Company registration number: 04201763
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2025
Brady Corporation Limited is a manufacturer and supplier of identification solutions, specialty materials, and workplace safety products that identify and protect premises, products and people. The ability to provide customers with a broad range of proprietary, customised, and diverse products for use in various applications, along with a commitment to quality and service, and multiple sales channels, have made Brady a world leader in many of its markets. Brady Corporation Limited is owned by B.I. (UK) Limited.
The Company’s primary objective is to build upon its market position and increase shareholder value by improving the following key competencies:
∙Operational excellence - Continuous productivity improvement, automation, and product customisation capabilities.
∙Customer service - Understanding customer needs and providing a high level of customer service.
∙Innovative products - Technologically-advanced, internally-developed proprietary products that drive revenue growth and sustain gross profit margins.
∙Global leadership position in niche markets.
∙Digital capabilities.
∙Compliance expertise.
The long-term sales growth and profitability of our segments will depend not only on improved demand in end markets and the overall economic environment, but also on our ability to continuously improve the efficiency of our global operations, deliver a high level of customer service, develop and market innovative new products, and to advance our digital capabilities.
The Company is organised and managed on a global basis within two business segments: Up until February FY23 these segments were recognised as Identification Solutions (“ID Solutions” or “IDS”) and Workplace Safety (“WPS”). During the year, the business transitioned to a One Brady business model and these segments are now identified as Manufactured, including Brady UK, Scafftag and BIG brands and Niche Distribution, including Seton UK, Safetyshop and Signs and Labels brands.
The manufactured segment manufacture differentiated, proprietary products, most of which have been internally developed. These internally developed products include materials, printing systems, and software. manufactured compete for business on several factors, including customer service, product innovation, breadth of product offering, product quality, price, expertise, production capabilities, and for multinational customers, our global footprint. Competition is highly fragmented, ranging from smaller companies offering minimal product variety, to some of the world's largest adhesive and electrical product companies offering competing products as part of their overall product lines.
Manufactured serves customers in many industries, which include industrial manufacturing, electronic manufacturing, healthcare, chemical, oil, gas, automotive, aerospace, governments, mass transit, electrical contractors, education, leisure and entertainment and telecommunications, among others.
Within the ID Solutions segment, the primary product categories include:
∙Facility safety and identification and protection, which includes safety signs, floor-marking tape, pipe markers, labelling systems, spill control products, lockout/tagout devices, and software and services for safety compliance auditing, procedure writing and training.
∙Product identification, which includes materials, printing systems, RFID and bar code scanners for product identification, brand protection labelling, work in process labelling, and finished product identification.
∙Wire identification, which includes hand-held printers, wire markers, sleeves, and tags.
∙People identification, which includes name tags, badges, lanyards, rigid-card printing systems, and access control software.
∙Patient identification, which includes wristbands and labels used in hospitals for tracking and improving the safety of patients.
Products within the Niche distribution segment are sold under a variety of brands including: Seton, SafetyShop and Signs & Labels.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
The Niche distribution segment manufactures a broad range of stock and custom identification products, and also sells a broad range of related resale products. Historically, both the Company and many of our competitors focused their businesses on catalogue marketing, often with varying product niches. Many of our competitors extensively utilise e-commerce to promote the sale of their products. A consequence of e-commerce is price transparency, as prices on non proprietary products can be easily compared. Therefore, to compete effectively, we continue to build out our e-commerce capabilities and focus on developing unique or customised solutions, enhancing the customer experience, and providing compliance expertise as these are critical to retain existing customers and convert new customers. Niche distribution primarily sells to businesses and serves many industries, including manufacturers, process industries, government, education, construction, and utilities.
Within the Niche distribution segment, the primary product categories include:
∙Safety and compliance signs, tags, labels, and markings
∙Informational signage and markings
∙Asset tracking labels
∙Facility safety and personal protection equipment
∙First-aid products
∙Material handling
∙Fire Safety
∙Law and other compliance posters
∙Janitorial & Hygiene products
Below is a summary of sales by the two segments for the fiscal years ended 31 July:
2025 2024
Niche Distribution 50.8% 52.9%
Manufactured 49.2% 47.1%
The long term sales growth and profitability of our segments will depend not only on improved demand in end markets and the overall economic environment, but also on our ability to continuously improve operational excellence, focus on the customer, develop and market innovative new products, and to advance our digital capabilities. In our Manufactured business, our strategy for growth includes an increased focus on certain industries and products, a focus on improving the customer buying experience, and investment in research and development ("R&D") to develop new products. In our Niche Distribution business, our strategy for growth includes a focus on workplace safety critical industries, innovative new product offerings, compliance expertise, customisation expertise, and improving our digital capabilities.
The following were key initiatives supporting the strategy in fiscal year 2025:
∙Investing in organic growth by enhancing our research and development process and improving the time to launch high-value, innovative products in alignment with our target markets.
∙Providing our customers with the highest level of customer service.
∙Expanding and enhancing our sales capabilities through an improved digital presence.
∙Driving operational excellence, investment in digital printing technology and phase out of screen printing. Executing sustainable efficiency gains within our global operations and selling, general and administrative structures.
∙Growing through focused actions in selected vertical markets and strategic accounts.
∙Sku rationalisation, to align with our Niche differentiation and improve product profitability.
∙Enhancing our employee development process to create an engaged diverse workforce and to attract and retain key talent.
∙One Brady cross brand opportunities.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
Business review and key performance indicators
In the fiscal year 2025, the Company posted total sales of £41,703k (2024 - £44,355k) and a profit before taxation of £4,525k (2024 - £4,893k).
Overall, we have experienced £2.7m, 5.9% decrease in sales for the year ending 31 July 2025. Sales volumes were helped by growth in our focus markets, telecom, datacom, electrical wholesale, warehouse and distribution, lab and aerospace. Top line was impacted by product rationalization, some large non repeats and market conditions.
Total Gross margin reduced to £19,144k in fiscal 2025 as compared to £19,874k in fiscal year 2024. As a percentage of sales, gross margin increased to 45.9% in the fiscal year 2025 from 44.7% in the fiscal year 2024. The fiscal year 2025 operating profit was £3,893k compared to £4,255k in the prior fiscal year. The decrease of £362k in operating profitability was a result of sales reduction.
The Company had net assets totalling £37,437k (2024 - £52,871k) and net current assets totalling £20,516k (2024 -£37,542k) at the year end and remains well placed to meet its liabilities as they fall due.
Competitive pressure in the UK is an ongoing risk, which the Company manages by continually looking to differentiate its product offering in terms of quality and applications and by providing the highest levels of customer service. The Company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of cash flows.
The majority of the Company’s business is within the UK and it has little foreign exchange exposure. The Company’s operating facilities could be disrupted for reasons beyond the Company’s control such as fire or other issues and as such the Company has in place a Business Recovery Plan to cover most likely scenarios.
A more detailed review of the risks and uncertainties below;
Failure to compete effectively or remain competitive may have a negative impact on our business, sales, and results of operations, cash flow and liquidity.
We actively compete with companies that produce and market the same or similar products, and in some instances, with companies that sell different products that are designed for the same end user. Competition may force us to reduce prices or incur additional costs to remain competitive in an environment in which business models are changing rapidly. We compete on the basis of several factors, including customer support, product innovation, product offering, product quality, price, expertise, digital capabilities, production capabilities, and for multinational customers, our global footprint. Present or future competitors may develop and introduce new and enhanced products, offer products based on alternative technologies and processes, accept lower profit, have greater financial, technical or other resources, or have lower production costs or other pricing advantages. Any of these could put us at a disadvantage by threatening our share of sales or reducing our profit margins, which could adversely impact our business and financial results.
Additionally, throughout our global business, distributors and customers may seek lower cost sourcing opportunities, which could result in a loss of business that may adversely impact our business and financial results.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
Our strategy is to expand into higher-growth adjacent product categories and markets with technologically advanced new products, as well as to grow our sales generated through the digital channel. While traditional direct marketing channels such as catalogues are an important means of selling our products, an increasing number of customers are purchasing products on the internet. Our strategy to increase sales through the digital channel is an investment in our internet sales capabilities. There is a risk that we may not continue to successfully implement this strategy, or if successfully implemented, we may not realise its expected benefits due to the continued levels of increased competition and pricing pressure brought about by the internet. Our failure to successfully implement our strategy could adversely impact our business and financial results.
Demand for our products may be adversely affected by numerous factors, some of which we cannot predict or control. This could adversely affect our sales, results of operations, cash flow and liquidity.
Numerous factors may affect the demand for our products, including:
∙Deterioration of economic conditions of major markets served
∙Consolidation in the marketplace, allowing competitors and customers to be more efficient and more price competitive
∙New competitors entering the marketplace
∙Decreasing product life cycles
∙Changes in customer preferences
∙Ability to achieve strong operational performance, including the manufacture and sale of high-quality products and the ability to meet customer delivery expectations.
We are a party to litigation that arises in the normal course of our business operations, including product liability and recall (strict liability and negligence) claims, patent and trademark matters, contract disputes and environmental, employment and other litigation matters. We face an inherent business risk of exposure to product liability claims in the event that the use of our products is alleged to have resulted in injury or other damage. In addition, we face an inherent risk that our competitors will allege that aspects of our products infringe their intellectual property or that our intellectual property is invalid, such that we could be prevented from manufacturing and selling our products or prevented from stopping others from manufacturing and selling competing products. To date, we have not incurred material costs related to these types of claims. However, while we currently maintain insurance coverage for certain types of claims that we believe is adequate, we cannot be certain that we will be able to maintain this insurance on acceptable terms or that this insurance will provide sufficient coverage against potential liabilities that may arise. Any claims brought against us, with or without merit, may have an adverse effect on our business, financial results and reputation as a result of potential adverse outcomes. The expenses associated with defending such claims and the diversion of our management’s resources and time may have an adverse effect on our business and financial results.
If any of these factors occur, the demand for our products could suffer, and this could adversely impact our business and financial results.
Development of technologically advanced new products is targeted as a driver of our organic growth and profitability. Technology is changing rapidly and our competitors are innovating quickly. If we do not keep pace with developing technologically advanced products, we risk product commoditisation, deterioration of the value of our brand, and reduced ability to effectively compete. We must continue to develop innovative products, as well as acquire and retain the necessary intellectual property rights in these products. If we fail to innovate, or we launch products with quality problems, or if customers do not accept our products, then our business and financial results could be adversely affected.
A large customer loss could significantly affect sales, results of operations, cash flow, and liquidity. While we have a broad customer base and no individual customer represents 6% or more of total sales, our dependence on these customers makes relationships with them important; however, we cannot guarantee that these relationships will be retained in the future. Also, where we have larger customers, they may possess a greater capacity to negotiate reduced prices. If we are unable to provide products to our customers at the quality and prices acceptable to them, some of our customers may shift their business to competitors or may substitute another manufacturer's products. The loss of or reduction of business from these customers could have a material adverse impact on our sales, results of operations, cash flows, and liquidity.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
We depend on key employees and the loss of these individuals could have an adverse effect on our business and financial results.
Our financial results could be adversely affected by increased competition for employees, difficulty in recruiting employees, higher employee turnover or increased compensation and benefit costs. Our employees are important to our success and we are dependent on our ability to retain the services of our employees in key roles. We have built our business on a set of core values, and we attempt to hire and retain employees who are committed to these values and our culture of providing exceptional service to our customers. In order to compete and to continue to grow, we must attract, retain and motivate our employees. We need qualified managers and skilled employees with technical and industry experience to operate our business successfully. If we are unable to attract and retain qualified individuals or our costs to do so increase significantly, our business and financial results could be adversely affected.
The key to drive growth in fiscal year 2025 is embedded in our strategy to focus on those verticals and horizontals where we can offer differentiated solutions to our customers in the fields of identification, signage and safety. Our main verticals are Chemical, Oil and Gas, Food and Beverage, Warehouse and Logistics, Aerospace and Defence, Laboratory and Healthcare, Telecom & Datacentres, Rail, Construction, and General Manufacturing. The horizontals are Product ID, Wire ID, Safety and Facility ID including Lock Out Tag Out, Traffic and Parking, Warehouse & Logistics including handling of Dangerous Goods (COSHH), Impact Protection, Wayfinding, and First Aid.
Our ID solutions shall help our customers to grow efficiency through automated identification and tracking of goods and people. Our safety solutions help customers to be compliant and provide safe environments for employees to work in. A significant proportion of our solutions require consultative selling to find and implement what suits the customer best.
Our go to market approach foresees that we will keep our existing brands, since each of these are known by different customer segments, but where several brands are addressing the same target segments we will streamline our go to market efforts.
We endeavour to serve the customer through whatever channel they prefer and utilise an Omnichannel approach. We also foresee a number of investments in our production capabilities for identification and signage.
The directors expect the Company to continue to trade profitability. The Company has a strong balance sheet and Brady Corporation Limited is part of a cash pooling structure which gives access to funds held at the group level. The Company does not have any external debt funding. Considering these factors, the directors are confident about the operations for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
The Board, both individually and together, consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172 (1) (a f) of the Companies Act 2006) in the decisions taken during the Period. In particular:
Our Strategy and Long Term Consideration: The likely consequences of any decision in the long term
To ensure the Board takes account of the likely consequences of decisions in the long term, the Board has a three year plan. Progress is reviewed regularly at quarterly Board meetings. This is strengthened through clear reporting lines and sharing of management information and KPIs with the Board and regular contact between members of the Board and senior leadership.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
Our People: The interests of the Company’s employees
Our employees are fundamental to the delivery of our plan. To strengthen our employee engagement, we hold quarterly business briefings with open Q&A sessions. The company also has range of initiatives, activities and benefits aimed at enhancing the interest of our employees. At our heart we are a customer service based business and as a result our people are one of our most important assets. We aim to provide our customers with high quality advice and inspiration and to do this successfully we need highly engaged specialist teams in our direct sales force and customer service teams that can engage with our customers and give expert advice.
Technical knowledge and a strong service ethic are paramount and we invest significant amounts of time and money in training our people every year. Training is provided in a number of formats to accommodate the respective learner’s style, pace, location, technical knowledge and access. The Company is committed to the continued development of its people. Strategic talent reviews and succession planning occur on a planned cadence annually. The CEO and the Senior Vice President of Human Resources convene meetings with senior Company leadership and the Board of Directors to review top enterprise talent and discuss succession planning for key leadership roles.
Our employees are set meaningful objectives and have regular review meetings during the year to ensure focus on the most appropriate development areas and personal growth. Ongoing dialogue between managers and teams throughout the calendar year is proactively encouraged and managed through a robust HR tool “Workday”. Dialogue meetings are guided and structured in a way that achieves the best outcomes for all.
Employee engagement in the business is high and we conduct a bi-annual employee engagement survey. This allows us to tailor questions to specific topics and build a long term view of employee engagement. The system also allows a mid year “pulse” survey which provides a helpful interim update on progress against key initiatives and encourages managers to develop action plans.
Investing in our people is protecting our future and promoting our success. We want Brady to be a great place for all our colleagues. Our people are our ambassadors, and our goal is for a proud and empowered workforce.
Diversity, Equity, and Inclusion
Fostering a culture of diversity, equity and inclusion in the workplace means employees feel valued and listened to, and the Company has made this a top priority. The Company believes that its culture of diversity, equity and inclusion enables it to create, develop and fully leverage the strengths of its workforce to exceed customer expectations and pursue its growth objectives. To this end, the Company engages employees through various employee resource groups staffed by employees with diverse backgrounds, experiences and characteristics who share a common interest in professional development, improving corporate culture and delivering improved business results. Each employee resource group is sponsored and supported by senior leaders throughout the organisation.
The Company has implemented several measures to drive accountability for increasing diversity, equity and inclusion throughout the global organisation. The CEO and other senior leaders have diversity, equity and inclusion objectives embedded in their annual performance goals. The Company also strives to have a diverse talent pipeline by partnering with its business units in their workforce planning forecasts to develop initiatives and goals to recruit diverse talent across defined organisational levels and skill areas. The Company trains its recruiting workforce in diversity sourcing strategies and partners with external organisations that develop and supply diverse talent. The Company has also expanded its university outreach program to access diverse organisations, has implemented interview guides to mitigate bias in interviewing, has implemented a Company-wide recruiting policy to drive change and ensure manager accountability, has implemented mentoring programs to increase employee engagement and retention and has implemented required training for all managers on diversity, equity and inclusion compliance and unconscious bias.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
Business Relationships: The need to foster the Company’s business relationships with suppliers, customers and others
Suppliers
We source our products directly from manufacturers on a global basis, with a focus on building long term strategic relationships with our manufacturing partners. Owning as much of the post manufacture supply chain as possible is a key aspect of our business model and an important source of competitive advantage.
We proactively manage our key supplier relationships and hold regular meetings to provide opportunity for hearing from our strategic partner’s first hand on what challenges they face and understanding ways we can collaborate towards solutions. The directors engage where necessary in terms of matters of external suppliers, be it a decision over which supplier to use, or discussions of any significant issues or disputes that may arise. Again, such matters form part of the regular market review meetings taking place involving the Directors.
Customers
We supply our customers with a market leading product range and hold regular focus groups with our customers to enable us to truly understand their needs, this input guides our product development team in the design and selection of new products. We work collaboratively with our key suppliers to develop new ranges; with our business providing the customer insight into emerging style trends and the manufacturer providing the technical knowledge and production capability. We operate multiple channels to market to provide all our customers with access to our market-leading product range and service in the most the convenient format for them. E Comm is a vital sales channel which has had major investment to improve the customer experience and now accounts for almost 50% of sales turnover.
We deliver value to our customers by combining differentiated products with excellence in customer service, the convenience of a contact centre and a world class website. This is combined with competitive pricing to ensure that all of our customers receive great value. We continue to conduct customer research to understand the needs and wants of our customers.
The Board maintains a commitment to promoting an active, open and honest approach to interactions with the Company’s stakeholder community, and this includes regularly interacting with local government and industry bodies. Our relationship with the media is also one of openness, honesty and is proactive.
Community and Environment: The impact of the Company’s operations on the community and environment
Community
Brady employees have continued to support our local charity partnerships throughout the year, taking part in a variety of community projects and fundraising events. Each site has a social committee that focuses on charity and community activities. To date the company has donated goods to food banks and local hostels in the Manchester and Oxfordshire regions.
Environment
The company continues to invest in upgrading its facilities, reducing our footprint, improving energy efficiency, reducing waste and using Biodegradable products.
All our suppliers are required to comply with the Brady Responsible Sourcing code. This code has been designed to be ethical, auditable and achievable and is in place to promote good working practices with our suppliers. The Code represents the Company’s fundamental expectations of its supply partners in relation to responsible sourcing.
Brady will not knowingly work with any supplier who does not comply and requires all suppliers to acknowledge this Code and confirm their acceptance of its provisions. Compliance is underpinned by way of contractual obligation and audit process. Suppliers applying this code are expected as a minimum to comply with national and other applicable laws. Suppliers are expected to be able to meet our high standards of behaviour and business ethics. As part of our auditing process, all of our suppliers have to complete a Social and Ethical Self-assessment document to be able to identify if there are any product or geographical risks.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
We work proactively to ensure that our teams take into consideration the principles of sustainable development, in particular the optimum use of raw materials, water, the efficient use of energy and also minimising the amount of waste as a result of the supply chain and our manufacturing process.
Our Culture, Values & Standards: The desirability of the Company maintaining a reputation for high standards of business conduct; and the need to act fairly as between members of the Company.
The Directors consider it crucial that the Company maintains a reputation for high standards of business conduct. The Board is responsible for setting, monitoring and upholding the culture, values, standards, ethics, brand and reputation of the Company.
The Directors, Senior Leadership and Management drive the embedding of the desired culture throughout the organisation and the companies values, to, Be better every day, Put our customers experience at the centre, Deliver what you promise, Differentiate through innovation, Protect our future, Unlock potential in yourself and others and Win the right way, these are driven throughout the heart of the business in everything we do, reflected in our policies and practices and how we deal with others.
These values and standards guide decision making and promote success, including the consequences of those decisions in the long term.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2025
The directors present their report and the financial statements for the year ended 31 July 2025.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £4,066k (2024 - £3,689k).
There were dividends paid of £19,500k during the year (2024 - £Nil).
The directors who served during the year were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
The Company's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the Company’s policies approved by the board of directors, which provide written principles on the use of financial derivatives to manage these risks. The Company does not use derivative financial instruments for speculative purposes.
Competitive pressure in the UK is an ongoing risk, which the Company manages by continually looking to differentiate its product offering in terms of quality and applications and by providing the highest levels of customer service. Details of the principal risks and uncertainties can be found on pages 3-5.
Cash flow risk
The majority of the Company’s business is within the UK and it has little foreign exchange exposure. The Company’s operating facilities could be disrupted for reasons beyond the Company’s control such as fire or other issues and as such the Company has in place a business recovery plan to cover most likely scenarios.
Credit risk
The Company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The Company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
Liquidity risk
To maintain liquidity and ensure that sufficient funds are available for ongoing operations and future developments, the Company uses a mixture of long term and short-term intergroup financing. The Company has no external debt. Further details regarding the liquidity risk can be found in the accounting policies in the financial statements.
Directors' indemnities
The Company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the date of this report.
Employment of disabled employees
Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Company continues and that appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee consultation
Quarterly meetings are held with all employees and with employee representatives to discuss sales, financial position and prospects. Opportunity is given at these meetings for senior executives to be questioned about matters which concern the employees. Information regarding developments within the Company are also available to all employees on the intranet website of the Company. All employees are encouraged to be involved in both the performance of the Company and their own personal development through a variety of incentive schemes. The Company considers its relations with employees to be excellent. Staff turnover for the year averaged 14% (2024: 14%).
Environment, health and safety
The Company attempts to minimise its impact on the environment through the safe disposal of waste material and recycling. The Company is fully compliant with its packaging waste obligations, WEEE and ROHS regulations via Valpak compliance schemes. The Company ensures detailed risk assessments are in place for all relevant processes.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company has complied with all applicable legislation and regulations. The report includes 1 additional site for Gravotech which uses both gas and electricity.
Annual Energy Efficiency Data and SECR Data
Brady Corporation is committed to reducing its carbon footprint and has always looked for ways of continuous improvements to fulfil this throughout its sites. Being ISO14001 certified ensures that we are regularly audited on this commitment.
∙Total Emissions Performance (tCO2e)
From Aug-24 to Jul-25 the total emissions were 385 tCO2e and it has been calculated that 2024-2025 emissions are 9% lower than those in the same period in 2023-2024.
∙Energy Performance Electricity kWh
From Aug-24 to Jul-25 the total electricity consumption was 941,990 kWh and it has been calculated that 2024-2025 electricity consumption is 13% lower than those in the same period in 2023-2024.
∙Energy Performance – Natural Gas (kWh)
From Aug-24 to Jul-25 the total natural gas consumption was 856,096 kWh and it has been calculated that 2024-2025 natural gas consumption is 11% higher than those in the same period in 2023-2024.
∙Energy Performance – Direct Transport (kWh)
From Aug-24 to Jul-25 the total direct transport consumption was 252,867 kWh and it has been calculated that 2024-2025 transport energy consumption is 5% higher than those in the same period in 2023-2024.
∙Scope 1 Emissions Performance (tCO2e)
From Aug-24 to Jul-25 the Scope 1 emissions were 218 tCO2e and it has been calculated that 2024-2025 emissions were 10% higher than those in the same period in 2023-2024.
∙Scope 2 Emissions Performance (tCO2e)
From Aug-24 to Jul-25 the Scope 2 emissions were 167 tCO2e and it has been calculated that 2024-2025 emissions were 25% lower than those in the same period in 2023-2024.
∙Intensity Ratio
From Aug-24 to Jul-25 the Intensity Ratio was 7 and it has been calculated that the ratio in 2024-2025 was 25% lower than that in the same period in 2023-2024.
The company is committed to reducing all waste created though our processes, we continue to maintain zero waste to landfill. We have updated our Manufacturing processes and our environmental impact and sustainability was a key drive in these decisions and the direction we have taken. As Part of our continued push for better sustainability we will continue to switch all company vehicles to fully electric or hybrid vehicles wherever possible. All our suppliers are required to comply with the Brady Responsible Sourcing code. This code has been designed to be ethical, auditable and achievable and is in place to promote good working practices with our suppliers. The Code represents the Company’s fundamental expectations of its supply partners in relation to responsible sourcing. Brady will not knowingly work with any supplier who does not comply and requires all suppliers to acknowledge this Code and confirm their acceptance of its provisions. Compliance is underpinned by way of contractual obligation and audit process. Suppliers applying this code are expected as a minimum to comply with national and other applicable laws. Suppliers are expected to be able to meet our high standards of behaviour and business ethics. As part of our auditing process, all of our suppliers have to complete a Social and Ethical Self-assessment document to be able to identify if there are any product or geographical risks. We work proactively to ensure that our teams take into consideration the principles of sustainable development, in particular the optimum use of raw materials, water, the efficient use of energy and also minimising the amount of waste as a result of the supply chain and our manufacturing process.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
Going concern
The directors have acknowledged the latest guidance on going concern. Also, the directors believe that further cost saving initiatives will be possible. The directors expect the Company to continue to trade profitability.
The Company has a strong balance sheet and Brady Corporation Limited is part of a cash pooling structure which gives access to funds held at the group level. Considering these factors, the directors are confident about the operations for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statement.
Disclosure of information in the Group Strategic Report
The company has chosen, in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out within the group's Strategic Report the company's Strategic Report Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BRADY CORPORATION LIMITED
We have audited the financial statements of Brady Corporation Limited (the 'Company') for the year ended 31 July 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BRADY CORPORATION LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BRADY CORPORATION LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
−The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
−The Companies Act 2006;
−Financial Reporting Standard 102;
−UK employment legislation;
−UK tax legislation;
−UK health and safety legislation; and
−General Data Protection Regulation.
−We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
−We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.
−The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
−We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
−Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
−Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
−Challenging assumptions and judgments made by management in its significant accounting estimates; and
−Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
−As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
−The application of inappropriate judgements or estimation to manipulate the Company's financial position, particularly in connection with assessing indicators of impairment for the entity's subsidiaries;
−Posting of unusual journals and complex transactions; and
−The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BRADY CORPORATION LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
Origin One
108 High St
RH10 1BD
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2025
Page 17
STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 32 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2025
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Brady Corporation Limited (‘the Company’) is a private Company limited by shares and incorporated in England and Wales under the Companies Act. The address of the registered office is given on the Company information page.
The nature of the Company’s operations and its principal activities are set out in the Strategic Report.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The Company's functional and presentational currency is GBP and the accounts are rounded to the nearest £.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Brady Corporation as at 31 July 2025 and these financial statements may be obtained from its registered office, 6555 W. Good Hope Road, PO Box 571, Milwaukee WI 53201-0571, USA.
Transactions denominated in foreign currencies are translated into sterling at rates ruling at the month of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates ruling at that date. These translation differences are dealt with in the profit and loss account.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management.
Depreciation is on a straight-line basis calculated at annual rates estimated to write off each asset over the term of its useful life. The rates generally in use are as follows:
Land & building as per the fixed asset - 10 to 40 years
Short-term leasehold property - Over the term of the lease
Plant, machinery and office - 2 to 10 years
equipment
Assets under construction are not depreciated.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
Stocks are valued at the lower of cost and net realisable value. Cost is measured using standard costing as this is deemed a reasonable approximation of the actual cost. Work in progress and finished goods that were manufactured in house include absorbed labour and attributable overheads. A purchasing overhead rate is added to the cost price. At each balance sheet date, stocks are assessed for impairment.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
All financial assets, being cash and cash equivalents, trade debtors and loans receivable are measured at amortised cost. Cash and cash equivalents comprise of cash at bank and in hand and short term deposits.
Financial liabilities are initially measured at fair value and subsequently measured at amortised costs. The discount and costs of issues are amortised over the life of the instrument, with the amortisation being included in the effective interest rate of the instrument which is included under finance charges in the profit and loss account.
Financial liabilities are initially measured at fair value and subsequently measured at amortised costs. The discount and costs of issues are amortised over the life of the instrument, with the amortisation being included in the effective interest rate of the instrument which is included under finance charges in the profit and loss account.
Research and development expenditure is charged to the profit and loss account as incurred.
The ultimate parent Company issues equity-settled share based compensation to certain employees of the Company. The expense for the employees' service is based on the fair value of the instruments at grant date. The expense is then recognised on a straight line basis over the vesting period of the grant, based on the Company's estimate of the shares that will eventually vest, and adjusted for the effect of non-market based vesting conditions. The fair value of the instruments at grant date is determined using the Black-Scholes option-pricing model. As noted above, an exemption has been taken in relation to the disclosure of share based payments.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
11.Taxation (continued)
Brady Corporation (Brady) is a US headquartered multinational corporation reporting its financials in US GAAP and in USD. Brady is subject to Pillar II rules for its fiscal year 2025 (August 1, 2024 - July 31, 2025) with an original reporting period of January 2027.
It has completed an initial Safe Harbour calculation for jurisdiction it has an entity (or group of entities). While the Brady UK Group did not meet the Safe Harbour requirements, subsequent calculations applying UK top-up tax regulations indicate that the UK Group’s effective tax rate is above 15%. Consequently, it is estimated that no top-up tax will be owed in the UK.
Under FRS 102, current tax is recognised in respect of taxes payable based on taxable profit for the period. As at 31 July 2025, no material current tax liability has arisen in respect of Pillar Two top-up taxes. Accordingly, no provision has been recognised in these financial statements.
Deferred tax has not been recognised in relation to potential future Pillar Two top-up taxes, as the legislation applies a jurisdictional effective tax rate test and does not give rise to temporary differences as defined under Section 29 of FRS 102.
The Group continues to monitor developments and will recognise any resulting liabilities in the period in which they arise.
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Page 28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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Page 29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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Page 30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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Profit and loss account – includes all current and prior year retained profit and losses.
Capital contribution reserve – includes the share option movement posted to equity.
Share premium – represents the excess over nominal value of shares that have been issued.
Called up share capital – represents the nominal value of shares that have been issued.
The Company operates a fully insured defined contribution scheme, the assets of which are held separately from those of the Company in independently administered funds. The Company makes contributions to employees’ private pension schemes, for which the pension cost and charges for the year amounted to £439k (2024 - £430k). At 31 July 2025 there was a pension accrual of £Nil (2024 - £Nil).
The Company has taken advantage of the exemption available under FRS 102 not to disclose Related Party transaction with other 100% owned subsidiary undertakings within the same group.
Page 31
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
The directors regard Brady Corporation incorporated under the laws of the state of Wisconsin, USA as being the ultimate parent and controlling undertaking, copies of whose group financial statements are available from its registered office, 6555 W. Good Hope Road, PO Box 571, Milwaukee WI 53201-0571, USA. Brady Corporation Limited is owned by B.I (UK) Limited. The financial statements of Brady Corporation are the largest and only consolidation the Company’s results are reported into.
Page 32