The company warned last month that a pipeline of revenue from new customers would not materialise during the year as had been previously forecast and told shareholders today that the inability to get many potential contract wins over the line and the loss of some existing customers to competitors had prompted the company to take a long hard look at its business practices.
The review has triggered a programme of work “designed to bring a fresh and objective perspective of our current state and inform a plan to enable Brady to demonstrate our leadership in the E/CTRM [energy/commodity trade risk management software] market”, the company said.
Results for the first half of the year saw revenue ease to £9.55mln from £10.54mln the year before, while recurring revenue remained steady at £7.79mln (2018:£7.80mln).
As indicated last month, full-year revenues are expected to be around £19mln.
Adjusted underlying earnings (EBITDA) after exceptional items widened to £1.32mln from £423,000 the previous year.
The loss before tax was £3.5mln, compared to a loss of £2.3mln in the first half of last year.
The company said net debt at the end of 2019 will continue to be in line with market expectations; however, the company will require access before the end of next month to a modest level of additional working capital to support the company's existing operations.
Brady is currently advancing a number of financing options to provide increased working capital to meet the group's short-term liquidity requirements and to underpin its strategic plan, with indications of support to date from two major shareholders, if required.
Despite the disappointing nature of the first-half performance, Brady said recent market consolidation has created an inflexion point for an E/CTRM vendor of size, scale and capability to emerge as the leading independent trading and risk management vendor.
Chief executive officer, Carmen Carey, who joined in February, said the company's core strengths and new strategy, coupled with the plan to redress the challenges the company has experienced, ensure Brady is well-positioned to capitalise on “this very significant market leadership opportunity”.
Carey aid the new strategy “is focused on nurturing our customers, improving execution fundamentals, expanding our reach and ensuring we secure our market leadership position during this exciting time in the trading and risk management industry”.
“With this new strategy and a new and experienced board in place, we believe we are well-positioned to deliver a scalable, predictable and sustainable business," Carey said.
Brady PLC determined to demonstrate leadership in its market