Brady plc (BRY.L), the global provider of trading, risk management and settlement solutions to the metals and commodities sectors, has announced its results for the half year to 30 June 2010.
Overall, Brady’s operating profit increased by 29%. This is a very encouraging result, particularly considering the prevailing difficult business climate. The Group has seen a strong performance not only in South America and Asia but also from Brady Switzerland, following its acquisition in March, including a 30% increase in Brady’s overall recurring maintenance revenues during the period. The company has established distinct competitive advantages by diversifying the revenue base through securing additional commodity asset classes. With two acquisitions in the last eighteen months, Brady is developing a track record for identifying and securing good acquisition targets and quickly demonstrating strong growth and delivery.
Last week the French Finance Minister, Christine Lagarde, called on the EU to increase regulation of the commodity markets saying, "It is essential that Europe commits fully to regulation of these markets and does so now." Brady’s market focus and growth strategy clearly positions it well to respond to any increase in regulation and risk management of commodity markets, both in Europe and world-wide.
Group revenues have increased by 25% and basic earnings per share for the period increased by 43%. Brady has out-performed the FTSE100 index in both the year-to-date and over the last three years. The company has attracted the attention of a number of investors who have taken significant stakes in company this year.
Paul Fullagar, Chairman of Brady plc, commented: “The Group has continued to deliver growth in revenues and profitability in 2010, prior to exceptional transaction costs.” He continued, “We are pleased to see revenue growth has been achieved both in our base business and in the Brady Switzerland acquisition, which was completed in March 2010 and continues to perform ahead of our initial expectations. In very challenging economic conditions, this is a strong performance. We continue to retain a strong balance sheet, dominated by cash, and with no debt.”
