Bravura H1 results above IPO forecasts
28 February 2017 | 1675 views | 0
Bravura Solutions Limited (ASX:BVS, Bravura) a leading provider of enterprise software, installed and hosted, for the wealth management, life insurance and funds administration industries – today announced its half year results for the period ended 31 December 2016.
• H1 2017 operating EBITDA exceeds H1 IPO forecast
o Group H1 operating EBITDA of $18.2 million exceeding IPO prospectus forecast H1 operating EBITDA of $17.7 million1
o Operating EBITDA Margin 19.5% versus 13.1% prior comparative period (pcp)
o Cash balance of $23.1 million as at 31 December 2016 and no debt
• Significant Wealth Management Segment revenue growth
o Wealth Management revenue was $57.8 million an increase of 10.0% based on actual currency and 19.5% on a constant currency basis2 versus pcp
o Sonata Revenue now accounts for 72.6%, or $41.9 million, of Wealth Management revenue, representing an increase in Sonata revenue of 19.5% based on actual currency, and 33.4% on constant currency basis2 versus pcp
• Sustained Funds Administration Segment revenue growth
o Funds Administration Revenue was $35.7 million, an increase of 3.3% versus pcp on a constant currency basis2
o Funds Administration operating EBITDA margin 48.2% versus 44.7% pcp
• Market demand for Bravura’s products continues to be strong
o New major Australian and UK Sonata clients signed in H1 2017
o Two new Funds Administration SaaS sales completed in H1 2017
o Completed new Australian sale of Garradin - a complete private wealth and portfolio administration solution
o Sales pipeline remains strong with no visible impact from BREXIT (other than FX translation)
o Strong and growing Wealth Management segment revenue driven by existing and new clients
Bravura Chairman, Brian Mitchell said: “Strong performance in our first half year result since re-listing on the ASX is pleasing, with operating EBITDA outperforming forecasts for H1 2017. Bravura remains on track to deliver the guidance provided in its 2016 IPO prospectus for the full year 2017 financial year. Brexit is having no visible effect on UK sales (other than FX) with our UK business continuing to be strong, as evidenced by a large UK sale in H1 2017.”
Bravura CEO, Tony Klim said: “Strong market tailwinds and a large addressable market continue to drive the take up of our services in H1 2017 across Wealth Management and Funds Administration Segments. The many challenges faced by our clients globally including, complex regulatory change, demand for mobile and self-directed technology, rapid product innovation, cost and margin pressures, and the need for scalable technology plays directly into the hands of our flagship offering Sonata. The $100 million invested in Sonata and ongoing investment continues to attract clients across the geographies and markets in which we operate to help address these issues and give them a competitive edge.”
Group Results Overview
Strong H1 2017 financial performance and an improvement in operating EBITDA margin has resulted in Bravura exceeding forecasts in the IPO prospectus.
Revenue was driven by significant new client wins in H1, and growth in revenue from existing clients. The total number of Sonata clients at H1 2017 was 18, following two new client wins in the period. Group pro forma revenue was $93.5 million, up +12.8% versus the pcp on a constant currency basis2, and -1.4% on actual currency basis.
Group operating EBITDA of $18.2 million was achieved in H1 2017, exceeding the IPO prospectus forecast of $17.7 million1, and represented an increase of +97.1% versus pcp on constant currency basis2.
Pro Forma NPAT was $12.6 million, up +199.5% versus pcp on constant currency basis2.
As at 31 December 2016 Bravura had cash balance of $23.1 million, and nil drawn debt.