$BRY.L – Brady – an anecdote apropros of nothing

BRY (Brady), developers of trading software for commodities traders, issued an RNS in after-hours trading, causing the shares to drop 51% to 38p in this morning’s trading.

An after-hours update was a bit cheeky. The company notes: “Over the last month or so market conditions have materially deteriorated in the commodity sector in which Brady’s clients operate. Several of the major commodity trading companies have reported deteriorating trading conditions, issued profit warnings alongside announcements of cost cutting or restructuring measures. The net result of this for our business is that customers and new prospects are lengthening buying cycles.”

Let me tell you a story. In 1999, if memory serves, I started as a programmer for IQ Financial, a company that developed trading software. They had been ramping up their staff levels in order to make a big sale. The day I joined, I seem to recall that 5 salesman left the company. Oh! That didn’t sound good. A few weeks later I heard that they failed to make the sales they were anticipating, and that there would be big staff cutbacks.

Last in, first out, i.e. me and some other people.

We shared a building with a division of the FT. It wasn’t big, it was just some division, I don’t remember its purpose. It was not far off a Northern Line tube station. Moorgate, perhaps? It might have been Warren Street, or Goodge Street.

I don’t know what happened to IQ Financial. Maybe it exists in some other form. It was connected with Rolfe & Nolan, which was a very highly respected company.

Anyway, it’s just an anecdote. I was in at the top of the bull market, and the whole thing collapsed. We’re hardly at the top of the bull market for commodities, though.

BRY’s RNS said that “new prospects are lengthening buying cycles”. I would suggest that what that actually means is “we’re screwed”.

Best of luck with the falling knives.

38p

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About mcturra2000

Computer programmer living in Scotland.
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