Good morning.

This morning's bombshell is a 51% crash in the share price of software company Brady (LON:BRY) . For whatever reason, the company issued a trading update at 5:47pm yesterday. Since the market closes at 4:30pm, and even allowing for 5 minutes after that for the closure process to occur, there seems little point in issuing an update after that. People just assume that it's being slipped out after hours, in the hope that the damage might be limited. The normal time to issue updates is at 7:00am.

This is why it's important to use an email service to send you every RNS from companies you hold or follow, as otherwise it's easy to miss ones that are put out at silly times, like this one:


Brady (LON:BRY)

Share price: 37p (down 52%)
No. shares: 83.0m
Market cap: £30.7m

Trading update - this is a software company, selling trading & risk management software to commodity and energy markets. Given the sector in which it operates, it was really only a matter of time before it issued a profit warning. That's not just hindsight, but it was pretty much the conclusion I came to, when reporting on their lousy interims, and unrealistically upbeat outlook here on 7 Sep 2015. It's yet another example of a company saying everything is fine, we'll recoup the shortfall in H2, and then failing to do so.

Here is the detail of last night's statement;

In our September update, we reported a healthy sales pipeline that more than covered the sales needed to complete the full year in line with market expectations.  Whilst some of those opportunities have been converted into contract wins, including 5 cloud deals, we have seen a prolongation of the time required to convert the pipeline into the sales that we anticipated. Whilst most of the opportunities that were there in September are still good prospects, they will not be converted into sales in this financial year.   As a result, revenues and EBITDA for the financial year ended 31 December 2015 will be materially below market expectations.

 The Group's balance sheet remains healthy with cash in excess of £4 million and no debt. The Board has initiated a cost reduction exercise of £1.7million to improve profitability in 2016 over 2015.

My first reaction is that the business…

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