The Bravura Solutions Ltd (ASX: BVS) share price is climbing strongly this morning after the company announced its half-year report. Shares in the financial services provider are rising to a price of $2.89, increasing by 7.04%.
The release comes as the Bravura share price has fallen sharply in recent times, down 17% this year.
What Happened?
This morning the Bravura share price is rocketing higher as the company announced its 1H21 results. Shareholders have been bidding up the wealth managements share price as the company hit guidance.
Despite the impacts of the ongoing pandemic, Bravura posted a net profit after tax (NPAT) of $9 million. This came as group revenue fell 14%, to $115.7m. Moreover, earnings before interest, tax, depreciation and amortisation also fell sharply. Falling by 38% to $15.8 million.
However, despite the sharp decline in key metrics above Bravura retained a strong financial position with $56.4 million in cash.
Management Comments
Commenting on the group performance, Mr. Klim, chief executive officer, said:
Bravura's 1H21 results are broadly in line with guidance and reflect 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. 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.
Outlook for Bravura
Looking forward, Bravura outlined some key drivers for the business moving forwards. Importantly, the company claims it is starting to see increased market confidence as a result of vaccine rollouts in the UK. With the rollout, it anticipates a resumption in UK and South Africa demand in FY22 from projects postponed due to COVID-19.
Regarding the company's guidance, the pandemic is expected to continue to affect the business in 2H21. However, the sales pipeline is strong. Accordingly, Bravura anticipates delivering revenue growth in excess of 10%. While achieving FY21 NPAT of A$32m to A$35m.
