The Bravura Solutions Ltd (ASX: BVS) share price has dropped today following the announcement of a new contract win.
During market open, the news sent the software solutions company shares to an intra-day high of $3.31. However, negative market sentiment has caused a retreat in the Bravura share price, which has now fallen 4.24% to $3.16 at the time of writing.
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Contract win
According to the release, Bravura signed a long-term contract with Aware Super for a suite of software products. The agreement will allow Aware Super to use Bravura's ecosystem to support the administration of retirement savings.
Aware Super is the second largest superannuation funds in Australia, managing close to $130 billion in retirement savings. The company has over 1 million members and supports them with superannuation, retirement, investments and advice.
What's in the deal
Bravura will provide its Sonata Alta operating model that encompasses AdviceOS, Babel SuperStream messaging and member, and adviser digital products. The deal will assist in Aware Super's running of superannuation, income stream, unit trust and advice offerings.
Sonata Alta is a new, digital platform that automates administration tasks through its cloud business-process-automation-as-a-service (BPaaS). The product gives complete visibility of super fund performance and insights to create a personalised experience for customers.
A dedicated support team will also be on standby for any service-related enquiries.
Both parties have signed the contract for an initial term of 7 years.
What did both companies say?
Bravura CEO, Mr Tony Klim commented on the new deal:
We are delighted to provide Bravura's world-class technology to Aware Super. Sonata Alta and Bravura's ecosystem of products are ideally suited to providing Aware Super unprecedented control, flexibility and a highly personalised member experience at scale to support their members for and in retirement.
Ms Deanne Stewart, Aware CEO, added:
After a rigorous selection process, Aware Super selected Bravura as its technology partner for this key initiative. We look forward to working closely with Bravura to deliver exceptional outcomes for our members.
Outlook
Bravura advised that due to the impact of COVID-19 on businesses, there has been greater uncertainty in the timing of deal closures.
Despite the new contract win with Aware Super, Bravura noted that its FY21 outlook remains unchanged. Because of the second wave lockdowns in the UK and stalling Brexit negotiations, its pipeline opportunities are being slowed.
The company expects its net profit after tax for FY21 to be significantly weighted to the second-half of the financial year.
About the Bravura share price
The Bravura share price has been trending lower since May, falling over 30% and its shares are currently trading back near their March lows.
The company has a market capitalisation of $781 million and a P/E ratio of 19.46.
