Bravura share price tumbles after surprise CEO exit

Bravura shares are continuing their slide on Thursday…

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Key points

  • Bravura shares are falling on Thursday
  • This follows the surprise exit of its CEO after 15 years with the company
  • A replacement has already been found and guidance has been reaffirmed for FY 2022

The Bravura Solutions Ltd (ASX: BVS) share price has continued its slide on Thursday.

In morning trade, the wealth management software solutions provider’s shares are down a further 2.5% to $1.41.

This means the Bravura share price is now down almost 45% since the start of the year.

Why is the Bravura share price sinking again?

Investors have been hitting the sell button on Thursday after Bravura announced the surprise exit of its long serving CEO.

According to the release, Nick Parsons will be stepping down from the role after “fifteen years of dedicated service.” The release reveals that Parsons is leaving to spend more time on other priorities.

Bravura has been quick to find a replacement and has appointed Ms Libby Roy as its new CEO and managing director. Roy will join the company after serving notice with Optus, where she is currently the managing director of Optus Business in Australia.

Prior to that, Roy was managing director of PayPal in the ANZ region, and held senior global roles with American Express.

In the meantime, non-executive director, Peter Mann, has agreed to take on the role of interim CEO. He was previously the CEO of Skandia.

Bravura Chairman, Neil Broekhuizen, said:

I am pleased to announce that the Bravura Board of Directors has appointed current Non-Executive Director, Ms Libby Roy to the position of CEO and Managing Director. Given her executive background, industry knowledge and experience at Board level with Bravura, I have every confidence that Libby will champion the needs of clients, employees and shareholders into the future.

I am delighted that Libby has agreed to become our next CEO, having experienced her talent and contribution first hand, I am sure she will contribute significantly to Bravura’s development, both internally and externally.

Guidance reaffirmed

Perhaps stopping the Bravura share price from falling further was confirmation that management expects to achieve its guidance in FY 2022.

That guidance is for “revenue growth to continue in 2H22, resulting in full year revenue growth in excess of 10% against FY21.”

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bravura Solutions Ltd. The Motley Fool Australia has positions in and has recommended Bravura Solutions Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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