A record number of licensing deals have helped Cambridge UK risk software business Brady plc boost first half revenues by over 30 per cent.CEO Gavin Lavelle reports a robust business pipeline for the second half and says momentum for the Cambridge Science Park company continues to grow.
Brady supplies trading, risk management and settlement solutions to the energy, metals and soft commodities sectors.
The company reported significant progress on all fronts globally in a trading update for the first half to June 30.
It expects to announce its official interim results on September 10.
The group achieved revenue growth of more than 30 per cent for the first six months of 2012 compared to the same period in 2011 and says trading is in line with the board’s expectations for the full year.
Lavelle said the group had signed eight significant new licence deals in the period – a record number of deals for a first half year – compared to six for the same period in 2011 and 14 for the whole of 2011.
The average deal size has more than doubled compared to the same period in 2011 and one deal included a sale of Brady’s new cloud based solution to a significant South American mining company.
Acquisitions of Navita and syseca were completed in the first quarter and have already been successfully integrated into the enlarged Brady Energy business, with a clear strategic direction and operational and financial goals, the company says.
Lavelle said the Brady Energy business was performing ahead of management expectations and haf contributed three of the eight significant new licence deals, one involving cross-selling of a newly acquired solution into an existing Brady customer.
The group’s recurring revenues increased by some 40 per cent compared to the same period in 2011, representing around 56 per cent of total revenues compared to 54 per cent for the same period in 2011.
Brady has also continued what it calls “its significant investment programme in its solution offering, routes to market and infrastructure in order to deliver and support further anticipated growth.”
The group continues to enjoy a strong cash position with net cash of approximately £7.9 million and no debt at June 30, increasing to £9.3 million and no debt at July 13.
Lavelle said: “I am pleased to see continued success from our strategy of gaining scale through organic and inorganic growth. We have a comprehensive suite of solutions, stronger geographic reach, further validating the market perception of Brady as a key strategic supplier.
“Despite the challenging macro-economic conditions, we have continued to focus on market growth drivers with our 250 clients and have consequently shown sustained growth. We are encouraged by our robust business pipeline for the second half.
“Brady is now independently ranked as the largest Energy and Commodity Trading and Risk Management company headquartered in Europe, the largest in metals globally, the fourth largest ECTRM provider globally with the largest energy install base in Europe.
“We have made a solid start to the year and I am pleased to see momentum continuing to grow. We anticipate a very busy second half year and look to the future with confidence.”