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News Room Articles from 2010
Sydney, 18 August 2010 (ASX: BVA) – Bravura Solutions Limited (Bravura) - a leading global supplier of transfer agency and wealth management software applications and professional services – today announced the full year results for the financial year ended 30 June 2010.
EBITDA profit, excluding licence fees for the 2010 financial year (FY2010) was $3 million, a strong turnaround of $13.1 million following a $10.1 million loss in 2009. Operating cash flow improved by a further 11 percent to $14.2 million, a $9 million increase over the past two years and a solid achievement.
Commenting on these particular results, Simon Woodfull Group CEO, said, “Bravura has delivered a very credible result in FY2010. We have done so in a difficult operating environment, where the effects of the Global Financial Crisis (GFC) are still prevalent amongst our clients. We have strategically focused on building and maintaining strong relationships with our existing client base, while continuing to sign agreements with key new clients.
“We are also extremely pleased with the improvement in operating cash flow. The trend of continued and sound operating cash flow is testament to the success of our strategy of engaging geographic diversification, developing a strong product offering and delivering quality financial software to an expanding client base.
“We anticipate that as the global eoconmy further recovers we will benefit from emerging opportunities that will enable us to improve our operating margins and fully utilise the infrastructure that we have in place”, Mr Woodfull said.
FY2010 key results
- EBITDA (excluding licence fees) improved by $13.1 million to $3 million
- EBITDA (including licence fees) declined by $6.1 million to $10 million
- Negative currency impact on EBITDA of $3.1 million
- Revenue (excluding licence fees) declined 11.7 percent to $94.4 million (1.2 percent to $105.5 million on a Constant Currency basis)
- Strong expense control resulting in expense reduction of $26 million including currency impact of $9.3 million
- Impairment of intangible assets of $7.6 million
- Net operating cash flow increased to $14.2 million
Results overview
| Results summary | FY09 | FY10 | Chg. |
| Revenue | 133.5 | 101.4 | (24.1%) |
| Revenue excluding licence fees | 106.8 | 94.4 | (11.7%) |
| Expenses | 117.4 | 91.4 | (22.2%) |
| EBITDA | 16.1 | 10.0 | (37.9%) |
| EBITDA excluding licence fees | (10.1) | 3.0 | 129.7% |
| Net profit/(loss) after tax | 1.6 | (13.2) | - |
| Operating cash flow | 12.8 | 14.2 | 10.9% |
Revenue for FY2010 was $101.4 million. This $32.1 million or 24.1 percent decrease occurred due to currency exchange effects. Had the exchange rate from FY2009 remained constant, the revenue decrease would only have been 14.8 percent. The strong Australian dollar has had a significant impact on the translation of overseas revenue which now accounts for approximately 75 percent of total revenue.
Licence fee revenue decreased by $19.7 million, however, this has been somewhat offset by a significant improvement in underlying business as demonstrated by consistency with 2009 figures as measured in Constant Currency.
The Australian dollar / Sterling exchange rate alone, impacted revenues by $12.4 million as the GBP / AUD exchange rate declined year on year by 18 percent.
EBITDA
EBITDA excluding licence fees increased by $13.1 million over the previous year in actual terms and improved by $14.9 million in Constant Currency. This turnaround was the result of a continued focus on cost management. However, the exchange rate did once again result in a negative impact of $3.1 million on the EBITDA result.
The Company has significant natural hedging through its offshore personnel and infrastructure costs which have played a role in assisting to minimise currency effects.
Operating costs
Operating costs decreased by $26 million as a result of continued management review and focus, and strengthening of the Australian dollar.
Cash flow
Cash flow continues to be a focus area for the Company - it achieved an EBITDA conversion to operating cash of 142 percent for FY2010. This result compared to the previous years‟ result of 75 percent is very pleasing. It aligns with the overall trend towards a revenue and cash stream that is more recurring in nature, assisted further going forward by the Mutual Fund Technologies (MFT) acquisition.
Balance sheet
The Company‟s financial position continues to improve with total net assets increasing by 47 percent to $131 million.
The significant reduction in liabilities relates to the reduction of the Company‟s working capital facility and the settlement of a significant forward exchange contract. Overall, debt to equity reduced to 25.6 percent following the recapitalisation undertaken in September 2009 and the recent Rights Issue relating to the MFT acquisition.
The Company remained well within compliance with banking covenants as at 30 June 2010.
Events since last year
During the last 12 months, the Company undertook a successful organisational restructure. It also completed an acquisition in line with its overall strategy for the transfer agency division of the operation. The MFT acquisition completed in June 2010, and as a result increased the Company‟s long-term annuity revenue streams and will assist in delivering improved predictability of earnings.
The earnings accretive acquisition of MFT will further strengthen the United Kingdom business while opening up other European opportunities.
Over the past year, the Company has also signed contracts with two new clients, three new contracts with existing clients and one contract extension with an existing client. It has also completed implementation projects with key clients in South Africa, Australia and Europe.
Outlook
The three year strategic plan that commenced in early 2010 continues. Strengthening of the Board and Executive team, coupled with internal restructure and senior leadership changes has greatly improved operational efficiency and effectiveness. Key deliverables and a lean cost base continue to be the focus.
Lower costs associated with the Company‟s offshore centres in Poland and India will deliver improved cost savings as it moves to further utilise these facilities for operational support and development.
The Company‟s next generation Sonata solution based on SOA architecture, and utilising Oracle‟s latest database platform and Java, is now market ready and will be rolled out to clients as the year progresses.
The Company will also ensure that full utilisation of its integration capabilities are used to optimise „cross-selling‟ of its product offering and maximise available client revenue.
The Company has now clearly defined its target growth markets and with a sound financial and cash position, is able to pursue value-add opportunities that are well aligned with its acquisition strategy.
The Company remains confident that it now has an optimal business model, infrastructure and suite of products. The ability to deliver a strong EBITDA result without a dependency on licence fees, stronger recurring revenues assisted by the MFT acquisition and robust cash flow, is anticipated to enable the Company to deliver both top and bottom line future growth.
2010-08-18
| Bravura appoints Sales Director - APAC | 24/06/2010 |
Sydney / London, 24 June 2010 (ASX: BVA) - Bravura Solutions Limited (Bravura) - a leading global supplier of transfer agency and wealth management software applications and professional services - has expanded its global team with the appointment of Andrew Belger as Sales Director for the Asia Pacific (APAC) region.
Reporting directly to Group CEO, Mr Simon Woodfull, Andrew will assume overall responsibility for driving new business within the APAC region.
Mr Woodfull said: "We are delighted to welcome Andrew to Bravura's Executive Management Team. We are confident that with over 15 years experience within IT and sales, he will be an invaluable addition to our company.
"Andrew's wealth of knowledge and expertise will help us to capitalise on our pipeline of opportunities and further grow our business in APAC. We are currently experiencing significant industry interest in our wealth management offering and so recruiting someone with Andrew's strong skill set is a particularly prudent move for us".
Before joining Bravura, Andrew held the position of Director, Information Management Solutions, Asia Pacific and Japan at HP Software. In this role Andrew was responsible for sales leadership of HP Software's Information Management Solutions business in the Asia-Pacific Japan Region
Prior to this, Andrew held a number of senior positions at various organisations, including Mercury Interactive Australia and IBM Australia. In addition to an in-depth knowledge of the IT industry, Andrew has significant experience with driving sales teams and in the achievement of revenue and operating profit targets.
"I am excited to join Bravura and look forward to developing the opportunities available to the organisation. Bravura's offering is unique in the marketplace and presents an attractive proposition to potential clients.
"I am keen to further grow Bravura's footprint in the APAC region and contribute to the organisation's overall success in wealth management industry," said Andrew.
Andrew holds a Master of Business Administration and a Bachelor of Commerce, both from the University of Western Australia.
Andrew will be based in Bravura's Sydney office.
2010-06-24
Sydney / London, 17 June 2010 (ASX: BVA) – Bravura Solutions Limited (Bravura) – a global provider of transfer agency and wealth management software applications and professional services - announced today that it has completed the acquisition of Mutual Fund Technologies (MFT), a provider of transfer agency services, predominantly in Europe.
Bravura’s Group CEO, Simon Woodfull, said: “The acquisition of MFT is key to Bravura’s increasing presence in the transfer agency market, placing us in a strong position to grow our European transfer agency footprint.
“We welcome the new staff joining Bravura as part of the acquisition, and believe that they will play a major role in continuing our service offer of sophisticated products across a range of broad-reaching needs,” he said.
As part of the transaction, Bravura will acquire MFT’s GFAS (Global Funds Administration System) software solution. With its addition to Bravura’s existing portfolio of transfer agency solutions, three of the top five UK fund managers (by funds under management) will now run on Bravura transfer agency platforms.
The acquisition is expected to be EPS accretive and highly cash generative due to long term annuity revenue streams. It will also deliver improved predictability of earnings.
2010-06-17
| EBITDA guidance | 16/06/2010 |
16 June 2010 (ASX: BVA) – Bravura Solutions Limited (Bravura) – a global supplier of transfer agency and wealth management software applications and professional services – wishes to provide guidance to the market regarding its EBITDA for the financial year ending 30 June 2010 (FY10).
Based on updates received by Bravura in recent days regarding discussions with two customers for new licence revenue, the Board met yesterday to assess the impact of these developments outlined below and expects EBITDA for FY10 to be approximately $10 million.
In respect of these developments, one client has delayed the closing of a new licence contract prior to 30 June 2010 and a second client has made the decision to remain on an existing Bravura software platform instead of upgrading to a more recent version of the software. Each client remains a customer of Bravura.
Despite lengthy sales processes as a consequence of the current financial climate, Bravura continues to notice a strengthening of its qualified sales pipeline.
Bravura's acquisition of MFT will complete shortly. Once the acquisition of MFT is complete there will be increased certainty and stability of reoccurring annuity revenue streams that will assist Bravura's predictability of its earnings.
2010-06-16
15 June 2010 (ASX: BVA) – Further to the announcement issued by Bravura Solutions Limited (Bravura) on 10 June 2010, Bravura confirms that it has today allotted 229,831,863 ordinary shares under the fully-underwritten renounceable Rights Issue announced on 10 May 2010. Bravura's total issued capital, following allotment of these shares, is 648,127,461 ordinary shares.
Holding statements will be despatched by 16 June 2010.
2010-06-16
| Bravura Solutions Limited Renounceable Rights Issue: Close of Rights Issue and Shortfall Amount | 10/06/2010 |
Sydney, 10 June 2010 (ASX: BVA) – Bravura Solutions Limited (Bravura) – On 10 May 2010, Bravura announced that it would conduct a fully-underwritten renounceable rights issue to raise approximately A$23 million (Rights Issue).
The Rights Issue closed at 5pm on Monday 7 June 2010. At the close of the Rights Issue, valid acceptances had been received by Bravura for 204,714,112 shares out of the total new shares offered as part of the Rights Issue (New Shares), raising approximately A$20,471,411 and representing approximately 88 per cent of the New Shares offered. The level of the valid acceptances which have not been received (Shortfall) is 25,117,751 (Shortfall Shares), equating to approximately A$2,511,775. The figures specified above are indicative and subject to reconciliation including confirmation that all payments made by participating shareholders have been cleared by the relevant financial institutions on which they have been drawn.
The Shortfall is to be subscribed for pursuant to the underwriting agreement between the Ironbridge affiliated underwriters and Bravura, details of which are set out in section 6.1 of the Rights Issue Offer Document.
The New Shares (including the Shortfall Shares) will be issued on 15 June 2010, with holding statements to be despatched the following day.
The net proceeds from the Rights Issue, including the funds to be received from the Ironbridge affiliated underwriters for the Shortfall Shares will be used to assist in the purchase of Mutual Funds Technology (MFT). MFT is the provider of a transfer agency software solution, Global Fund Administration System.
2010-06-10
| Bravura appoints new sales executive | 17/05/2010 |
London, 6 May 2010 (ASX: BVA) – Bravura Solutions Limited (Bravura) - a leading global supplier of wealth management applications and professional services – has expanded its global team with the appointment of Eric Welsby as Sales Executive for the EMEA region.
Mr Tony Klim, CEO EMEA said, “We are delighted to welcome Eric to Bravura. We are confident that with ten years exclusive experience within pensions, fund management and platforms, he will be an invaluable addition to our company.
“Eric’s wealth of knowledge and expertise will help us to capitalise on a growing number of opportunities in EMEA. Bravura is currently experiencing significant industry interest in the region, evidenced by two recent major deals, making recruiting someone with Eric’s strong skill set a prudent move for us”.
Before joining Bravura, Eric held the position of Principal Consultant at FusionExperience, where he was responsible for establishing its Wealth Management practice.
Prior to this, Eric held a number of senior positions at various organisations, including GBST, Adnitor and Norwich Union / Lifetime Group Ltd. He has significant experience in proposition and distribution strategies within the retail investment and platform sectors, as well as in-depth industry knowledge.
“I am very pleased to join Bravura and am excited to source and develop the considerable market opportunities available to the organisation. I believe that Bravura is uniquely placed to provide flexible solutions to today’s fast moving and increasingly complex platform sector.
“Bravura’s functionally rich wealth management solutions present a very compelling and relevant proposition to the market,” said Eric.
Bravura can provide wealth management solutions as integrated components or as end to end solutions, including administration services through strategic partnerships. Bravura also supports launching new propositions to market, as well as providing support for clients looking to re-engineer existing models to capitalise on market opportunity or adapt to changing regulation.
2010-05-17
Sydney, 10 May 2010 (ASX: BVA) – Bravura Solutions Limited (Bravura) - a global supplier of transfer agency and wealth management software applications and professional services – announces today a fully underwritten $23 million rights issue to assist in the funding of the acquisition of Mutual Fund Technologies Limited (MFT) (Acquisition). MFT is the provider of a transfer agency software solution, Global Fund Administration System (GFAS).
1. Underwritten renounceable rights offer
Bravura proposes to conduct a fully underwritten, renounceable rights issue (incorporating ASX rights trading of ordinary shares of Bravura) to raise approximately $23 million for the purpose of partly funding the proposed acquisition of MFT (Rights Issue).
The proposed rights issue will offer eligible Bravura shareholders the opportunity to subscribe for 1 new share (New Shares) for every 1.82 ordinary fully paid shares held on the record date, at the issue price of $0.10 per share. This represents a discount of 10% to volume weighted average price of Bravura shares on ASX over the five trading day period immediately prior to the date of this announcement.
Eligible Bravura shareholders will be invited to participate in the Rights Issue. The Rights Issue will open on Monday, 24 May 2010 and close at 5:00pm (Sydney time) on Monday, 7 June 2010.
Eligible shareholders can choose to take up their entitlement in whole, in part, or not at all. Eligible shareholders who take up their entitlement in full may also apply for New Shares in excess of their entitlement (Additional New Shares). However, Additional New Shares will only be allocated to eligible shareholders if there are sufficient New Shares from eligible shareholders who do not take up their full entitlement, subject to the allocation policy and any scale back that Bravura may apply.
The Rights Issue is being undertaken using a traditional structure with a rights trading period. The rights trading period commences on Wednesday, 12 May 2010 and will end at 5:00pm (Sydney time) on Monday, 31 May 2010.
Shareholders eligible to participate in the Rights Issue will shortly receive a copy of the Rights Issue offer booklet and a personalised entitlement and acceptance form which will provide further details on how to participate.
The proposed Rights Issue will be fully underwritten by Carp Advisory A Pty Ltd in its capacity as trustee for the Carp Investment Trust No. 1, Carp Advisory B Pty Ltd in its capacity as trustee for the Carp Investment Trust No. 2 and Carp Holdings NV, being entities wholly owned or affiliated subsidiaries of Ironbridge Fund II (Ironbridge).
2. Acquisition of MFT
Bravura today has entered into a Sale and Purchase Agreement (SPA) with FIL Limited (FIL) for the acquisition of all the shares in MFT with cash consideration of £19m to be paid on completion, with two deferred cash payments by way of earn out for another £500,000 each subject to reaching relevant revenue hurdles. In addition, MFT will before completion enter into various service agreements including a data centre agreement with its existing providers, to continue to receive certain software hosting and related services, maintenance, support, back-up and the like services after completion. Entering into these services agreements will assist in providing a seamless transition of MFT to Bravura’s ownership and minimising customer disruption.
Subject to satisfactory completion or waiver of the conditions precedent contained in the SPA (the most important of which is that the underwriting agreement is not terminated by the underwriters in respect of certain termination events beyond the control of Bravura), completion is expected to occur shortly after allotment of the New Shares to be issued under the Rights Issue.
The Acquisition is in line with Bravura’s strategy of strengthening its core business. MFT operates in the transfer agency market which is one of Bravura’s two core focus areas, being transfer agency and wealth management.
The Acquisition is expected to increase Bravura’s market share in the European transfer agency market. Bravura anticipates this will create the potential for cross-selling opportunities to MFT’s client base.
MFT is a profitable business with a blue chip customer base. Its GFAS software solution is a mature and stable product that generates strong EBITDA margins for MFT. Further, the Acquisition is expected to be EPS accretive, and is expected to improve the quality and predictability of Bravura’s earnings. Increased certainty and stability of longer term annuity revenue streams is also anticipated as a result of the Acquisition. The MFT business is highly cash generative with over 70% of its revenue in FY10 generated from client managed services agreements.
MFT’s GFAS transfer agency software solution is used by some of the UK’s largest (by funds under management) financial services companies. It provides transfer agency and record-keeping functionality for mutual funds domiciled in the UK and Channel Islands, Ireland, Luxembourg, Germany and Bermuda.
Brian Mitchell, Chairman - Bravura said “The acquisition of MFT presents an excellent strategic opportunity for Bravura to further establish a leadership position in one of our key markets - transfer agency solutions in Europe. The resultant benefits to Bravura will include the acquisition of an additional blue chip client base, increased market share, improved predictability of earnings and a broader product base creating development and support efficiencies.”
The Rights Issue is to partly fund the Acquisition. If for any reason the Acquisition does not proceed, Bravura will not proceed with the Rights Issue.
3. Exercise of options by Ironbridge
Ironbridge have agreed, subject to satisfaction of certain conditions contained in the underwriting agreement, to exercise 53,333,334 Ironbridge options, raising $8 million, through the issue of 53,333,334 New Shares (at a price of $0.15 per share), to assist in funding the Acquisition of MFT and associated costs. Ironbridge have agreed to exercise these options on or before the record date for the Rights Issue.
4. Indicative timetable
| Event | Date |
| “Ex rights” date - Rights trading commences | Wednesday, 12 May 2010 |
| Record date | 7:00pm,Tuesday, 18 May 2010 |
| Rights Issue opens | Monday, 24 May 2010 |
| Rights trading ends | Monday, 31 May 2010 |
| Rights Issue closes - latest time and date for acceptance and payment in full | 5:00pm, Monday, 7 June 2010 |
| Settlement date | Friday, 11 June 2010 |
| Allotment of New Shares under the Rights Issue | Tuesday,15 June 2010 |
| Normal trading of New Shares issued under the Rights Issue expected to commence on ASX | Thursday, 17 June 2010 |
5. Shareholder enquiries
Shareholders who have questions regarding the Rights Issue should call the Bravura Shareholder Information Line on 1300 084 986 (calls within Australia) or +61 3 9415 4686 (from outside Australia) at any time from 8:30am to 5:00pm (Sydney time) Monday to Friday during the Rights Issue offer period or visit our website at www.bravurasolutions.com.
For further information, visit http://www.bravurasolutions.com or contact:
Simon Woodfull, Group CEO, Bravura Solutions Limited +61 3 9935 2330
Kim Ramsay, Marketing Manager, Bravura Solutions Limited +612 9018 7891/+61423 758 014
Important information:
This document is issued by Bravura Solutions Limited, ABN 15 111 148 826 (Bravura). This document is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law or under any other law. It is for information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. This document does not constitute financial product advice and does not and will not form any part of any contract for the acquisition of Bravura shares. This document has been prepared without taking account of any person's investment objectives, financial situation or particular needs and prospective investors should conduct their own independent investigation and assessment of any offer and the information contained in, or referred to in, this document.
No action has been taken to register any offer or otherwise permit a public offering of securities outside Australia and New Zealand. This document does not constitute an offer of securities for sale in the United States, or to any person that is, or is acting for the account or benefit of, any U.S. person, or in any other jurisdiction in which such an offer would be illegal. This document may not be distributed or released in the United States or to, or for the account or benefit of, any U.S. Person.
This document contains certain "forward-looking statements". The words "anticipate", "believe", "will", "expect", "project", "forecast", "estimate", "likely", "intend", "should", "could", "may", "target", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward looking statements, opinions and estimates provided in this document involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Bravura, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. Forward looking statements are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Actual results, performance or achievements may vary materially for many projections because events and actual circumstances frequently do not occur as forecast and these differences may be material. Forward looking statements are not guarantees of future performance. These statements may assume the success of Bravura's business strategies. The success of any of these strategies is subject to uncertainties and contingencies beyond the control of Bravura, and no assurance can be given that any of the strategies will be effective or that the anticipated benefits from the strategies will be realised in the period for which the forward looking statements may have been prepared or otherwise.
NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. PERSONS
2010-05-10
Sydney, 6 May 2010 (ASX: BVA) - Bravura Solutions Limited (Bravura) – a leading global supplier of wealth management applications and professional services – has extended its existing contract with UniSuper to licence Bravura’s ePASS solution for use by participating employers for a five year term. UniSuper is the industry super fund for Australia’s higher education and research sector.
In 2008, UniSuper purchased a five-year license for Bravura’s ePASS solution for use by its non-participating employers. These employers make superannuation contributions on behalf of former university employees.
ePASS will now be progressively rolled out to participating employers that contribute on behalf of current university employees.
Terry McCredden, UniSuper’s CEO, said “ePASS gives UniSuper the ability to both streamline the contribution process for employers and to reduce our administrative overheads.”
ePASS is a single online service that can be used across a range of different savings and retirement products. It allows superannuation providers to deliver online services to employers, members and advisers, reducing administrative costs for processing contributions.
“Extending the ePASS solution at UniSuper will contribute significant reductions in administrative overheads. It will also improve the fund’s accuracy and efficiency when processing member contributions,” said Simon Woodfull, Group CEO at Bravura Solutions.
“Through its intuitive online interface, contributions received through ePASS can be promptly credited to UniSuper’s member accounts, minimising the complexity involved with in processing and receipting contributions,” he said.
2010-05-06
| Bravura signs deal with Australian Ethical | 06/04/2010 |
Sydney, 6 April 2010 (ASX: BVA) - Bravura Solutions Limited (Bravura) – a leading global supplier of wealth management applications and professional services – has signed a five-year agreement with Australian Ethical, a specialist fund manager in ethical and sustainable investing.
The contract will see the implementation of Bravura’s Garradin investment management system which will replace Australian Ethical’s existing software that manages investment portfolio assets and unit pricing. Australian Ethical has over 17,000 investors and has focused on ethical investment for over 23 years.
“We selected Bravura as our preferred software vendor after extensive market analysis conducted by advisory firm, First Treasury, to ensure our specific requirements would be met. We believe Bravura’s Garradin software is the most suitable on the market, based on its functional strengths and its strong client experience in relevant markets,” said Gary Leckie, Chief Financial Officer for Australian Ethical.
Garradin caters for investment management and private client administration. It is a comprehensive, multi-currency solution with integrated asset management, registry and tax management functions. A fully modular solution, it can be deployed across multiple sectors including retail wealth management platforms (such as wraps, master trusts and managed accounts), wholesale investment management, registry and mutual funds, custody and private banking.
Simon Woodfull, Group CEO for Bravura said: “The project will deliver substantial cost savings through a consolidation process and will create streamlined, improved management processes and efficiency.
“We are extremely pleased to welcome another new client to our expanding portfolio this year and look forward to working with Australian Ethical to deliver this project,” said Woodfull.
The project implementation will commence in April 2010.
2010-04-06
Sydney, 26 March 2010 (ASX: BVA) – Bravura Solutions Limited (Bravura) - a leading global supplier of wealth management applications and professional services – would like to announce that it has delisted its American Depository Receipts from the International OTCQX.
As of 25 March 2010 (U.S. time) Bravura will no longer be trading on International PrimeQX, opting to focus more closely on its ASX investors.
Bravura will continue to trade as usual on ASX.
2010-03-26
| Bravura implements Babel at J.P. Morgan A.M. | 11/03/2010 |
London / Sydney, 11 March 2010 (ASX: BVA / OTCQX: BRVSY) – Bravura Solutions Limited (Bravura) - a leading global supplier of wealth management applications and professional services, has successfully completed the implementation of Babel, a straight through processing (STP) solution for J.P. Morgan Asset Management in the United Kingdom (UK).
J.P. Morgan is a long-term Bravura client, having previously implemented the Rufus global transfer agency solution. The most recent project employed Bravura’s Babel application to process trades for life funds in J.P. Morgan Asset Management’s Transfer Agency Operation.
Bravura’s Babel is an intelligent STP financial messaging solution. It automates external linkage to a variety of markets and counterparties, using almost any message medium or format. Babel seamlessly adapts to any necessary business logic, directly or via the world’s major platforms and comprises an extensive set of modules that manage different messages and transactions, external connectivity to particular markets and platforms, as well as specific message protocols.
Dan Watkins, Head of European Operations, J.P. Morgan Asset Management, said: “We needed a STP solution for our Life Funds client which also supported the ISO 20022 ViaNova* message format. Our long-standing partner, Bravura, had the products and capability to support complex asset management operations, making them the perfect fit for our requirements.
“The implementation of Babel has extended our STP capacity in the UK and, importantly, supports ViaNova standard instructions.”
Tony Klim, CEO EMEA, Bravura, said: “This is a significant achievement for Bravura and J.P. Morgan.
“It highlights our ability to provide STP solutions for our clients and enable them to introduce operational efficiencies and service improvement to their investors. We are delighted to have worked so closely with J.P. Morgan and helped them to implement another UK STP capability.
“We are also pleased that our widely used Babel product now supports ISO 20022 format trading, which is important in demonstrating Bravura’s ability to fully support our clients’ objectives in the transfer agency market.”
Implementation of Babel at J.P. Morgan Asset Management was completed in 2009 when the company immediately began to receive ‘live’ trades. All milestones were achieved on time and did not impact service to J.P. Morgan’s clients.
2010-03-11
Sydney, 26 February 2010 (ASX: BVA / OTCQX: BRVSY) – Bravura Solutions (Bravura) - a leading global supplier of wealth management applications and professional services to the financial sector – wishes to report its results for the half year period ended 31 December 2009.
CEO of Bravura, Simon Woodfull, said: “Bravura has delivered a respectable result in a difficult sales environment. The highlights of the period were the improvement in EBITDA in the underlying business excluding licence fees of $8.6 million, and a solid operating cash flow of $7.0 million.
“The restructuring of our business during 2009 has also resulted in improved operating margins, positioning us well as our clients recover from the global financial crisis and look to improve their back office efficiency.
“A lengthened sales cycle as well as client budgetary pressures have adversely affected revenue in the short term. However, at the same time our sales pipeline remains healthy. There are considerable opportunities for us in Europe and Asia for both our wealth management and transfer agency products.”
1H10 results summary
- Revenue excluding licence fee income was $47.5 million which on a constant currency basis was broadly the same as the Prior Corresponding Period (PCP)
- Licence fee income significantly impacted by the lengthened sales cycle caused by the Global Financial Crisis. Licence revenue reduced by $13.6 million
- Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $6.0 million, in line with previous guidance
- EBITDA excluding licence fees improved by $8.6 million
- Maintenance revenue improved by $1.0 million compared to 1H09
- Professional services revenue impacted by the postponement of large capital projects by customers as a result of global economic environment
- Net operating cash flow was $7.0 million
- Net debt reduced by $16.6 million
1H10 results summary
Revenue(1) 73.0 53.0 (27.4) EBITDA 11.0 6.0 (45.3) EBITDA excluding licence fees (8.1) 0.5 106 Net profit after tax 2.6 (4.4) (265.7) Net operating cash flow 13.0 7.0 (46.2) Basic EPS (cents) 1.7 (0.7) Net debt (2) 48.7 32.1 Gearing (2) 55% 29%
1. Revenue excludes interest received
Half year ended 31 December
2008A$m
2009 A$m
% change
2. 2008 net debt and gearing calculated based on 30 June 2009
Results overview
Revenue
Bravura achieved revenue excluding interest income of $53.0 million for the half year ended 31 December 2009, representing a decrease of $20.0 million. The lengthening sales cycles due to the global financial crisis caused a number of large IT projects to be delayed thereby reducing licence fees by $13.6 million. Furthermore, demand for associated professional services for data migration and implementation projects was also impacted.
Revenue excluding licence fees in Australia and New Zealand decreased by $1.5 million to $15.4 million, reflecting market caution in committing to new projects in an uncertain economic environment. The key driver of the decrease in Australian and New Zealand revenue was a decrease in client discretionary spend on professional services, as well as the completion of a number of large implementations for Bravura’s Talisman and Garradin wealth management products.
The GTAS acquisition from Citi in Poland has been a successful acquisition for Bravura contributing revenue of $4.9 million for the period - an increase of $4.5 million from the PCP. Overall EMEA revenue increased $1.8 million in Constant Currency.
Revenue in Asia decreased by $2.0 million to $1.6 million as a number of large implementation projects were completed in the period.
Professional services revenue declined by $7.3 million to $23.7 million reflecting the deferring of non-critical projects at a time of economic uncertainty as a result of the GFC and the completion of large implementation projects for Talisman and Garradin. Overall, professional services accounted for 45 per cent of total revenue for the period ended 31 December 2009 compared with 42 per cent in the PCP.
Maintenance revenue increased slightly to $23.5 million. The underlying increase (before currency fluctuations) is attributable to the incremental maintenance revenue from the GTAS acquisition of $2.9 million with the remaining benefit due to the go-live of a number of clients as well as CPI increases on the existing customer base.
Operating costs
Bravura materially improved operating costs in the period with cost management initiatives and efficiency measures delivering a $15.0 million reduction. Bravura regularly monitors its cost base and develops strategies to actively meet client needs, improve margins and provide flexibility.
Bravura continued its extensive R&D program during the period with Company funded expenditure of $4.3 million, a marginal decrease of $0.7 million compared with the PCP. This is in addition to client funded R&D. Continued R&D spending reflects the commitment of the Company to delivering high quality innovative financial software solutions to its clients.
EBITDA
EBITDA for the six months ended 31 December 2009 was $6.0 million, a decrease of $5.0 million compared to the PCP.
The strengthening of the Australian dollar (relative to other currencies) resulted in a foreign exchange translation impact that reduced reported EBITDA for the period by $1.1 million. In addition, the reduction in licence fee sales for the period decreased EBITDA by $13.6 million which was offset by operational savings.
EBITDA excluding licence fees improved by $8.6 million due to restructuring and efficiency initiatives, as well as additional contribution from the GTAS acquisition.
Amortisation, depreciation and financing costs
Amortisation and depreciation expenditure increased by 20 per cent to $0.9 million compared with the PCP. Depreciation increased by $0.3 million to $1.7 million reflecting the commencement of depreciation charges on the EDS data centre. Amortisation increased by $0.6 million as result of the amortisation of intellectual property and business contracts associated with the Poland acquisition.
Financing costs declined by $1.2 million to $1.4 million due to a reduction in net debt as result of the Recapitalisation Proposal, which has been partially offset by higher interest margins on our term and working capital facilities.
Cash flow
Operating cash flow was $7.0 million for the six months ended 31 December 2009 compared to $13.0 million in the PCP. The decline in licence fees impacted operating cash flow for the period, however, a focus on working capital management provided a $5.5 million benefit. Net profit after tax is impacted by a number of non-cash items and items reclassified to financing activities.
The Company continued to re-invest proceeds from operating activities back into the business with some proceeds being used to partially fund the third tranche of the GTAS acquisition deferred consideration.
Dividend
An interim dividend will not be paid for the six months ended 31 December 2009.
The board will consider the dividend policy in light of the continuing economic outlook, and the Company’s cash flow requirements including the final tranche of US$7.0 million to be paid to Citi for the GTAS acquisition in December 2010.
Balance sheet
The Company’s financial position remains strong with total assets of $194.8 million and shareholders’ funds of $111.1 million as at 31 December 2009.
The significant reduction in current liabilities primarily relates to the repayment of Bravura’s working capital facility and the settlement of the foreign exchange contract net of additional working capital draw downs. In conjunction with the Rights Issue the Company’s borrowing facilities were realigned to match to its geographical earnings profile, improving the Company’s natural hedge and reducing risk for shareholders.
Bravura remained in compliance with all its banking covenants as at 31 December 2009.
Outlook
Traditionally, Bravura’s performance is skewed toward the second half of the financial year with respect to both revenue and earnings. The current financial year is expected to be similar, and given that the recovery from the GFC is still in the early stages and not uniform across Bravura’s markets, we are expected to see ongoing difficulty in the level of confidence we may have in these circumstances.
The primary business objectives for the second half of FY2010 are to drive revenue growth and improve EBITDA margins. There are currently no expectations for any significant non-recurring items to adversely impact the current year’s results.
2010-02-23
Sydney, 23 February 2010 (ASX: BVA / OTCQX: BRVSY) – Bravura Solutions Limited (Bravura) - a leading global supplier of wealth management applications and professional services - wishes to announce senior leadership changes made today that will allow Bravura to better take advantage of the global economic recovery.
Mr Brian Mitchell, currently a Non-executive Director of Bravura, will replace Mr Neil Broekhuizen as Chairman of Bravura. Mr Mitchell has over 30 years experience in the IT industry. Most recently he was Senior Vice President, Oracle Asia Pacific, responsible for growing Oracle's expanding software and services activities throughout the region. He previously held the position of Managing Director, Oracle Australia and New Zealand.
Mr Broekhuizen, currently Interim Chairman of Bravura said: "On behalf of Bravura’s shareholders, I am delighted to hand over the Chair to someone of Brian’s experience and leadership skills.”
Mr Mitchell said: “I’m very pleased to be appointed as Chairman of Bravura and look forward to driving Bravura’s development as a leading global supplier of software and professional services to the wealth management industry”.
In addition to the appointment of Mr Mitchell, Mr Simon Woodfull, currently Group CEO and Director – Operations will be assuming full responsibility as sole Group CEO. Mr Woodfull’s remuneration remains unchanged from its current status.
Mr Iain Dunstan has resigned from his role of Group CEO and Managing Director and we wish him well for the future.
Mr Woodfull said: “I have seen Bravura grow rapidly since it was established six years ago, and I am confident that we are well placed to capitalise on the large number of global sales opportunities in our pipeline. I am very excited to be in a position to continue this growth and create value for our shareholders.”
2010-02-23
| Bravura and Calastone sign partner agreement | 17/02/2010 |
Sydney / London, 17 February 2010 (ASX:BVA / OTCQX:BRVSY) - Bravura Solutions Limited (Bravura) – a leading global supplier of wealth management applications and professional services – is pleased to announce an affiliation with Calastone Limited (Calastone), which will give Bravura’s clients direct connectivity to Calastone’s live messaging service and transaction network.
Calastone is an independent cross-border messaging network for the mutual fund industry, automating key business flow processes and delivering Straight Through Processing (STP) efficiencies throughout the entire lifecycle, from mutual fund trading, through to settlement. Developed using the latest Microsoft© technologies, Calastone provides clients with the ability to view their transactions online, in real-time, through an execution management system.
Tony Klim, Bravura’s Chief Executive Officer – EMEA said: “We are extremely pleased to be working with Calastone. This collaboration will enable our clients to achieve the full benefits of STP with Calastone’s distribution clients. The initial deployment supports order messages and will enable our clients to process trades electronically from the Calastone network”.
“We can now provide a cost effective solution to our clients wishing to connect to the Calastone transaction network, building further on our leading position as a provider of STP financial messaging through Bravura’s Babel software application.”
“The relationship with Calastone demonstrates our commitment to working with leading industry parties, seeking out value added services on behalf of our clients.”
Kevin Lee, Calastone’s Managing Director said: “We are pleased to partner with Bravura. Both Bravura and Calastone clients are able to remove manual order entry processing, which will reduce costs and risk, and provide greater visibility and control of order routing”.
2010-02-17
| Bravura wins second contract with Bao Viet | 02/02/2010 |
Bravura Solutions and SSP sign five-year deal with Bao Viet Insurance Corporation
Sydney/London, 2 February 2010 (ASX: BVA / OTCQX: BRVSY) - Bravura Solutions Limited (Bravura) - a leading global supplier of wealth management applications and professional services - today announced that it has executed an agreement with Bao Viet General Insurance Corporation (BVGI) in Hanoi, Vietnam, in conjunction with SSP - a global provider of insurance technology. This is SSP's first client in Vietnam.
The agreement includes the licence and implementation of SSP's general insurance administration solution, InsureJ, and is worth approximately A$4.4 million over the initial five-year term.
Once fully implemented, the application will support more than 2,500 employees that service over 10 million individuals and corporations, and will be integrated with Bravura's life insurance application, TalisLife, currently being implemented at Bao Viet Life Insurance Corporation.
Designed to replace legacy technology, SSP's InsureJ is a component-based system which consists of several independent pure Java EE service-oriented architecture (SOA) components, which give insurers unprecedented freedom to integrate with other systems. Implementing InsureJ will allow BVGI to streamline current processes, rapidly launch new products and improve customer service.
Mr Alan Royal, Chief Information Officer for Bao Viet Holdings, said: "We selected InsureJ after a comprehensive search and assessment process. The InsureJ solution is very flexible, scalable and cost-effective, and will empower the integration of our life and general insurance businesses. Deploying two highly respected solutions across the businesses will enable us to automate and streamline our processes and improve our efficiency.
"With the market continuing to develop rapidly we must respond quickly, so functionality and system flexibility were key considerations. Equally, we needed the support of experienced partners such as Bravura and SSP, both with strong reputations for delivering world class solutions - we look forward to working closely with these two organisations.
"This is another significant step forward in our modernisation strategy and will provide us with a solid IT infrastructure to support our future growth," said Mr Royal.
Mr Simon Woodfull, Group CEO and Director - Operations at Bravura said: "The agreement with BVGI follows Bravura's selection by Bao Viet Life Insurance Corporation to implement TalisLife, our life insurance solution, and reinforces our position as a major solutions provider in the insurance sector and an increasing presence in the Asian market."
Mr Michael Clarke, MD, Asia Pacific for SSP said: "It is pleasing that not only has BVGI identified InsureJ as the best IT solution for their needs, but also recognised the importance of the support of IT providers that have the market knowledge and capabilities to support the next phase of their development. We look forward to working closely with Bravura and BVGI."
BVGI is one of the oldest general insurance companies in Vietnam and has grown to become one of the largest general insurers in this rapidly developing market through its focus on delivering excellent customer service. BVGI recognised that replacing its existing general insurance system(s) was key to meeting the increasing demands of its customers.
The implementation at BVGI is expected to commence in February 2010.
2010-02-02
| Bravura opens Warsaw office | 20/01/2010 |
London / Sydney, 20 January 2010 (ASX: BVA / OTCQX: BRVSY) - Bravura Solutions Limited (Bravura) - a leading global supplier of wealth management applications and professional services, has relocated its Central and Eastern European operation to a new office in Warsaw, Poland as part of the company's expansion in Europe. The new office at Deloitte House will accommodate employees from its existing Warsaw GB Software House and assist Bravura's increasing footprint in the region.
Planned over a six month period, the relocation project involved 50 employees who joined the company following Bravura's acquisition of the GTAS division from Citi in November 2008. The new office will also accommodate anticipated growth to Bravura's Polish employee base.
Tony Klim, CEO - EMEA at Bravura, said: "Our new Warsaw facility plays an important role in Bravura's global development, as well as providing additional support for a variety of products. Creating strong operational foundations in Poland allows us to work more closely with European clients, capitalise on opportunities in the developing Central and Eastern European financial markets and create a robust development and support base for Bravura's global operations.
"Our operations in the region so far have proven to be extremely successful and have expanded rapidly in the last year, gaining the respect and interest of those in the financial services industry. It is our intention to build further on this success".
Bravura's Warsaw operations, together with those in the United Kingdom and Luxembourg form a powerful presence in markets that have strong predicted growth in the coming years.
The new Polish centre offers contemporary office facilities with state-of-the-art, secure development and testing environments.
2010-01-20
