Activity remains brisk

Brady 16 September 2015 Update

Brady

Activity remains brisk

Interim results

Software & comp services

17 September 2015

Price

90.5p

Market cap

£75m

Net cash (£m) at 30 June 2015

6.2

Shares in issue

83.3m

Free float

77.8

Code

BRY

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(9.1)

(8.6)

14.2

Rel (local)

(3.5)

(1.0)

22.4

52-week high/low

109.5p

67.5p

Business description

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.

Next events

Customer Advisory Board – Europe & Asia (Copenhagen)

24-25 September 2015

Customer Advisory Board – Americas (Chicago)

7-8 October 2015

Trading update

January 2016

Final results

March 2016

Analysts

Richard Jeans

+44 (0)20 3077 5700

Dan Ridsdale

+44 (0)20 3077 5729

Brady is a research client of Edison Investment Research Limited

In H115, Brady signed two highly significant new contracts in its Commodities and Recycling divisions, while the Energy business unit continues to build momentum with six contracts signed. The company has also made a neat bolt-on in its Recycling unit, at a very attractive price. In light of falling commodity prices, Brady says it is not seeing any slowdown in its end markets, despite the economic backdrop. The group has 80% of FY15 revenues in the bag and a strong pipeline. Hence, we believe the stock looks attractive at c 12.5x our maintained cash-adjusted FY16 EPS.

Year
end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

12/13

29.4

2.5

2.8

1.7

32.3

1.9

12/14

31.0

5.1

5.3

1.9

17.1

2.1

12/15e

33.3

5.6

5.7

2.0

15.9

2.2

12/16e

35.6

6.4

6.3

2.1

14.4

2.3

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Interim results: Greater H2 weighting than normal

Group revenue slipped by 6% on a constant-currency basis to £14.1m, while adjusted operating profit fell by 78% to £0.5m. However, this is largely due to timing factors and bookings are higher than expected. Nine new significant contracts were signed in H1, including one with a leading global commodity company and another with the world’s largest recycling company as part of a global deployment. The Energy unit, which largely operates a rental model, continued to show growth. Net cash declined by £3.4m to £6.2m, reflecting the timing of invoicing and the £1.5m dividend payment. Net cash recovered to £7.5m as at the end of July.

Acquisition of ScrapRunner

Brady has acquired ScrapRunner for c $2m (c £1.3m) on an asset basis. ScrapRunner provides GPS tracking systems, designed specifically for the scrap metal/recycling industry. The price is attractive at c 7x FY16e operating profit.

Forecasts: Maintained, 80% of FY15 revenues in bag

We expect ScrapRunner to add c £0.4m revenues in the final four months of FY15, rising to £1.5m in FY16, with operating margins of 20%. We are conservatively assuming that the benefits from ScrapRunner are neutralised by adverse FX movements, including the Norwegian krone, which has fallen by c 9% since January.

Valuation: Growth supported by strong balance sheet

Brady trades on c 12.5x our cash-adjusted FY16 EPS, 1.8x EV/sales and c 9.1x EV/EBITDA. In our view, the valuation continues to look attractive relative to the peer group and we note that all the other major E/CTRM players have changed hands in recent years, eg Triple Point was sold in 2013 for 5x sales.

Interim results: Licence wins and strong pipeline

Nine new licences were signed in H1, while seven new clients went live (the group has more than 300 clients and 10,000+ users). The new clients demonstrate a broad diversity of asset classes and geographies. Group revenue slipped by 10%, or 6% on a constant-currency basis, to £14.1m, with FX movements responsible for £0.5m of the reduction. Traditional licence revenues fell by 20% to £2.9m. This reflects £0.2m backlog revenue recognised in the current period compared with £1.9m in the corresponding period, and also as revenue relating to H1 licence wins will largely be recognised in H2. Recurring fees (software rental, support and hosting services) eased by 2% to £7.8m, which continues to reflect the impact of the weak Norwegian krone on the Brady Energy software rental book. On a constant-currency basis, recurring fees grew by 2%, representing 55% of the group total, up from 51% a year earlier. Services revenues slipped by 16% (down 11% at constant currencies) to £3.4m, but the group expects a busy H2, as the new contracts are implemented.

Revenues in EMEA rose by 7% to £10.2m, largely reflecting the renewed momentum in the Energy business. Revenues in the Americas slipped 18% to £3.4m, though Brady is buoyant about the opportunities in the Americas in the Recycling and Commodities areas. Revenues in Asia dipped by 75% (£0.5m), although we note that the group has a strong pipeline in the Asia region. The gross margin improved from 64% to 65%, while operating costs rose by 13% to £8.7m, reflecting increased investment in marketing. Hence, the adjusted operating profit slipped by 79% to £0.5m, as the group operating margin fell to 3.4%.

Exhibit 1: Interims analysis

Half-by-half analysis

H114

H214

2014

H115

H215e

2015e

Software licence sales

3,589

3,952

7,541

2,871

4,929

7,800

Recurring fees (licence rental & maintenance)

7,933

7,915

15,848

7,799

9,429

17,228

Services fees (consulting and development)

4,082

3,544

7,626

3,436

4,800

8,236

Total Revenue

15,604

15,411

31,015

14,106

19,158

33,264

Gross profit

10,027

10,011

20,038

9,191

12,134

21,325

Selling and administrative expenses*

(7,670)

(7,349)

(15,019)

(8,705)

(7,078)

(15,783)

Adjusted operating profit

2,357

2,662

5,019

486

5,056

5,542

Operating Margin

15.1%

17.3%

16.2%

3.4%

26.4%

16.7%

Interest received

19

39

58

26

14

40

Edison Profit Before Tax (norm)

2,376

2,701

5,077

512

5,070

5,582

Share-based payments

(116)

(116)

(232)

(69)

(206)

(275)

Amortisation of acquired intangibles

(801)

(812)

(1,613)

(806)

(807)

(1,613)

Exceptional items

0

(2,143)

(2,143)

0

0

0

Profit before tax (FRS 3)

1,459

(370)

1,089

(363)

4,057

3,694

Source: Brady (historic numbers), Edison Investment Research (forecasts)

Divisional analysis: Brady Energy continues to rebuild momentum

Brady signed two particularly substantial deals with high-quality names, including one of the world’s largest commodity traders and the world’s leading metals recycling company. However, adjusted EBITDA (Edison definition, Exhibit 2) dipped by 79% to £0.8m, mainly since the group did not benefit as much from backlog revenue as it did in H114. We note that revenue recognition occurs on practical acceptance from the client, which can vary in time and adds to the lumpiness of traditional licencing deals.

Commodities this unit was formed through the merger of the group’s UK-based Metals business with its Geneva-based Physicals (mainly soft commodities) unit in 2013. Revenues dipped 14% (15% on constant currency basis) to £6.1m, while the contribution fell by 43% to £1.6m, to give a contribution margin of 27% (H114: 41%). The highlight was signing a leading global commodity company, which Brady won in conjunction with a major systems integrator. A significant slice of the licence component of the deal was recognised in H1, while the service component will be recognised in H2 and beyond. Brady’s solution will be used to support the organisation’s global trading and risk management of its physical and derivatives operations for its refined metals and concentrates businesses, in its worldwide locations across four continents. Brady won the contract in a competitive tender against one of the world’s top two commodity software suppliers. It succeeded as a result of the significant investment it has put into its CTRM product over the last two years – the group’s multi-commodity physical trading solution now handles refined ferrous, non-ferrous and precious metals, as well as concentrates, scrap and recycled metals. Separately, Hedge Manager, a cloud-based solution designed specifically for risk management in today's volatile commodity markets, went live with a major European aluminium producer.

Brady Energy – this unit’s customer base is predominantly Nordic utility companies that use the software for trading and hedging their electricity exposure, as well as other business processes. There is no exposure to petroleum and the business unit has been extending its customer base across Europe and into Africa. The business model in the Energy business unit is largely rental. Revenues slipped 7%, but rose 7% on a constant currency basis, to €. 5.6m, while the contribution margin jumped by 410bp to 16.8%. Six new contracts were signed in H1, including four new clients, and two migrations from legacy applications. A major regulatory change in the Nordic power market – Nordic Imbalance Settlement (NBS), will require the harmonisation of systems across the three Nordic countries. This provides a good near-term growth driver and Brady is developing the functionality for NBS with 24 clients participating in a beta project. There has been significant investment in functionality for the gas market through the delivery of additional product functionality for a major asset-backed trading client in Continental Europe. The division continues to advance its adoption of new technology, with both extensions to a web portal developed last year and deployed at a number of clients, and a new data warehouse module to provide additional and easily accessible data for management and/or web reporting.

Exhibit 2: Divisional breakdown and reconciliation of EBITDA definitions

H114

H115

H115

Revenues

Contribution

Margin

Revenues

Contribution

Margin

Revenues

Contribution

Margin

Constant exchange rates

Actual exchange rates

£000

’000

%

£000

£000

%

£000

£000

%

Commodities business unit

7,149

2,898

40.5

6,063

1,639

27.0

6,129

1,646

26.9

Energy business unit

5,964

757

12.7

6,375

1151

18.1

5,572

934

16.8

Recycling business unit

2,491

864

34.7

2,214

381

17.2

2,405

409

17.0

Group total

15,604

4,519

29.0

14,652

3,171

21.6

15,604

2,989

19.2

Amortisation of acq'd intangible assets

(801)

(806)

Central and shared costs

(2,278)

(2,572)

Operating profit before exceptionals

1,440

(389)

Add back:

Depreciation

297

279

Amortisation of capitalised development

478

488

Amortisation of acquired intangibles

801

806

EBITDA (Brady definition)

3,016

19.3

1,184

7.6

Deduct: amortisation of capitalised development

(478)

(488)

Add back: share-based payments

116

69

Adjusted EBITDA (Edison definition)

2,654

17.0

765

4.9

Source: Brady. Note: H115 data shown in both H114 (ie constant exchange rates) and H115 exchange rates.

Brady Recycling – revenues slipped 3%, or 11% on a constant currency basis, to £2.4m. The licence component of the contract win with Sims Metal Management has been included in the H1 numbers, while significant services revenues are expected in H2. In July, it was announced that Sims, the world’s largest recycling company, had selected Brady to further support the management of its global recycling operations. The roll-out begins in Australia, where a previous version of Brady’s software is being upgraded, and is likely to lead to the first sale of Brady Recycling software outside Brady Recycling’s core North American/Australasian regions. This decision fits with Sims global strategy to consolidate operations onto a single platform, to provide better visibility, optimize efficiencies and facilitate decision making across the Sims group, The Brady solution, backed by its team of experts in the recycling space, will assist and support its key strategic goals; to streamline, optimise and grow. Through the implementation of a global solution, Sims will benefit from having enterprise-wide visibility, timely actionable financial reporting, efficient management of positions and opportunities across the group, along with standardised operational and audit controls. On the development front, a mobile (PDA) based hand-held inspection device went live, with the aim to target over 1,000 client sites.

Acquisition of ScrapRunner

Brady has acquired ScrapRunner for c $2m (c £1.3m) on an asset basis, involving a $1.8m initial payment, $100k after one year and $100k after two years. ScrapRunner provides GPS tracking systems designed specifically for the scrap metal/recycling industry. Based in Jacksonville, Florida, ScrapRunner has six employees. Brady Recycling had partnered with ScrapRunner over a number of years, so it knows the business well. ScrapRunner generated revenue of $2m in FY14, of which 62% was recurring, with an operating profit of $694k (c 30% margin), indicating a price of less than 3x historical operating profit. However, Brady intends to invest significantly in marketing, which will pull margins back significantly in the short run. The aim is to market the product more aggressively with the c 1,600 recycling companies in North America, and creates an excellent cross-selling opportunity for Brady, enhancing its offerings, enabling it to sell larger deals. Historically, ScrapRunner operated a traditional licencing model, but it is now shifting to a SaaS model. While this is relatively small acquisition, it highlights the potential to create value through acquisitions.

Outlook: Bookings ahead of plan and several deals at advanced stage

While H1 numbers were below target, this related to timing issues and H1 sales were good in light of market conditions, with bookings ahead of plan. Overall, the group has 80% of FY15 revenues in the bag, meaning it needs to find c £6m of new business in H2 to make up the difference. The group has a strong pipeline, and several significant new licence opportunities are at an advanced stage. As is typical with an enterprise software vendor, Brady normally has a high level of activity in Q4, including from customers using their budgets to purchase additional licences. Also, given the high development spend in recent years, the group has more off-the-shelf software, which does not require further development, and can be sold with 30-day customer acceptance. Hence, sales of this software has faster revenue recognition.

While some customers in the commodities sector clearly are suffering from lower commodity prices, Brady is not seeing any significant slowdown in its markets. These businesses have a continued need to invest and maintain their IT systems. Further, while falling commodities prices hurt producers, they are beneficial to traders and manufacturers who also purchase the group’s software. Additionally, falling commodity prices can force producers to drive through efficiencies, which can involve them upgrading or replacing their in-house software with Brady’s software.

Exhibit 3: H115 revenue breakdown by type, region and business unit

Source: Brady

Forecasts: P&L maintained

We expect ScrapRunner to add c £0.4m revenues in the final four months of FY15, rising to £1.5m in FY16, with operating margins of 20%. We are conservatively assuming that the benefits from ScrapRunner are neutralised by FX movements, including the Norwegian krone, which has fallen by c 9% since January. Hence we are maintaining our P&L forecasts. We have added the $2m cost of ScrapRunner to the balance sheet, and amended for equity issuance and the dividend payment. We now forecast the group to end FY15 with net cash of £11.2m (previously £11.6m) which rises to £14.1m (£14.6m) a year later.

Exhibit 4: Forecasts

Revenue (£000s)

2011

2012

2013

2014

2015e

2016e

Licence revenues

3,394

6,357

4,031

7,541

7,800

8,138

Recurring fees (software rental, hosting and support)

9,790

14,491

16,629

15,848

17,228

18,798

Services and development

5,971

7,288

8,695

7,626

8,236

8,689

Group revenue

19,155

28,136

29,355

31,015

33,264

35,625

Growth (%)

72.3

46.9

4.3

5.7

7.3

7.1

Cost of sales (before dev cost capitalisation)

(10,047)

(11,466)

(12,333)

(11,850)

(12,819)

(13,394)

Capitalisation of development costs (net)

724

1,403

1,214

873

879

429

Gross profit

9,832

18,073

18,236

20,038

21,325

22,660

Gross margin (%)

51.3

64.2

62.1

64.6

64.1

63.6

Selling & administrative expenses

(6,591)

(13,149)

(15,766)

(15,019)

(15,783)

(16,367)

Adjusted operating profit

3,241

4,924

2,470

5,019

5,542

6,293

Operating profit margin (%)

16.9

17.5

8.4

16.2

16.7

17.7

Growth (%)

75.8

51.9

(49.8)

103.2

10.4

13.6

Net interest

68

64

29

58

40

80

Profit before tax (norm)

3,309

4,988

2,499

5,077

5,582

6,373

Amortisation of acquired intangibles

(616)

(1,276)

(1,613)

(1,613)

(1,613)

(1,613)

Share-based payments

(269)

(345)

(313)

(232)

(275)

(300)

Exceptional items

(326)

(2,563)

794

(2,011)

0

0

Profit before tax

2,098

804

1,367

1,221

3,694

4,460

Tax charge

(162)

(345)

(250)

(762)

(837)

(1,115)

Profit after tax

1,936

459

1,117

459

2,856

3,345

Adjusted EPS (p)

5.8

6.1

2.8

5.3

5.7

6.3

P/E – adjusted EPS (x)

15.6

14.7

32.6

17.1

15.7

14.4

Source: Brady (historic numbers), Edison Investment Research (forecasts)

Valuation: Unique asset, peer M&A continues

The major commodity software sector deals executed at high EV/sales multiples in late 2011 and mid-2013 remain a focal point. These deals highlight the popularity of the commodity software space, particularly from private equity, and Brady remains the only quoted asset in the sector. Though we note that FIS is acquiring SunGard, which has a relatively small exposure to commodities, relative to its size.

Brady has been signing and delivering significantly larger licence agreements and expanding its customer base of high-quality, blue-chip names. This provides strong references, and creates the momentum for further deals. Having already signed a $5m contract, Brady expects deal sizes to continue to rise, with a $10m deal achievable within the next few years.

We highlight the following points on the group’s valuation:

Traditional P/E valuation – the stock trades on 15.1x our FY15 earnings forecasts, falling to 14.4x in FY16. These multiples are well below Brady’s peers (see Exhibit 6). Nevertheless, these figures are also affected by the cash balances currently subject to low interest rates. Adjusted for the net cash (adjusted for outstanding acquisition liabilities and cash flow seasonality), we estimate the ratings are 13.6x and 12.5x respectively.

Cash flow – operating cash flow jumped to record levels in FY14, but cash flows are traditionally weaker in H1, exacerbated by the annual dividend payment. We forecast £3.6m free cash flow in FY15 rising to £4.6m in FY16, providing free cash flow yields of 4.8% and 6.0% respectively.

Exhibit 5: Cash flow

(£000)

FY09

FY10

FY11

FY12

FY13

FY14

H115

H215e

FY15e

FY16e

Adjusted operating profit

1,297

1,844

3,241

4,924

2,470

5,019

486

5,056

5,542

6,293

Depreciation

174

278

412

516

652

573

279

380

659

705

Working capital

(450)

(22)

(641)

(1,966)

69

(629)

(2,235)

1,902

(333)

(356)

Amortisation of dev’t costs

30

111

314

544

731

928

488

978

1,466

1,815

Exceptional costs/misc

(127)

(1,045)

(490)

(2,559)

355

318

0

0

0

0

Operating cash flow

924

1,166

3,000

1,459

4,277

6,209

(982)

8,315

7,333

8,458

Net interest

45

19

68

64

29

58

26

14

40

80

Tax paid

(585)

644

(161)

(168)

(378)

(420)

0

(670)

(670)

(892)

Purchase fixed assets

(179)

(306)

(657)

(427)

(497)

(618)

(252)

(480)

(732)

(784)

Capitalised development

(391)

(598)

(1,038)

(1,947)

(1,945)

(1,801)

(1,093)

(1,252)

(2,345)

(2,244)

Free cash flow

(186)

925

1,212

(1,019)

1,486

3,428

(2,301)

5,928

3,627

4,617

Source: Brady (historicals), Edison Investment Research (forecasts)

Peer comparison – the stock trades on 1.8x FY16 revenues and c 9.1x EV/EBITDA. Both measures are attractive relative to the stock’s peers.

Exhibit 6: Peers

Local

Share

Market cap

EV/sales

EV/EBITDA

PE

currency

Price

Millions

Year 1

Year 2

Year 1

Year 2

Year 1

Year 2

Brady

GBP

90.50

75

1.9

1.8

10.3

9.1

15.7

14.4

1) UK-quoted financial software peers

Fidessa

GBP

1830.00

700

2.2

2.1

10.7

10.1

23.7

22.3

First Derivatives

GBP

1312.50

308

3.1

2.7

15.5

13.5

26.3

22.8

Microgen

GBP

102.50

60

1.8

1.8

7.1

6.8

12.7

11.8

StatPro

GBP

70.00

47

1.6

1.5

12.8

11.0

29.2

25.0

Lombard Risk

GBP

12.38

38

1.5

N/A

5.4

N/A

8.8

N/A

Medians (excl Lombard)

2.0

2.0

11.8

10.6

25.0

22.6

2) Selection of financial software peers quoted in other countries

Broadridge

USD

54.43

6438

2.3

2.2

10.9

10.1

20.0

18.2

FIS

USD

70.04

19722

3.7

3.1

12.4

10.1

21.2

18.3

GBST

AUD

4.85

323

2.5

2.3

12.0

10.8

18.0

15.7

Iress

AUD

9.11

1458

4.5

4.1

14.6

12.9

22.1

19.2

Linedata

EUR

29.04

214

1.5

1.5

5.9

5.7

12.0

11.4

SimCorp

DKK

340.50

14131

6.8

6.2

23.5

21.1

33.1

28.5

SS&C

USD

70.95

7052

6.5

4.8

15.6

11.3

27.7

23.1

Medians

3.7

3.1

12.4

10.8

21.2

18.3

Source: Bloomberg, Edison Investment Research. Note: We have used Edison forecasts for Brady and StatPro and Bloomberg consensus data for the other companies. Prices as at 16 September 2015.

Sector M&A – all of the group’s key competitors, apart from SunGard, were involved in sector deals in 2011, with Openlink acquired by Hellman & Friedman, Solarc purchased by Openlink and Triple Point acquired by Welsh, Carson, Anderson & Stowe. The suggestion from the market was that these deals were transacted at multiples in the region of 3.3-4.6x sales. Triple Point was acquired again in mid-2013 by ION for $900m, or 5x FY12 sales and 15x operating income. ION also acquired FFastFill, an AIM-quoted derivative trading software-as-a-service (SaaS) company in February 2013, for c £98m or c 3.8x FY14 sales, c 26x operating profits and c 25x earnings. These deals make Brady, trading on 1.8x FY16e revenues, look undervalued. In August 2015, it was announced that FIS would acquire SunGard for $9.1bn (enterprise value), which we estimate values SunGard at c 3.3x FY14 revenues and c 12x EBITDA. Separately, India-based EKA Software Solutions received a significant investment from Silver Lake Partners in October 2013.

Acquisitions – further deals could create additional value for shareholders if Brady is able to cross-sell the acquired applications to its existing customer base.

Exhibit 7: Financial summary

£000s

2011

2012

2013

2014

2015e

2016e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

19,155

28,136

29,355

31,015

33,264

35,625

Cost of Sales

(9,323)

(10,063)

(11,119)

(10,977)

(11,939)

(12,965)

Gross Profit

9,832

18,073

18,236

20,038

21,325

22,660

EBITDA

 

 

3,653

5,440

3,122

5,592

6,200

6,999

Adjusted Operating Profit

 

 

3,241

4,924

2,470

5,019

5,542

6,293

Amortisation of acquired intangibles

(616)

(1,276)

(1,613)

(1,613)

(1,613)

(1,613)

Exceptionals items

(326)

(2,563)

355

(2,143)

0

0

Share based payments

(269)

(345)

(313)

(232)

(275)

(300)

Operating Profit

2,030

740

899

1,031

3,654

4,380

Net Interest

68

64

29

58

40

80

Profit Before Tax (norm)

 

 

3,309

4,988

2,499

5,077

5,582

6,373

Profit Before Tax (FRS 3)

 

 

2,098

804

928

1,089

3,694

4,460

Tax

(162)

(345)

189

(630)

(837)

(1,115)

Profit After Tax (norm)

3,147

4,643

2,249

4,315

4,744

5,258

Profit After Tax (FRS 3)

1,936

459

1,117

459

2,856

3,345

Average Number of Shares Outstanding (m)

54.2

75.6

80.9

81.3

82.5

83.6

EPS – normalised (p)

 

 

5.8

6.1

2.8

5.3

5.7

6.3

EPS – FRS 3 (p)

 

 

3.6

0.6

1.4

0.6

3.5

4.0

Dividend per share (p)

1.50

1.60

1.70

1.85

1.95

2.10

Gross Margin (%)

51.3

64.2

62.1

64.6

64.1

63.6

EBITDA Margin (%)

19.1

19.3

10.6

18.0

18.6

19.6

Adjusted Operating Margin (%)

16.9

17.5

8.4

16.2

16.7

17.7

BALANCE SHEET

Fixed Assets

 

 

16,859

42,851

39,137

32,614

34,730

35,440

Intangible Assets

16,002

40,999

37,519

30,996

31,573

30,389

Tangible Assets

857

1,158

983

1,076

2,615

4,509

Deferred tax

0

694

635

542

542

542

Current Assets

 

 

15,513

16,874

15,420

16,948

18,891

22,096

Stocks

0

0

0

0

0

0

Debtors

5,209

9,036

8,198

7,368

7,698

8,041

Cash

10,304

7,838

7,222

9,580

11,193

14,055

Current Liabilities

 

 

(6,283)

(11,401)

(11,200)

(10,545)

(10,724)

(10,706)

Creditors

(6,283)

(11,401)

(11,200)

(10,545)

(10,724)

(10,706)

Short-term borrowings

0

0

0

0

0

0

Long-Term Liabilities

 

 

(2,138)

(6,717)

(4,467)

(4,651)

(4,651)

(4,651)

Long-term borrowings

0

0

0

0

0

0

Other long-term liabilities

(2,138)

(6,717)

(4,467)

(4,651)

(4,651)

(4,651)

Net Assets

 

 

23,951

41,607

38,890

34,366

38,247

42,178

CASH FLOW

Operating Cash Flow

 

 

3,000

1,459

4,277

6,209

7,333

8,458

Net Interest

68

64

29

58

40

80

Tax

(161)

(168)

(378)

(420)

(670)

(892)

Capex

(1,695)

(2,374)

(2,442)

(2,419)

(3,077)

(3,028)

Acquisitions/disposals

(1,853)

(17,983)

(751)

0

(1,180)

(66)

Financing

188

17,780

125

338

691

0

Dividends

(759)

(1,206)

(1,296)

(1,378)

(1,525)

(1,690)

Net Cash Flow

(1,212)

(2,428)

(436)

2,388

1,613

2,862

Opening net debt/(cash)

 

 

(11,614)

(10,304)

(7,838)

(7,222)

(9,580)

(11,193)

Other

(98)

(38)

(180)

(30)

()

()

Closing net debt/(cash)

 

 

(10,304)

(7,838)

(7,222)

(9,580)

(11,193)

(14,055)

Source: Brady (historicals), Edison Investment Research (forecasts)

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