Investment summary

Early this year Brady acquired Navita for £17.1m and syseca for up to £1.2m - these deals lift revenues by c 60% and significantly strengthen the group’s position in the energy sector. Other recent news includes the appointment of a new chief technology officer and a contract win with one of the world's leading diversified commodity trading houses. We see good potential for upgrades, driven by the shift to a rental model along with cross-selling opportunities and strong business drivers related to the ECTRM sector. On a cash-adjusted basis the rating looks attractive, at c 12.5x FY12 earnings falling to c 12.1x in FY13.

Last updated on 23/04/2012

Industry outlook

Brady provides trading, risk and connectivity software solutions to the global commodity and energy market – mining and oil companies, fabricators, traders, banks etc. Key operational drivers are that the target market is under-invested in IT, auditors and regulators are seeking increased reporting and accountability and the fundamental changes such as electronic trading and the EEGI.

Last updated on 23/04/2012