ASX-listed Bravura Solutions Limited increased its group revenue by 24 per cent to $127.4 million over the half, while the company’s NPAT increased by 15 per cent to 16. 3 million dollars.
Wealth management has been a significant revenue stream for Bravura, which also provides software solutions to the life insurance and fund administration industries.
Wealth management revenue increased 24 per cent to A$90.4 million in 1H19, compared to A$72.8 million in 1H18. EBITDA increased 36 percent to $29.4 million.
In a trading update this week, the company noted that the strong revenue growth was a result of two new Sonata contracts, the expansion of project work and increased demand from existing customers.
Sonata is the group’s flagship wealth management system.
During the six months ended December 31, 2018, the company won two new Sonata contracts.
“The continued investment in Sonata, funded by both Bravura and its customers, supports customer demand and strengthens the product’s leading position in the market,” the company said.
“High growth, increasing scale and greater efficiency lead to increased operating leverage. With significant product investments and the accumulation of deep market knowledge and expertise, Bravura is well positioned to continue to capitalize on the significant market opportunity.
Bravura chief executive Tony Klim said that following a strong financial performance in the first half, the company expects continued momentum in the second half of the financial year.
“Our Sonata customers have deeply integrated the product as a mission-critical technology platform that underpins new project activities,” he said.
“In addition, the Fund Administration’s outlook has improved and it is well positioned to take advantage of potential growth opportunities.”
The company’s fund administration revenue increased 23 per cent to $37.0 million from A$30.1 million in the first half. Mr. Klim said the segment benefited from increased implementation and development work stemming from a renewed and enhanced contract with a major global customer.
“Bravura has had an exceptional start to 2019, with significant revenue and profit growth supported by strong demand in all key markets,” the CEO said.
“Recurring revenue grew significantly by 31 percent and represented 72 percent of total revenue. In particular, we have seen significant project activity from existing customers as they expand their commercial reach by licensing and implementing more of Sonata’s rich and sophisticated features into new products.
