Brady Announces Early 2011 Results
Brady Plc is the only publicly held CTRM vendor in the space. Being public, and therefore being required to report their financial results, the company provides some unique insights into the health of the CTRM market, especially in their core market area of Europe.
According to their press release of January 16th, the company saw a 70% year-over-year growth in revenues in 2011, including increases in recurring revenue (revenues from support & maintenance, license “rentals”, etc) of 145%, which represents about 52% of their total 2011 revenues. Recurring revenues in 2010 were only 36% of total revenues. They noted that they had secured 14 “substantial” new license sales in 2011, versus 10 in 2010.
Brady indicates that after a final accounting, they expect to report EBITDA growth of around 70%, which is in-line with the market’s forecast for the company. Additionally, Brady highlighted the fact that they have more than £10 million on hand (more than $16 million) with no outstanding debt. This could be very significant as the company continues to seek out potential acquisition targets. As you might remember, Brady had acquired Viz Risk Management in late 2010.
When the company’s final results for 2011 are announced in early March, we anticipate their revenue numbers will continue to show that they are well positioned in the ranks of the top CTRM vendors. In fact, with the recent acquisition of Solarc by OpenLink, we now rank Brady as the fifth largest CTRM solution provider in the world based upon total revenue. Additionally, based upon their reported growth numbers, we believe that they are certainly keeping pace with, and in some cases exceeding, their peer group.
All in all, very impressive results that speak well for Brady and also provide a good indicator that the market for CTRM solutions in Europe continues to be robust.
