Bravura Solutions announces continued strong cash flows for fourth quarter

30 July 2008 Bravura Solutions announces continued strong cash flows for fourth quarter

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 30 June 2008.

Operations

Bravura experienced continued strong positive net operating cash flows of $1.02 million for the fourth quarter. This is the third consecutive quarter that Bravura has reported a positive net operating cash flow, resulting in a combined net operating cash flow of $11.9 million for the nine months ended 30 June 2008. Significant events that impacted operating cash flow for the quarter included:

• Increase in receivables
  
  The $44.3 million of customer receipts collected in this quarter was $10.0 million more than last quarter and surpassed that of all previous quarters.
  
  Accrued licence revenue increased by $4.5 million as a result of several Australian licences signed in June.
• Ongoing R&D commitment
  
  Bravura has maintained its ongoing commitment to upgrading its product platforms, spending $3.0 million in the quarter and resulting in an investment of $12.0 million for FY08.

Investing and financing activities

Bravura made a deferred payment of $13.4 million to the Bank of New York Mellon, arising from the December 2006 acquisition of the Rufus Software business. Of this amount, $11.1 million was financed by the term debt facility.

Bravura made an additional final payment of $0.9 million for the build and fit out of the new data centre in London.


Debt levels

The net debt level as at 30 June was $40.3 million, of which $33.1 million related to acquisitions funded under the term facility and $7.2 million related to working capital under the revolving facility.


Strong outlook for first quarter FY09

Overall, Bravura anticipates continued strong positive net perating cash flow for the 2009 fiscal year.