Bravura’s capital raise necessary after worrying half

Mike Taylor

Managing Editor/Publisher, Financial Newswire

7 March 2023

At the same time as Bravura Solutions moved to initiate an $80 million capital raising the company’s first-half results explained the company’s challenges, not least a 10.6% decline in revenue and 206.1% decline in net profit after tax.

The bottom line for the company was a decline of $30.3 million in NPAT to negative $14.2 million and with guidance for the full financial year of an adjusted NPAT of negative $19 million to $24 million.

Explaining the result, the company’s investor presentation said around half of the first-half revenue decline related to one-off licence fee revenue recognised in the first half of 2022.

As well, it said that operating and corporate costs increased due to higher wages and investment in key delivery resources across APSC and EMEA.

However, the company outlined its organisational change program to drive operational improvement, stating it had a clear plan focused on core product capabilities and enhancing efficiency.

It references “four levers to improve performance” – product strategy, optimising the operating model, improving productivity and reducing external costs.

It also pointed to its changed management team under new chief executive, Libby Roy and a refreshed board.