Bravura suffers another setback, CEO steps down

Bravura has announced Libby Roy will step down as CEO and managing director effectively immediately, remaining with the company until 30 June for handover and transition purposes.

As such, the board confirmed in a statement to the ASX it has commenced a global external executive search for a “high calibre and experienced” company lead.

In the meantime, independent non-executive director Andrew Russell is set to be interim CEO until a replacement is found, with a total annual remuneration including base salary and superannuation of $750,000.

Commenting on the transition, Bravura chairman Matthew Quinn said: “Bravura has deep intellectual property, market leading products and a valued, high quality customer base. Our new CEO will be selected based on their ability to provide exceptional service to our customers, lead our talented employees and create value for shareholders”

“We thank Libby for her time as CEO,” Mr Quinn added.

Bravura announced last June CEO Nick Parsons would step down in August 2022, with Ms Roy to take on the position from that date.

Mr Parsons was only confirmed as CEO for the company in August 2021 when he replaced long-time head Tony Klim.

“I have every confidence that Libby will champion the needs of clients, employees and shareholders into the future,” Bravura chairman Neil Broekhuizen said on the occasion of her appointment.

Ms Roy’s departure comes at a precarious time for Bravura, with the firm having announced in March its wealth management division suffered a 7 per cent decrease in revenue to $77.3 million and an 84 per cent drop in EBITDA to $3.2 million during the first half of FY23.

According to the company, which owns financial planning software provider Midwinter, the drop was mainly attributable to the impact of foreign exchange and a decline in non-recurring licence fees. Meanwhile, funds administration revenue fell 21 per cent to $41.1 million, alongside a 41 per cent drop in EBITDA to $15.0 million.

Moreover, Bravura reported an overall net loss of $190.9 million for the half, down from a net profit after tax (NPAT) of $15.3 million in 1H22.

“The first half was undoubtedly a difficult period with our performance impacted by a number of operational and market-related challenges,” Ms Roy said at the time.

“However, after conducting a wide-ranging strategic review of our business and having taken some tough but necessary decisions, I believe we now have a plan in place that will allow us to better manage and monetise our suite of high-quality, mission-critical products and build on our strong customer base.”