Reports Analyst Briefing Note Brady

ComTech
 Analyst

Briefing
 Note

Brady
 PLC
Overview  
Brady
 PLC
 (Brady)
 has
 provided
 trading
 and
 risk
 management
 solutions
 into
 the
 metals
 sector
 since

its
  inception
  in
  1985
  listing
  on
  the
  AIM
  (the
  junior
  London
  Stock
  Market)
  in
  2004,
  In
  2007,
  the

company
  brought
  in
  a
  new
  management
  team
  headed
  by
  CEO
  Gavin
  Lavelle
  and
  that
  team
  has

proven
  successful
  in
  executing
  the
  company’s
  strategy
  of
  growth
  via
  organic
  development

supplemented
 by
 acquisitions.
 Over
 the
 last
 several
 years,
 the
 company
 has
 gone
 from
 strength
 to

strength,
  broadening
  its
  product
  range
  and
  expanding
  into
  new
  commodities,
  markets
  and

geographies.

Brady
 is
 the
 largest
 Europe-­‐based
 Energy
 and
 Commodity
 Trading
 and
 Risk
 Management
 (ECTRM)

vendor
 and
 is
 regarded
 as
 the
 leading
 vendor
 in
 the
 metals
 sector.
 However,
 it
 also
 offers
 a
 number

of
  CTRM
  and
  related
  solutions
  for
  global
  energy,
  ags
  and
  softs
  and
  is
  the
  market
  leader
  in
  North

American
  recyclables.
  Its
  offerings
  in
  trading
  and
  risk
  management
  are
  designed
  to
  enable

producers,
  consumers,
  financial
  organizations
  and
  trading
  companies
  to
  manage
  all
  of
  their

commodity
 transactions
 in
 an
 integrated
 solution
 -­‐
 including
 pre-­‐deal
 analysis,
 trade
 capture,
 risk

management,
  foreign
  exchange,
  credit
  risk,
  logistics,
  cash
  management,
  physical
  operations,

settlement,
 back
 office,
 financials,
 accounting
 and
 treasury.

With
  more
  than
  300
  customers
  worldwide,
  Brady
  ranks
  amongst
  the
  top
  five
  vendors
  of
  CTRM

solutions,
 and
 is
 the
 only
 currently
 publically
 traded
 CTRM
 vendor,
 providing
 the
 company
 access
 to

a
  variety
  of
  institutional
  investors
  and
  funding
  with
  which
  to
  continue
  to
  pursue
  strategic

acquisitions
  and
  further
  invest
  in
  its
  technology
  and
  products.
  Brady
  has
  been
  consistently

profitable
 and
 maintains
 a
 strong
 balance
 sheet.

Financial  Results  
Brady
 PLC
 is
 a
 public
 company
 listed
 on
 the
 London
 Stock
 Exchange’s
 AIM
 market
 and,
 as
 a
 result,

publishes
  its
  financial
  results
  for
  public
  review.
  Brady
  posted
  revenues
  of
  29.4m
  GBP
  in
  the
  2013

financial
 year,
 4%
 higher
 than
 2012
 revenues
 while
 EBITDA
 was
 down
 37%
 to
 3.7m
 GBP.

 Brady
 had

a
 strong
 sales
 year
 in
 2013
 with
 16
 new
 significant
 contracts,
 but
 £3.2mill
 of
 license
 revenue
 was

deferred
 due
 to
 their
 conservative
 revenue
 recognition
 policy.
 Recurring
 revenues
 are
 now
 57%
 of

Group
 revenues,
 up
 14%
 to
 16.6m
 GBP
 and
 the
 company
 finished
 the
 year
 with
 7.2m
 GBP
 of
 net

cash.
 The
 geographic
 make-­‐up
 of
 Brady’s
 revenues
 in
 2013
 were
 £21.2
 million
 in
 EMEA,
 £6.8
 million

in
 the
 Americas
 (following
 the
 first
 full
 year
 of
 contribution
 from
 Brady
 Recycling)
 and
 £1.4
 million

(2012
 -­‐
 £2.4
 million)
 in
 Asia.
 In-­‐line
 with
 the
 company’s
 stated
 strategy,
 revenues
 associated
 with

cloud
 delivery
 have
 grown
 year-­‐over-­‐year,
 providing
 an
 increasingly
 predictable
 revenue
 stream.

Product
 Set
 and
 Technology
 Base

Brady’s
  solutions
  are
  built
  on
  a
  service-­‐oriented
  architecture
  (SOA),
  using
  the
  latest
  industry

standard
  technologies.
  Brady’s
  Enterprise
  Services
  layer
  provides
  a
  framework
  of
  open
  and

extensible
  business,
  data
  and
  presentation
  services.
  These
  services
  are
  employed
  across
  Brady’s

solution
  set
  but
  can
  also
  be
  used
  to
  augment
  other
  third
  party
  solutions
  or
  to
  provide
  a

consolidated
  enterprise-­‐wide
  view
  of
  operations
  and
  risk.
  Brady’s
  solutions
  are
  also
  web
  enabled

allowing
 them
 to
 be
 deployed
 in
 the
 Cloud
 or
 traditionally
 on-­‐premises.

Brady
 is
 actively
 promoting
 its
  Cloud
 Services
 as
 they
 believe
 those
 services
 deliver
 much
 grea ter

flexibility
 and
 superior
 levels
 of
 security,
 compliance
 and
 availability,
 as
 well
 as
 allowing
 customers

to
  reduce
  total
  cost
  of
  ownership.
  Their
  Cloud
  Services
  are
  delivered
  using
  dedicated
  high

availability
 environments
 running
 in
 state-­‐of-­‐the-­‐art
 data
 centers.
 Its
 solutions
 and
 services
 can
 be

accessed
  securely
  via
  the
  internet
  or
  using
  other
  standard
  connectivity
  options,
  and
  have
  built
  in

redundancy
  and
  resilience
  to
  help
  ensure
  operational
  performance
  is
  maintained
  in
  the
  event
  of

hardware
 failure.
 From
 their
 Cloud,
 Brady
 can
 make
 available,
 almost
 immediately,
 everything
 from

a
 single
 service
 to
 a
 full
 product
 (comprised
 of
 many
 services).
 Integration
 with
 other
 solutions
 is

©
 Commodity
 Technology
 Advisory
 llc

At
 a
 Glance

Company
 Background

Founded:

CEO:

Offices:

Employees:

Website:

1985

Gavin
 Lavelle

UK

Norway

France

Switzerland

USA

Singapore

220
 (Est.)

bradyplc.com  

Products

Brady
 Energy
 –
 ETRM,
 logistics,
 data

management
 and
 cross-­‐border

settlement

Brady
 Commodities
 –
 Physical

trading
 risk
 and
 derivatives
 for

metals
 and
 mining,
 agricultural

and
 soft
 commodities

Brady
 Recycling
 –
 Trading
 and

processing
 for
 recycled
 metals

Market
 Profile
 (ComTech
 Est.)

Customers
 by
 Geography

Americas

EMEA

AsiaPac
 including
 Aust.

23%

72%

 5%

Customers
 by
 Market
 Segment

Commodity
 (metals,
 ags
 and
 softs)

Producers/Traders

42%

Energy
 Producers/Traders

46%

Recycling

12%

Financial
 Results
 –
 EOY
 2013

Revenue

EBITDA

$48
 M illion
 USD

 $6
 M illion
 USD

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