(Alliance News) - Shares in risk management software firm Brady PLC fell sharply Monday on a warning over its full year profit and revenue performance, after its interim loss deepened as revenue fell after forecasted new customer revenue failed to appear.
For the six months ended June, pretax loss deepened to GBP3.5 million from GBP2.3 million the year prior. This was after revenue fell 9.5% to GBP9.5 million from GBP10.5 million the year before.
"Although Brady's half-year performance was broadly aligned with expectations, our forecasted pipeline of revenue from new customers will not materialise during 2019 leading to expected revenues of GBP19 million and a consequent impact on Ebitda," Brady Chief Executive Officer Carmen Carey said.
In 2018, Brady generated adjusted Ebitda of GBP2.6 million on revenue of GBP23.2 million the year prior.
For the interim 2019 period, adjusted Ebitda loss deepened to GBP1.1 million from GBP423,000 the year prior.
"This performance, combined with the full strategic product review that we have now completed, has led us to initiate a comprehensive new strategic plan," Carey added.
Brady does not pay an interim dividend.
"This is focussed on nurturing our customers, improving execution fundamentals, expanding our reach and ensuring we secure our market leadership position during this exciting time in the trading and risk management industry," Carey continued. "With this new strategy and a new and experienced board in place, we believe we are well-positioned to deliver a scalable, predictable and sustainable business."
Shares in Brady were 9.1% lower at 25.00 pence in London on Monday.
