Brady Plc: investment case and AGM report

Friday, May 06 2011 by
13
Brady Plc investment case and AGM report

Since my last post on StollingMolby's thread, I decided to reinvest in Brady (LON:BRY) , the commodity trading software provider, in late 2010, yielding an average entry price at that time of 63p. Before reporting on the AGM, held on 28th April, here's why I decided to reinvest.

The Investment Case

As I commented on the above-referenced thread, I exited because the stock didn't look particularly cheap, based on current/forward P/Es. However, when tracking performance against Edison's forecasts I discovered an interesting phenomenon, as illustrated in the following table:

Y/E

2009


2010
Forecast Date
Revenue (£m) EPS (p) DPS (p)
Revenue (£m) EPS (p) DPS (p)









11/03/2009
7.60 3.70 1.30
8.60 4.40 1.40
13/07/2009
7.60 3.70 1.30
8.60 4.40 1.40
08/09/2009
7.60 3.70 1.30
8.60 4.40 1.40
19/01/2010
8.10 3.70 1.30
8.60 4.40 1.40
06/09/2010 a 8.20 4.80 1.30
10.40 4.60 1.40
29/11/2010




10.60 4.70 1.40
20/01/2011




10.70 4.70 1.40
14/03/2011



a 11.10 6.30 1.40


















 Y/E

2011


2012
Forecast Date
Revenue (£m) EPS (p) DPS (p)
Revenue (£m)

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Disclaimer:  

The author may hold shares in this company, all opinions are his own and you should check any statements that appear factual and not rely on them before making an investment decision. The author is NOT a qualified analyst nor authorised to give investment advice. Whilst the author is a director of ShareSoc, all views expressed are entirely his own and not necessarily those of ShareSoc.


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Brady plc is a United Kingdom-based provider of trading and risk management software to the global commodity and energy markets. The Company combines integrated and complete solutions supporting the commodity trading operation, from capture of financial and physical trading, through risk management, handling of physical operations, to back office financials and treasury settlement for energy, refined, unrefined and scrap metals, soft commodities and agriculture. The Company's business units are Commodities and Energy. Its clients include various financial institutions, trading companies, miners, refiners and producers, scrap processors, tier one banks, various London Metal Exchange (LME) Category 1, 2 clearing members, and other European energy generators, traders and consumers. It offers commodities solutions, energy solutions, credit risk, cloud services, and client services and support. more »

LSE Price
57.25p
Change
 
Mkt Cap (£m)
47.7
P/E (fwd)
27.8
Yield (fwd)
n/a



  Is LON:BRY fundamentally strong or weak? Find out More »


2 Comments on this Article show/hide all

Murakami 9th May '11 1 of 2
1

Just cross-referencing to the recent interview with Gavin Lavelle: http://www.stockopedia.com/content/gavin-lavelle-looks-to-turn-brady-into-a-vital-commodity-55119/

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marben100 10th May '11 2 of 2
1

Things  seem to be ticking along nicely, with practical acceptance of a system by Lugano based trading house BTI Bulk Trading announced today. So for the YTD, we have new contract wins with:

  • M3 Capital in Norway
  • Xstrata Copper Australia
  • One of the world's largest rice millers and marketers, in North America

And practical acceptance by:

  • Alcan Engineered Products, Switzerland
  • Norsk Hydro
  • TRE-FOR Energi, Denmark
  • BTI Bulk Trading

The year seems off to a good start. :0)

Mark

 

 

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About marben100

Marben100

I am a full-time private investor... with a little trading on the side (generally small-scale arbitrage in specialist niches). Previously, I spent 24 years in the IT industry, 13 of those running my own IT services firm. I invested as a "hobby" for 20 years before turning it into a full-time occupation in 2004. I really enjoy the "research" side of investing, finding out about varied businesses and industries and learning what makes them tick. Since going "full-time" I have learnt an awful lot from some very erudite investors & professionals who are kind enough to share their expertise in electronc forums such as this. I can now count a number of them as my friends, having had the opportunity to meet them in the real world, as well as this virtual one! I try to pay back the debt I owe by sharing what I've learnt and I always value constructive criticism to correct my errors and misapprehensions! I am a Director of ShareSoc, the UK organisation for individual shareholders. See below for details.     more »

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