Brady re-focus paying off
Brady plc, which provides energy, commodity and recycling software, is starting to see the benefits of a transition to recurring revenue agreements from a one-off licence model.
The objective was to improve earnings visibility and facilitate the delivery of sustainable growth. In 2017 recurring revenues represented 67 per cent of total sales.
Work has continued on restructuring the business to better integrate the service offerings, resulting in exceptional costs of approximately £2 million. The board expects to report revenue for the year ended December 31 of approximately £27m and to report adjusted EBITDA in the range of £0.5m to £0.7m. Net cash at December 31 was £4.4m.
Following a review of the group’s strategic plan it has disposed of its non-core US recycling business for a maximum cash consideration of £4.6m to AMCS Group.
The disposal will enable the company to focus its efforts on supplying its market-leading software and services to the energy and commodity sectors and further streamlines the group.