Brady is the largest Europe-based E/CTRM player. It provides a range of transaction and risk management software applications, which help producers, consumers, financial institutions and trading companies manage their commodity transactions in a single, integrated solution.
In a brief AGM trading update, Brady said that trading to the end of April 2019 is in line with management’s expectations and the new sales pipeline is building. Our forecasts are unchanged. In FY18, revenue grew by 5% at constant currencies to £23.2m, which was a respectable performance given the focus was on account management rather than winning new clients. Carmen Carey took on the CEO role in February and we are expecting the results of her review of the business and new strategy to be outlined are the time of the interim results in September. The market opportunity is substantial and we believe Brady is well positioned to benefit from the significant sector consolidation.
Brady provides trading, risk and connectivity software solutions to the global commodity and energy markets – mining and oil companies, fabricators, traders, banks etc. The global E/CTRM market was worth c $1.65bn in 2016 (Comtech) and is forecast to grow at c 6% CAGR 2016–2020. Brady has a strong position in niche areas including commodity logistics, credit risk, metals (number one globally) and European energy, yet has a relatively modest market penetration overall (we estimate 1.2%).