Brady earnings impacted by lower-than-expected revenues

Risk management software provider Brady said on Wednesday that it now expects full-year underlying earnings to come in lower than previously forecast due to a drop in revenues.

Over the six months ended 30 June, Brady said it had had "positive engagements with existing customers", with recurring revenues in line with expectations.

However, the company's expected pipeline of revenues from new customers will not materialise this year despite new business bookings being anticipated in the second half. As a result, the group warned that full-year revenues were set to be around £19m, impacting its EBITDA performance.

The AIM-listed firm said its turnaround since the appointment of Carmen Carey as chief executive had continued to build momentum, focused on customer engagements, delivering major contracts and maturing the new business pipeline.

In addition, Brady's strategic product review has been concluded, helping the business to "align, optimise and advance" its product portfolio and conclude transformational work underway when Carey joined.

At 0925 BST, Brady shares were down 40% at 34p.