It was a great day of trade for the Bravura Solutions Ltd (ASX: BVS) share price on Tuesday.
The financial technology company's shares charged 4% higher to end it at $3.43.
Image source: Getty Images
Why did the Bravura share price charge higher?
This afternoon Bravura released the annual general meeting presentation for its virtual event.
At the event the company spoke positively about its long term prospects and provided the market with commentary around its expectations for FY 2021.
In respect to the former, management believes Bravura is well-positioned for long term growth. Particularly given the high level of investment it has made into its key Sonata platform.
Bravura Chair, Neil Broekhuizen, commented: "We have invested over A$210m in our flagship product Sonata. This investment has positioned Sonata as a market leader in our key regions and has delivered excellent returns for shareholders."
"In FY20, we invested an additional A$36m in our product suite to further enhance digital functionality across our offerings. This includes the development of Sonata Alta, our new cloud-based operating model that gives our clients the agility to 'plug and play' best-of-breed technology solutions to achieve the functionality they need," he added.
In light of this, the company's chief executive officer, Tony Klim, believes Bravura is "well positioned to achieve sustainable growth in the years ahead, energised by our new Sonata Alta proposition and recent acquisitions."
FY 2021.
While the longer term outlook is looking rosy, its near term performance is facing sizeable headwinds due to the COVID-19 pandemic.
Management notes that the pandemic has lengthened the sales cycle and stifled its growth this year.
Mr Klim commented: "As noted at Bravura's FY20 results, while the new sales pipeline remains strong, due to the wider impact of COVID19 there is greater uncertainty in the timing of deal closures when compared to prior years. It is possible that FY21 NPAT will be similar to FY20."
However, Mr Klim has warned that the majority of its earnings will be generated in the second half of the financial year.
He explained: "In October 2020, we also flagged that the second wave UK lockdowns and stalling Brexit negotiations have increased uncertainty and are slowing the progress of pipeline opportunities in the UK. As a result, Bravura expects FY21 NPAT to be weighted approximately 80% to the second half of FY21."
Mr Klim appears confident this is just a short term headwind and expects the company to benefit from favourable industry tailwinds in the future.
The chief executive said: "The onset of the COVID-19 pandemic has increased the importance financial institutions have placed on engaging more closely with their customers. Bravura has developed enhanced digital applications that allow our clients to meet this demand. Our technology platforms address the key issues faced by the world's financial institutions."
