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.

• Cash balance increased to AUD 90 million, further boosted by GBP 24 million from a new Fidelity partnership, supporting a proposed capital return of up to AUD 75.3 million and a new AUD 20 million on-market buyback, both subject to approvals.

• Transformation strategy completed, focusing on realigning the business, improving technology, and building a high-quality business, setting the stage for future growth.

• Annualised gross cost reductions totaled AUD 67 million, with AUD 15 million delivered in 2H24, and headcount reduced by approximately 20% year-over-year.

• Adjusted NPAT was AUD 8.8 million, a turnaround from a significant loss in FY2023, reflecting the impact of restructuring and cost management.

Financial highlights

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

• Net closing cash at AUD 90 million, up AUD 14.3 million; net cash operating inflow AUD 30.2 million, up AUD 35.7 million.

• NPAT of AUD 8.8 million, a AUD 289.2 million improvement year-over-year; adjusted NPAT also AUD 8.8 million, up AUD 31.9 million.

• Operating expenses reduced by AUD 40.6 million (14.8%) year-over-year, with significant reductions in headcount and occupancy.

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

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

• Further profitability improvements anticipated, driven by full-year impact of cost savings and additional targeted reductions.

• Focus in FY2025 is on building a platform for revenue growth, rebuilding client trust, and resuming dividends once sustained profitability is achieved.

• Revenue growth expected to resume in FY2026, driven by both existing and new clients.