London listed Brulines Group (BRU) announced today a partnership with Greene King Pub Partners for the roll out of its real time monitoring systems for Greene’s 1,400 pubs throughout the United Kingdom beginning first quarter 2010.
Brulines is the market leader in monitoring systems for liquid dispensation volumes at licensed premises. The company’s systems have so far been installed at over 22,000 sites.
Based on annual volumes during 2008, Brulines’ average annual revenue per site is around £776. The new deal with Greene has therefore the potential for well over £1m of additional revenues for Brulines. At 28% operating profit margin the income from the deal will be tangible.
Brulines reported revenues of £19.1 million in financial year ending 31 March 2009 (£17.1 million 31 March 2008). Diluted earnings per share in 2009 came to 13.1 pence (11.5p in 2008). There was £7.7m of cash on the balance sheet and £3.4m of borrowings (£420k of this being current).
Net cash from operations in financial 2009 came to £2.8m and Capital expenditure in the period was £1.3m.
With return on equity double the industry average and 79% of revenue being recurring, the company’s share price recovery since mid-spring appears well justified.
AXA Framlington is the largest shareholder, with 15.3% of equity.