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Bravura Solutions Limited first quarter cash flow 30 September 2007
30 October 2007 Bravura Solutions Limited first quarter cash flow 30 September 2007 Sydney, 30 October: Bravura Solutions Limited (Bravura, ASX: BVA) – a leading global supplier of wealth management applications and professional services – wishes to update Investing and financing activities Foreign currency hedging Outlook for second quarter
investors on cash flows for the three month period ended 30 September 2007.
Operations
Net operating cash out flow for the quarter was $5.0 million. Significant impacts on operating cash flow in the quarter included:
Receipts from customers increased 18 per cent on the previous quarter to $30.6 million, however, this was offset by increased working capital in the quarter. This was primarily due to a $5.0 million decrease in creditors for final payments made to the Bank of New York Mellon for premises and transitional services.
The Rufus Software business is now independent from the Bank of New York Mellon premises and no longer requires these transitional services.
As previously announced to the market, Bravura has incurred significant upfront costs in relation to scoping and implementation for large strategic contracts with New York Life International and Friends Provident.
As at 30 September 2007, accrued revenue relating to these projects, and work completed for the Bank of New York amounted to $15.0 million. A considerable proportion of this accrued revenue is expected to be received in the second quarter of 2008.
Bravura has maintained its ongoing commitment to its upgrade path for the Sonata and Talisman wealth management application suites, spending $2.0 million in the current quarter.
Bravura drew down an additional $9.4 million under its loan facilities. $7.4 million was used for non-operating activities including final payments for the fit out relating to the new London premises at Austin Friars.
Previously deferred payments in relation to acquisitions were also incurred.
Exposure to both the Pound and Euro are reduced due to the natural hedge which occurs as a result of operations in each market. The Company has put in place foreign exchange forward contracts, enabling current US dollar denominated receipts to be converted to Australian dollars at a rate of 78.56 cents.
Bravura anticipates positive net operating cash flow for the second quarter is expected to be above $15 million. This will enable the Company to achieve a positive net operating cash flow for the half year statement.
Resources are being heavily utilised for the Perpetual and Friends Provident projects, with expected phases due to go live in the second quarter with relevant milestones to be met.
