Bravura Solutions today (14 August) announced that it has returned to profitability with a positive cash EBITDA of $10.0m in its full-year results for the period ended 30 June 2024.
The group reported that it had achieved recently upgraded guidance across all metrics, with gross revenue of $250.4m, slightly ahead of FY23 and earnings before interest, tax, depreciation and amortisation (EBITDA) of $25.8m, up $26.1m vs FY23.
Operating expenses fell from $257.7m to $231.0m as a result of significant reduction in head count as part of the cost out restructuring, reorganisation of occupancy requirements, reduction in external costs and Adjusted Net Profit after Tax of $8.8m which is up $31.9m compared to FY23.
Overall, Bravura returned to profitability with a positive Cash EBITDA of $10.0m for FY24 with a strong net closing debt free cash position of $90.0m as 30 June 2024, and a net cash inflow of $14.2m in FY24.
No dividend has been declared as the company continues to stabilise and generate free cash flow, it further said.
Andrew Russell, group chief executive officer and managing director said: “Given the scale and pace of our transformation, the overall business has returned to profitability in FY24, with a cash EBITDA of $10m, up $37.8m on FY23, and a growing cash EBITDA margin heading into FY25.”
Its plan is to grow the Cash EBITDA to $28m-$32m in FY25 alongside a capital management strategy which comprises a proposed capital return of up to $75.3m, an on market buy back of $20m and an intention to reinstate dividend payments once sustained profitability has been achieved.
Further to the announcement on 1 August 2024 on a proposed return of capital, it intends to conduct an on-market buy back of its ordinary shares of up to $20 million (Buy Back) as part of its capital management strategy.
Under the Corporations Act 2001 (Cth), companies are permitted to buy back up to 10% of the lowest number of voting shares on issue during the previous 12 months, without requiring shareholder approval. Accordingly, the company proposes to acquire up to a maximum of approximately 44,835,400 shares being 10% of the lowest number on issue during the previous 12 months.
The number of shares purchased, the purchase price and timing of the Buy Back will depend on the company’s prevailing share price, market conditions, the company’s forecast future capital requirements and other consideration including any unforeseen circumstances.
The Buy Back will be funded from existing cash and the proceeds of Bravura’s agreement with Fidelity International as announced on 6 August 2024. Bravura will maintain a strong balance sheet following completion of the Buy Back and the Board will continue to assess its capital management strategy.
