BVS Announces H1FY19 Results: Full-year 2019 Guidance Revised Upwards

  • Feb 27, 2019 AEDT
  • Team Kalkine
BVS Announces H1FY19 Results: Full-year 2019 Guidance Revised Upwards

Software Products and Services company, Bravura Solutions Limited (ASX: BVS), announced a strong set of H1FY19 numbers. In the first half of FY19, the company reported revenue growth of 24%, EBITDA growth of 28% and NPAT growth of 15%.

Key Highlights:

  • Group 1H19 revenue increased by 24% to A$127.4m Vs. A$102.9m in 1H18.
  • Group 1H19 EBITDA increased by 28% to A$23.8m Vs. A$18.5m in 1H18.
  • Group 1H19 NPAT increased by 15% to A$16.3m Vs. A$14.2m in 1H18.
  • Group 1H19 EPS increased by 15% to 7.6cps.
  • An Interim unfranked dividend of 5.3cps. 

Commenting on the results, Mr. Klim, CEO of the company, highlighted that the strong set of numbers were witnessed across all key markets. The company’s recurring revenue was up by 31%, which comprised 72% of the total revenue. The company witnessed significant activity from the existing clients as they extended their business reach by licensing and implementing more of Sonata’s products. The CEO also stated that the company saw strong performance from the Funds Administration business due to increased implementation and development work and the company. The company in its report highlighted that the significant recurring revenue base had provided a high degree of certainty for the company’s long-term earnings profile and future cash flow expectations.

Bravura Solutions Limited reported a healthy performance of its Wealth Management business. The revenue increased by 24% to A$90.4m in 1H19, up from A$72.8m. The EBITDA came in at A$29.4m in 1H19, up from A$21.6m in 1H18. The company underpinned the segments growth to two new Sonata contracts and increasing demand from existing clients.

The growth in Wealth Management Business came with a good EBITDA margin expansion, with the margin expanding from 30% in 1H18 to 33% in 1H19.

The Company also reported a healthy set of numbers for its Funds Administrative segment, the revenue increased by 23% to A$37.0m in 1H19, up from A$30.1m in 1H18. The segment benefited from increased implementation and development work stemming from a renewed and enhanced contract with a significant global client.

The company in its release stated that the SaaS (Software as a Service) offering is witnessing opportunities for growth in the European market.

Highlighting on the market outlook, the company’s report stated that it had witnessed strong sales pipeline across its key market and across geographic regions, and the company is expecting good sales visibility over a 12- to 18-month period.

Outlook:

The management has revised the forecast EPS growth to mid to high-teens; this comes on the back of strong demand that the company has witnessed across segments in 1H19.

Stock Information:

BVS share price was up by 2.823% on the ASX, settling the day’s trade at A$5.100 on Wed 27 Feb 19. The share price has moved up by around 35% in the last three months.

Bravura Solutions’ (ASX: BVS) market capitalization stands at $1.06 billion. The Stock has noted the 52-week low price of A$ 2.080 and the 52-week high price of A$5.680. The company has a PE of 38.150 and EPS of 0.130 AUD.


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