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Bravura Solutions announces continued positive cash flows in the third quarter
01 May 2008 Bravura Solutions announces continued positive cash flows in the third quarter Sydney, 30 April 2008: Bravura Solutions Limited (Bravura, ASX: BVA) – a leading global supplier of wealth management applications and professional services – wishes to update investors on cash flows for the quarter ended 31 March 2008. Operations Investing and financing activities A payment of $3.3 million was also made to acquire a suite of sophisticated data migration tools. These tools will assist to efficiently and effectively undertake the large number of data migration projects anticipated following the Sonata suite upgrades. Bravura drew down a net additional $2.2 million under its loan facilities during the quarter, with $1.9 million used to fund a deferred payment arising from the acquisition of AB Prodata in December 2006. Debt levels Strong outlook for fourth quarter
Bravura experienced continued positive net operating cash flows of $1.5 million for the third quarter. This is the second consecutive quarter in which Bravura has reported a positive net operating cash flow, resulting in strong net operating cash flow of $10.9 million for the six months ended 31 March 2008. Significant events impacting operating cash flow for the quarter included:
The volume of receipts from customers continued to be strong with $34.4 million collected in the quarter. This was achieved despite trade receivables increasing by $5.5 million as a result of several large receivables in the UK. Much of this has subsequently been collected.
Accrued revenue relating to four major projects remained unchanged from the previous quarter at around $15.0 million. $4.0 million of accrued revenue recognised at 31 December 2007 was received during the March quarter.
Bravura has maintained its ongoing commitment to upgrading the Sonata and Talisman suites, spending $4.3 million for the quarter, up from $1.6 million in the second quarter.
Bravura made a final payment of $2.3 million relating to the build and fit out of the new data centre in London.
The net debt level as at 31 March 2008 is considered conservative at $25.9 million.
Strong cash receipts continued in the first two weeks of April with in excess of $6.1 million received from customers. A considerable proportion of the $15.0 million of accrued revenue is expected to be received during the final quarter of FY2008. Consequently, Bravura anticipates continued strong positive net operating cash flow for the remainder of the 2008 fiscal year.
