Brady Regulatory News (BRY)

30 November 2015

Brady plc

("Brady", the "Group" or the "Company")

Trading Update

We reported in September that the Group was operating in line with management's expectation and that this performance had been achieved against an environment of challenging market conditions for commodities, energy and scrap metal. We noted that we had not seen a slowdown in the level of activity in our business, but we would keep the market informed if we did see a deterioration.

Over the last month or so market conditions have materially deteriorated in the commodity sector in which Brady's clients operate. Several of the major commodity trading companies have reported deteriorating trading conditions, issued profit warnings alongside announcements of cost cutting or restructuring measures. The net result of this for our business is that customers and new prospects are lengthening buying cycles.

In our September update, we reported a healthy sales pipeline that more than covered the sales needed to complete the full year in line with market expectations. Whilst some of those opportunities have been converted into contract wins, including 5 cloud deals, we have seen a prolongation of the time required to convert the pipeline into the sales that we anticipated. Whilst most of the opportunities that were there in September are still good prospects, they will not be converted into sales in this financial year. As a result, revenues and EBITDA for the financial year ended 31 December 2015 will be materially below market expectations. The Group's balance sheet remains healthy with cash in excess of £4 million and no debt.

 The Board has initiated a cost reduction exercise of £1.7million to improve profitability in 2016 over 2015.

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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

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