LONDON (Alliance News) - Brady PLC Monday showed narrowed pretax losses as it increased revenues and weathered continued downward price pressure in commodity and energy prices in the six months ended June 30.
The provider of risk management and trading software for global commodity markets said it remained confident of the prospect of new contracts in advanced discussion.
Revenue growth was weaker than expected due to slow decision making by producers. Brady posted revenues of GBP14.9 million, up from GBP12.1 million in the previous year. Pretax losses narrowed to GBP144,000 from a pretax loss of GBP831,000. In its Brady Metals division, revenues decreased 7.9% to GBP3.5 million due to delayed timing in new licence deals.
Brady remained positive about its position, bolstered by its opportunities pipelines and new significant contracts in advanced discussions. It cautioned that revenue growth from the deals it anticipates sealing in the second half of the year would only be felt in 2014.
Although its revenues are not in direct correlation with commodity and energy prices, Brady said, this had effected the behaviour of traders, and the general improvement in the global economy had yet to be reflected in this market. The company has put in place cost-reduction initiatives over the summer, which it hoped would reduce annual expenses by around GBP2.2 million, Although these savings had not impacted its first half, the benefits would be seen in the third quarter, Brady said.
Brady shares were trading down 11% at 64.25 pence early Monday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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