Bravura Solutions has described the last financial year as a “year of underperformance and great disappointment” and has committed to rebuilding trust, starting with a refreshed board.
In its full year FY23 results, the technology solutions firm saw a 6.4 per cent decline in group revenue, down from $266.6 million in FY22 to 249.6 million in FY23.
This was driven by less project work and upgrades in its wealth management space.
Bravura saw a $280.7 million loss in group net profit after tax (NPAT), a substantial 1,038 per cent decline from its $29.9 million NPAT in FY22.
It reported a 117.8 per cent decline in earnings before interest, taxes, depreciation and amortisation (EBITDA) to an $8.1 million loss in FY23. This was a decrease from $45.3 millon in FY22.
Bravura’s wealth management revenue declined by 3.5 per cent from $169.5 million in FY22 to $163.6 million.
Moreover, funds administration revenue saw an 11.4 per cent decrease to $86 million, compared to $97.1 million in the previous financial year.
In July, it appointed Andrew Russell as chief executive, marking its third CEO in three years after the departure of Libby Roy in mid-June, who had less than a year in the role.
In a joint message with chairman Matthew Quinn, Russell said: “FY23 was a year of underperformance and great disappointment for our shareholders, and we acknowledge it will take time to rebuild trust.
“Similarly, it has created uncertainty and concern for our people and our customers and over the next few months, we will communicate openly with all stakeholders to update you as we stabilise the company, restore it to profitability, and rebuild value.”
Russell added that Bravura is “making progress” on resetting the business to ensure a profitable future by the end of FY24.
According to the CEO, the firm’s cost base is too high with employment costs being the largest expense.
The company’s operating expenses rose from $221.3 million to $257.7 million in FY23.
Looking ahead, the firm will be finalising its three-year strategic plan over the coming months to present to stakeholders in late October 2023.
In its turnaround plan, Bravura has also announced a refreshed board joining in the second half of FY23. It will welcome Sarah Adam-Gedge as an independent non-executive director and chair of the audit and risk management committee, and a member of the human resources committee.
Damien Leonard has been named as a non-executive director.
Adam-Gedge holds extensive global experience leading professional services, consulting, digital electronics and information technology organisations. Previously, she held leadership roles at PwC and Arthur Andersen.
Meanwhile, Leonard will join the company’s human resources committee and will bring his strong expertise in strategic advice to the role. He was appointed president of Pinetree Capital in 2020, and holds over a decade of public markets investing experience.
