The Bravura cost-out restructure has been achieved with “lower costs and faster time” than initially expected, CEO Andrew Russell said as the firm releases its FY24 results.
The technology firm has been implementing a cost-out restructuring of the business with two aims of “reset and energise”, as well as “accelerating financial performance”. This includes areas such as rebuilding client trust and shareholder reputation, building a product-focused capability, and delivering a lower cost to serve.
During the year, it has enacted changes such as appointing chief executives in APAC and EMEA, renewing APAC contracts for products, a new KPI framework for employees, and a focus on wealth management.
This allowed the firm to return to profitability earlier than expected, with an adjusted net profit after tax (NPAT) of $8.8 million for FY24.
Speaking on a shareholder webinar, chief executive Russell said: “We have transformed the business at a fast pace and have rebuilt the foundations of a quality business to now explore revenue growth opportunities.
“The cost to execute our transformational organisation has been lower than forecast and the pace to execute has been faster. This has enabled the business to return to profitability prior to expectations.
“We are still in the process of rebuilding trust with our clients, and we appreciate we have more work to do. We are listening to and engaging with our clients regularly regarding the changes and seeking their feedback on how we can be a better partner to them.”
Russell was appointed as chief executive in July 2023, having previously served as interim chair at the technology business. Prior to joining Bravura, he was the CEO at Class Limited.
Looking ahead of what further cost-outs can be enacted in FY25 and FY26, he said the plan is to grow cash EBITDA to $28–32 million in FY25, up from $10 million in FY24.
“We have had the low-hanging fruit and brought it back to the right size relative to our revenue lines and now the management is exploring the next level.
“We think we can get more efficiency out of the business when you benchmark against our world-class peers, we’ve got some optimisation work to do, and we will run the ruler over other big-ticket items such as our premises across the globe.”
No dividend was declared in order to allow the firm to continue to stabilise and generate free cash flow.
