Sep 10th 2013 - Edison Investment Research today published a report on Brady (BRY.L, LSE:BRY, LON:BRY) entitled "Record Pipeline Includes Three Large Deals". In summary, the report says:
Brady reported H1 revenues (up 23% to £14.9m), in line with the trading update in July, while EBITDA slipped 24% to £1.4m. Management has removed £2.2m from the cost base since the period end. The group’s pipeline is at record levels, including three very substantial deals, which are potentially transformational, but have taken longer to negotiate than expected. While we are cutting our revenue forecasts, our FY14 EPS is maintained, supported by the streamlined cost base and anticipated licence revenues from the three large deals. In the wake of the c 16% fall on Monday, the stock looks attractive, trading on c 8x our cash-adjusted FY14 EPS, given the favourable industry growth drivers.
Edison Investment Research is a leading international investment research company. It has won industry recognition, with awards both in the UK and internationally. The team of 95 includes over 60 analysts supported by a department of supervisory analysts, editors and assistants. Edison writes on more than 400 companies across every sector and works directly with corporates, fund managers, investment banks, brokers and other advisers. Edison’s research is read by institutional investors, alternative funds and wealth managers in more than 100 countries. Edison, founded in 2003, has offices in London, New York and Sydney and is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584). more »