Bravura cutting hard to return to profit

FY23 was a year of underperformance and great disappointment for shareholders, according to the chair of Financial services technology company, Bravura, Matthew Quinn.

Outlining the impacts on the company flowing from its battered balance sheet, Quinn said that the underperformance had led to major changes on the board, including his appointment as chair in June and subsequently changes to the management team with the appointment of Andrew Russell as chief executive.

He said the company had already taken swift and decisive action to stem the losses and get back to profitability describing Bravura as “a fundamentally good business with a very strong base of blue-chip clients, great technology and talented employees”.

Quinn told the AGM that changes to the board were essential to ensure Bravura had the right mix of skills and experience to take the company forward.

Bravura chief executive, Andrew Russell told the meeting that Bravura’s cost base had been “way too high” and that it transformation had already generated $25 million in gross annualised expense reductions.

He said that the management had identified a further $22 million in annual gross cost out savings.

Russell said this represented an additional $7 million to the $15 million forecast in Bravura’s August full-year results and that, consequently, in FY25 there would be a full-year realisation of $47 million gross cost out savings, with total cost to achieve those savings at $22.6 million over FY23 and 24.

Russell said the company was forecasting that revenue would remain resilient at around $250 million and that the priority was return to profitability in FY24 and forecast an EBITDA range of $10 million to $15 million.