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- Wealth management software company Bravura Solutions (BVS) achieved an increase in earnings over the first half of the 2022 financial year but its net profit after tax for FY22 guidance has been reduced
- Revenue was up 14 per cent to $132.3 million, reflecting growth from wealth management and funds administration revenue
- EBITDA rose 61 per cent to $25.3 million with a margin of 19 per cent compared to 14 per cent in the prior year
- While NPAT grew 69 per cent to $15.3 million, the company is downgrading its FY22 NPAT guidance to between $25 and $30 million
- BVS shares are down 17.9 per cent to trade at $1.55
Wealth management software company Bravura Solutions (BVS) achieved an increase in earnings over the first half of the 2022 financial year but its net profit after tax for FY22 guidance has been reduced.
Revenue was up 14 per cent to $132.3 million, comprising $82.6 million in wealth management revenue and $49.7 million in funds administration revenue.
Bravura Solutions offers software solutions for the wealth management, life insurance, and funds administration industries. It claims its technology helps clients increase operational and cost efficiency, enhances their ability to innovate and grow, and minimise their risk, and allows them to provide high-quality customer service.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 61 per cent in the first half to $25.3 million with an EBITDA margin of 19 per cent compared to 14 per cent in the prior corresponding period (pcp).
“Bravura’s 1H22 results are encouraging and the return to both revenue and EBITDA growth is very welcome. We are beginning to see the positive effects of our strategic investments,” CEO Nick Parsons said.
Corporate costs remained flat despite the company investing in sales capability and the full period impact of the Delta Financial Systems acquisition which took place in the first half of FY21.
Further, net profit after tax (NPAT) increased by 69 per cent to $15.3 million and earnings per share was up 68 per cent to 6.2 cents.
The company declared an unfranked interim dividend of 3.7 cents per share.
Bravura remains confident for the remainder of FY22 and expects revenue growth to continue, resulting in full-year growth of more than 10 per cent against FY21.
To ensure revenue growth over the next few years, the company will focus on strategic initiatives such as investing in its Sonalta Alta digital-first product, the cloud and investing in its people.
The company said it will “emerge stronger as a result of the strategic initiatives and investment in research and development to develop a suite of microservices and increase its total addressable market”.
In terms of guidance, Bravura expects FY22 EBITDA will be between $45 and $50 million. Despite NPAT growth, the company is downgrading its FY22 NPAT guidance to between $25 and $30 million.
BVS ended the period with $50.6 million in cash, compared to $73.6 million at the end of June 2021.
Company shares were down 17.9 per cent to trade at $1.58 at 12:50 pm AEDT.
