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Bravura Solutions announces strong second quarter cash flows
24 January 2008 Bravura Solutions announces strong second quarter cash flows Sydney, 24 January: 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 December 2007. Receipts from customers increased 43 per cent on the previous quarter to $43.9 million. The increase in cash collected from customers reflected both the unwinding of significant amounts of accrued revenue and the signing of two large contracts with significant up front licence fee components. Whilst significant amounts of accrued revenue were converted to cash, these were replaced with accrued revenue attributable to new contracts signed in the quarter. As a result, ‘Trade and Other Receivables’ remained virtually unchanged, reflecting the strong new business pipeline. Bravura has maintained its ongoing commitment to its upgrade path for the Sonata and Talisman wealth management application suites, spending $2.7 million for the quarter. Bravura paid a fully franked dividend of $1.3 million to ordinary shareholders in October 2007. Investing and financing activities Debt levels As previously stated, strong cash receipts continued in the first week of January 2008 with in excess of $6.0 million received from customers.
Operations
Bravura experienced strong positive net operating cash flows of $9.4 million for the quarter, with a further $6.0 million being received on the first business day of January. Accordingly, it is anticipated that Bravura’s net operating cashflows will exceed consensus net profit for the half year ended 31 December 2007. Significant events impacting operating cash flow included
Furthermore, working capital requirements slowed significantly due to completing the transition of acquisitions.
As at 31 December 2007, accrued revenue relating to four major projects remained around $15.0 million. A considerable proportion of this accrued revenue is expected to be received in the second half of FY2008.
Bravura drew down an additional $6.4 million under its loan facilities during the quarter ended 31 December 2007. $1.8 million was used for non-operating activities, including the build and fit
out of a new data centre to house the servers operated by Bravura on behalf of its clients. The data centre will lead to reduced implementation costs for new clients going forward.
The net debt level as at 31 December 2007 was an undemanding $18.0 million, which equates to approximately 0.65 times the projected FY2008 EBITDA.
Continued strong cash outlook for third quarter
Bravura anticipates continued positive net operating cash flow during the third quarter.
Furthermore, a major project currently being worked on is due to go live freeing up additional resources for new projects and should lead to improved margins going forward.
Bravura’s half year financial report is due to be released on 26 February 2008.
