Bravura posts $8.8m profit amid business ‘reset’

In a filing to the ASX on Wednesday, the company said it posted a group net profit of $8.8 million in FY2023–24 after suffering a loss of $280.7 million in FY22–23.

Its adjusted net profit after tax was an equal $8.8 million, up $31.9 million compared with FY22–23.

Bravura said its total gross revenue was slightly ahead in 2024, rising to $250.4 million compared to $249.6 million in the year prior. Wealth management revenue dipped from $163.6 million in FY22–23 to $163.1 million, while funds administration revenue rose from $86 million to $87.3 million.

Commenting on the group performance, Andrew Russell, group chief executive officer and managing director said: “Given the scale and pace of our transformation, the overall business has returned to profitability in FY24, with a cash EBITDA of $10 million, up $37.8 million on FY23, and a growing cash EBITDA margin heading into FY25.”

Looking forward, Bravura said it expects its cash EBITDA to grow to $28–$32 million in FY24–25, adding that the company is “stable, well capitalised, and profitable”.

“We have announced a capital management strategy. This comprises a proposed capital return of up to $75.3 million, an on-market buyback of $20 million and an intention to reinstate dividend payments once sustained profitability has been achieved,” the firm said.

FY24–25 revenue, however, is expected to reduce compared to FY23–24 due to the removal of one-off licence fees and reduction in project revenue, while cost reduction initiatives are expected to continue.

Elaborating on its future during a webcast on Wednesday morning, Russell said Bravura has “reset the business” and positioned it to grow with existing clients.

Alongside its results, Bravura also announced it intends to conduct an on-market buyback of its ordinary shares of up to $20 million as part of its capital management strategy.

The buyback will be funded from existing cash and the proceeds of Bravura’s agreement with Fidelity International announced earlier this month.

Namely, at the time, Bravura said it has signed an agreement granting Fidelity International access to use and develop the Sonata software platform used by Fidelity for a one-time payment of £29 million before tax and costs.

The agreement grants Fidelity a perpetual, non-exclusive, non-transferable, non-sublicensable licence to use the software making up Fidelity Sonata, as well as rights to use and develop Fidelity Sonata solely for Fidelity’s business purposes.

At the time the deal was inked, Russell said: “This milestone agreement allows Fidelity to continue to leverage best-in-class technologies while allowing us to streamline and simplify our enterprise Sonata software platform for the betterment of our other existing and new enterprise wealth clients.

“Fidelity is a key client of ours and one we are excited to work closely with in the future.”

Russell was appointed CEO of Bravura in July last year and is the firm’s third chief executive since 2021.

At the time, Matthew Quinn, independent non-executive chairman, said: “We are very pleased that Andrew has agreed to become CEO of Bravura.

“Following an extensive search process, it is clear to the board that Andrew is the best candidate for the role and he has already demonstrated great leadership whilst acting as interim CEO. We are confident that Bravura has a very bright future with Andrew as CEO.”

Bravura added at the time that Russell’s total fixed remuneration will be $750,000, with the addition of a 33 per cent short-term incentive plan and a one-off of 2.5 million options with a three-year vesting period.