Brady has released an encouraging trading update and provides an upbeat outlook with a sales pipeline that remains strong. The company says H1 trading has been in line with management’s expectations with profit margins bouncing back. As we noted in March, £2.2m of costs were cut across the business in H213, although the group has had to invest more in the Commodities unit to deliver new business wins. Today’s statement is an extension of the trend revealed in the April AGM trading statement, with the Energy unit rebuilding momentum and the Commodities unit focused on delivering the substantial new business signed in FY13. In our view, the shares continue to look attractive on c 12x our maintained cash-adjusted FY15 EPS if the group can continue the deal-signing momentum.

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