Wealth management software provider Bravura has seen a 54% decline in net profits after tax (NPAT) and 38% decline in earnings before interest, taxes, depreciation, and amortisation (EBITDA) in its H1 FY21 results.
The firm maintained this was in-line with earnings guidance which had accounted the impacts of the COVID-19 pandemic.
Revenue dropped 14% to $115.7 million from $125 million in 1H FY21, while NPAT dropped to $9 million (from $19.8 million), and EBITDA had dropped to $15.8 million (from $25.5 million).
An unfranked interim dividend of 2.6 cents per share (cps) was declared, which brought the dividend payout ratio 70% of H1 FY21, while earnings per share was 3.7 cps.
The firm had a cash position of $56.4m as at 31 December, 2020, and had acquired Delta Financial Systems for $42m in October 2020.
Tony Klim, Bravura chief executive, said the firm’s 1H21 results were broadly in line with guidance and reflected the unprecedented impact of COVID-19, particularly on UK project work and the sales pipeline.
“Despite the impact, we have responded to changing market conditions and evolved Bravura’s strategy to stay well ahead of client needs,” Klim said.
“This will lead to greater flexibility for clients in the speed of their implementation and will help them smooth their IT spend.
“In doing so, Bravura also expands its total addressable market and moves towards a higher proportion of contracted recurring revenue.”