Brady (LON:BRY) - New licence deals jump 43%
Jan 23rd 2013 - Edison Investment Research today published a report on Brady (BRY.L, LSE:BRY, LON:BRY) entitled "New Licence Deals Jump 43%". In summary, the report says:
Brady has announced that it achieved stronger-than-expected licence revenues in FY12. However, while the metals, softs and recycling groups traded well, the integration of Navita into Brady Energy took longer than expected. Also, the revenue mix shifted against services, and group revenues will be c 6% below our forecast. This was largely offset by high-margin traditional licence sales along with lower-than-expected costs, and adjusted EBITDA rose by a healthy c 40% to £5.3m. Systems Alternatives International (SAI), the metals recycling software business acquired in November, has been trading ahead of expectations and year-end cash at £7.9m (c 9.8p per share) was £0.7m better than our estimates. We believe the shares are attractive if management can sustain the businesses momentum and...
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