acquisition is expected to be earnings enhancing in 2015.

ScrapRunner’s unaudited draft accounts for the year ended 31 December 2014 show revenues of USD 2 million, 62 per cent. of which are recurring, generating a profit before tax of USD 694,000. As at 4 September 2015 unaudited net assets were approximately USD 157,000.

The Directors believe that the acquisition has a compelling strategic, commercial and financial rationale, in particular:

The ScrapRunner solution manages complex container pick-up and delivery scheduling, tracks the location of containers as well as tracking and reporting on the activity and location of trucks using Global Position System (GPS) tracking. These abilities will broaden Brady Recycling’s product offering and it is anticipated that it will facilitate further growth;
ScrapRunner has over 70 clients today and drivers using 1,943 handheld applications with fleet sizes ranging from 1 to 500 trucks;
ScrapRunner can be licensed for on premise hosting by the customer or licensed on a recurring revenue, Software as a Service (SaaS) basis. Currently, approximately 30 customers are using the SaaS solution which will be the ongoing licence model;
ScrapRunner has already proved to be a successful partner for Brady and the two companies have fourteen common clients, including 9 of the top 10 North American recycling companies
As with previous acquisitions, overlaying Brady’s routes to market, salesforce and commercial infrastructure is expected to accelerate the growth of ScrapRunner; and
Individuals employed by ScrapRunner have significant industry experience which will further aid the Group.
Brady’s expertise in recycling and scrap solutions combined with ScrapRunner’s strength in dispatch solutions creates an excellent platform to drive further revenue growth.

Commenting on the acquisition, Gavin Lavelle, CEO of Brady, said:

“The US scrap market is worth $100 billion in turnover, and 50% of this is already transacted using Brady software, with seven of the top 10 recycling companies using Brady. We believe recycling represents a significant opportunity for Brady and are confident that the combined ScrapRunner/Brady group can increase our global market share even further. ScrapRunner is the leading dispatch solution designed for the recycling and scrap markets and is highly complementary to our solutions, presenting opportunities to cross and up-sell on a global basis. ScrapRunner also provides further domain knowledge in the recycling and scrap markets and overall provides exciting new growth opportunities.”

# # #

Editorial contact for Brady

Rebecca Sanders Hewett/David Ison/Charlie Geller

Redleaf Polhill

Tel: +44 (0) 20 7382 4730

Email: rsh@RedleafPolhill.com, di@RedleafPolhill.comor cg@RedleafPolhill.com
Notes to Editors

About Brady plc

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global commodity, recycling 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, scrap and secondary metals, soft commodities and agricultural products.

Brady has 30 years’ expertise in the commodity markets with over 300 customers worldwide, who depend on Brady’s software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world’s largest financial institutions, trading companies, miners, refiners, scrap processors, recyclers and producers, 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

Brady plc:Twitter/Facebook/LinkedIn

20 July 2015: Brady plc Trading Statement

Brady plc (“Brady” or the “Group”)

Trading Statement

Brady, the leading global provider of commodity, energy and recycling software is pleased to provide a trading update for the half year to 30 June 2015.

The Group continues to show global leadership in the metals business as well as increasing its global presence in the recycling business. Following a successful competitive tender, Brady signed a major deal with one of the world’s largest commodity companies to support their global refined metals and raw materials activities. Additionally Brady was pleased to be appointed by a world leading recycling company, to deploy the Group’s systems in Australasia, as part of the recycling company’s strategic expansion.

The Energy business unit made further substantial progress by signing six new deals, including two migrations to Brady’s go forward energy trading and risk management platform.

The Board was pleased that during the period the Group signed a total of nine new contracts compared to seven last year, especially given the challenging market conditions in the sectors in which we operate. Whilst we expect first half revenues to be slightly lower than last year, it is this deal momentum and strong sales pipeline going into the second half which we expect will deliver the anticipated full year on year sales growth and the Group remains on track to deliver full year results in line with market expectations. .

Gavin Lavelle, CEO of Brady plc, commented: “I am delighted to have signed major deals with world leaders across our three business units. The metals deal is with a top class name, supporting their physical and derivatives trading activities in nine locations around the world. The recycling deal extends the company’s use of our software in the Asia Pacific region, with the next step being to complete world-wide deployment across its European sites. The Board believes these deals demonstrate our ability to execute globally with some of the largest players in the industry.

I am also pleased to see the upward momentum in our Energy business continue; growth in revenue and earnings has been the result of six new contract wins in the period. Our enlarged business is well positioned to capitalise on the powerful drivers in the market.

I look forward to providing a more detailed commentary in the Interim Report”

Full details of the Group’s financial performance for the period ended 30 June 2015 will be provided in the Interim Results, which are expected to be announced on 7th September 2015.

For further information please contact:

Brady plc
Gavin Lavelle, Chief Executive Officer

Martin Thorneycroft, Finance Director

Telephone: +44(0)1223 479479

Cenkos Securities plc
Ivonne Cantu/ Camilla Hume

Oliver Baxendale (Sales)

Telephone: +44 (0)20 7397 8900

Redleaf Polhill
Charlie Geller / David Ison
Telephone: +44 (0)20 7382 4730

About Brady

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global 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, unrefined and scrap metals, soft commodities and agriculturals.

Brady has 30 years’ expertise in the commodity markets with some 300 customers worldwide, who depend on Brady’s software solutions to deliver vital business transactions across their global operations. Brady clients include many of the world’s largest financial institutions, trading companies, miners, refiners and producers, recycling companies, scrap processors, 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

Brady plc: Twitter/Facebook/LinkedIn