Bravura’s NPAT 22% up
Bravura Solutions has reported a 22% growth in net profit after tax (NPAT) to $40.1 million for the period ended 30 June, with the acquisitions of Midwinter and FinoComp made during this period delivering net profit after tax of $3 million.
The figure came despite wealth management FY20 EBITDA margin falling to 29.3% from 30.5% in FY19 as a result of lower licence fees of $7.9 million versus $10.4 million a year before.
The group’s revenue went up by 6% to $274.2 million and the firm declared unfranked final dividend of 5.5cps, bringing the full-year payout ratio to 67% of FY20 NPAT.
The funds administration segment saw FY20 revenue increase 16% to $93.8 million thanks to higher licence fees of $9 million which was driven by a contract extension.
In the announcement made to the Australian Securities Exchange (ASX), the firm said that the performance of its wealth management division was accelerated by demand from small to medium independent financial adviser groups and a growing pipeline for digital advice.
At the same time, the outlook for current sales opportunities was positive, with the expectation that it would continue to progress albeit with a lengthening of the sales cycle.
According to Bravura, the increased market uncertainty arising from COVID-19 provided opportunities across digital, automation and microservices ecosystems, but the timing of deal closure would be more difficult to predict.
“Bravura is extremely proud of the way we have been able to support our clients during this difficult time through extensive remote working which has left us well placed to take advantage of strong demand across our client base,” Tony Klim, chief executive officer, commented on the FY21 outlook.
“We continue to pursue a number of significant opportunities, both with existing and new customers, however, given the uncertainty arising from COVID-19, the timing of deal closure is difficult to forecast.
“While the new sales pipeline remains strong, due to the wider impact of COVID-19 there is greater uncertainty in the timing of deal closures when compared to prior years. It is therefore possible that FY21 NPAT will be similar to FY20.”
AUTHOR
Oksana Patron
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