ASX All Ords stock Bravura Solutions Ltd (ASX: BVS) is climbing on Wednesday after the software company posted its FY24 results.
Bravura shares are currently swapping hands at $1.17 apiece, nearly 4% higher from the open.
Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) is up less than 1% at the same time.
Let's see what the company posted.
ASX All Ords stock up on net profit growth
Bravura's key highlights for the year include the following points:
- Gross revenue pulled to $250.4 million, a growth of 0.3% compared to FY23
- Earnings before interest, tax, depreciation and amortisation (EBITDA) of $25.8 million, up $26 million year over year
- Operating expenses reduced from $257.7 million to $231 million
- Adjusted net profit of $8.8 million, up $31.9 million year over year
What else happened in FY24?
In FY24, the ASX All Ords stock returned to profitability. It posted positive cash EBITDA of $10 million, more than $30 million of growth year over year.
Operating costs were also down after a staff reduction and cost restructuring. The company ended the year debt-free, with a cash position of $90 million.
The company also achieved a net cash inflow of $14.2 million during the year.
Although no dividend has been declared, Bravura has announced a capital management strategy that includes a proposed capital return of up to $75.3 million and an on-market share buyback of up to $20 million.
The ASX All Ords stock "proposes" to purchase up to 44.84 million shares, or roughly 10% of the company. But, there is no guarantee it will commit the whole amount.
It says the buyback will be funded from existing cash and the proceeds of an agreement with Fidelity International.
What did management say?
Bravura's Group CEO and Managing Director expressed optimism about the ASX All Ords stock's future. He noted the points on profit growth and what this means going forward.
Given the scale and pace of our transformation, the overall business has returned to profitability in FY24, with a cash EBITDA of $10 million, up $37.8 million on FY23, and a growing cash EBITDA margin heading into FY25.
What's next?
Looking ahead, Bravura wants to grow its cash EBITDA to between $28 million and $32 million in FY25.
It says it is "now stable, well-capitalised, and profitable".
But growth might be mixed this coming year, it says, "due to the removal of one-off licence fees and reduction in project revenue".
The ASX All Ords stock also intends to reinstate dividend payments when it is consistently profitable.
ASX All Ords stock snapshot
The Bravura share price has gained momentum following the release of its FY24 results, reflecting renewed investor confidence in the company's strategic direction.
It is up more than 128% in the past year.
