Brady, the leading global provider of Commodity, Energy and Recycling Software for Transaction Processing and Risk Management, provides an update on trading performance for the full year to 31 December 2013.
Brady ended the year strongly, securing five new contracts in the last six weeks of the year worth in total around £3m and taking the total number of new substantial contracts to 13. Revenue for these contracts will be recognised in 2014.
The Company expects to report revenues of £29.3m and adjusted EBITDA(1) of approximately £3.6m. This reflects the timing of revenue recognition for the recently signed contracts and the unfavourable currency movement of the Norwegian Krone in the last two months of the year. Cash at year end is expected to be £6.7m (2).
Recurring revenues increased to 57 % of sales and deferred revenue at 31st December is £6.8m (previous year £3.7m), providing a strong platform for growth in 2014. Combined with the impact of the 2013 reo-organisation which produced annualised savings of approximately £2m, the Group is now well positioned for 2014.
(1) Before exceptional items; (2) Figures subject to audit
The Group secured 13 substantial new licence contracts in the year. Amongst the deals signed in the second half of the year, consecutive deals were signed as record contract wins for Brady, one of the companies headquartered in Stamford, USA and the other in Singapore. The third substantial deal was signed with one of the largest North American recycling companies. This demonstrates Brady's ability to sign increasingly larger, global deals with the major players in the commodities trading space. Importantly the revenue for these contracts will be recognised in 2014 and beyond, underpinning our future revenues. The Group is pleased with another record sales year in the Americas, following a strong 2012. There are definite signs that as the US economy picks up, there is increasing demand for our solutions. Furthermore, Brady's brand and positioning has strengthened significantly with the addition of Brady Recycling, validated by the three new licence contracts signed at the end of 2013.
The Group also signed three deals with companies that have strong trading ties with Russia and Eastern Europe, another exciting market in which Brady is gaining increasing market share.
The Group has seen strong interest in Brady Cloud solution, resulting in an impressive 15% growth in cloud revenues.
Across the organisation, Brady had 26 significant client implementations, including four clients in Asia and two in Germany, marking our first implementations in this growing territory.
Gavin Lavelle, CEO, commented: "While disappointed with the impact of timing and currency impact, I am delighted to be able to report a record sales booking year as well as compelling growth in the Americas. As Brady has grown in scale, we are increasingly able to secure significant global deals, with some of the very best names in the commodities trading space. The momentum built in 2013 has ensured we have a very substantial level of new licence contracted revenue, which drives additional service and development revenues, combined with a reduced cost base gives us every confidence going into 2014."