Bravura Solutions (BVS) H2 2024 earnings summary

Executive summary

• FY2024 EBITDA reached AUD 25.8 million, exceeding upgraded guidance, with cash EBITDA of AUD 10 million and revenue of AUD 250.4 million, all showing significant year-over-year improvement.

• Annualised gross cost reductions totaled AUD 67 million, with AUD 15 million delivered in 2H24, supporting margin improvements and a return to profitability.

• Cash balance increased to AUD 90 million as of June 30, 2024, up AUD 14.3 million, supporting proposed capital returns and a new AUD 20 million on-market buyback.

• Transformation strategy completed, focusing on realigning the business, improving technology, and building a high-quality, growth-oriented platform.

• Adjusted NPAT was AUD 8.8 million, up AUD 31.9 million year-over-year, reflecting restructuring and cost management.

Financial highlights

• FY2024 gross revenue was AUD 250.4 million, up 0.3% year-over-year; EBITDA increased by AUD 26.1 million to AUD 25.8 million; cash EBITDA rose by AUD 37.8 million to AUD 10 million.

• Net cash position at June 30, 2024, was AUD 90 million, with net cash operating inflow of AUD 30.2 million.

• NPAT of AUD 8.8 million, a turnaround from a loss in FY2023; operating expenses reduced by AUD 40.6 million (14.8%).

• Depreciation and amortisation decreased by 54.2% due to lower amortisation from impaired assets and lease savings.

• All FY2024 expiring contracts were renewed with improved economics.

Outlook and guidance

• FY2025 EBITDA guidance is AUD 36–40 million (up to 55% increase), and cash EBITDA guidance is AUD 28–32 million (up to 220% increase).

• FY2025 revenue expected to decrease to AUD 235–240 million due to removal of one-off license fees and lower professional services fees.

• Focus in FY2025 is on building a platform for revenue growth, further improving profit margins, and continuing cost reduction initiatives.

• Board intends to resume dividend payments once sustained profitability is achieved.

• Further profitability improvements anticipated from full-year impact of cost savings and targeted reductions.