24-Nov-2020:  AGM addresses by the Chairman and the CEO

{I hold BVS shares.]

27-Oct-2020:  Bravura signs long-term contract with Aware Super [plus FY21 Outlook]

Aware Super are the mob who have been in the bidding battle with Uniti (UWL) over the acquisition of OptiComm (OPC), which Uniti appear to have won at this stage.  Aware Super (previously First State Super) is Australia’s second largest superannuation fund, managing nearly A$130b in retirement savings for more than 1m members. Aware Super supports its members with superannuation, retirement, investments and advice.

Aware Super has selected Bravura to provide the technology to power its mission-critical operations, which support the administration of the retirement savings of its members. Aware Super is implementing an integrated ecosystem of Bravura products, underpinned by Sonata Alta and encompassing AdviceOS, Babel SuperStream messaging and member and adviser digital offerings. Bravura’s products will underpin Aware Super’s provision of superannuation, income stream, unit trust and advice offerings. Bravura will also provide a dedicated Sonata Alta support team. The contract is for an initial term of 7 years.

Sonata Alta is a new, digital-first operating model, underpinned by Bravura’s highly regarded Sonata platform with in-built industry standard process orchestration to achieve high levels of automation and supported by a best-inclass ecosystem with the flexibility to evolve alongside client needs. Sonata Alta’s cloud BPaaS (Business Process Automation as a Service) platform provides clients control over their customers’ data, operations and end customer experiences.

Tony Klim, Chief Executive Officer at Bravura Solutions said:

“We are delighted to provide Bravura’s world-class technology to Aware Super. Sonata Alta and Bravura’s ecosystem of products are ideally suited to providing Aware Super unprecedented control, flexibility and a highly personalised member experience at scale to support their members for and in retirement.”

Deanne Stewart, CEO at Aware Super said:

“After a rigorous selection process, Aware Super selected Bravura as its technology partner for this key initiative. We look forward to working closely with Bravura to deliver exceptional outcomes for our members.”

Implementation work at Aware Super has commenced.

FY21 outlook

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.

There is no change to FY21 Outlook as a result of the Agreement signed with Aware Super, however 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 significantly weighted to the second half of FY21.

– ENDS –

[I hold BVS and UWL shares.]

12-Oct-2020:  Bravura acquires Delta Financial Systems

Key points

• Bravura to acquire Delta Financial Systems (Delta) for a total consideration of up to GBP23.0m (A$41.5m*)
• The acquisition complements Bravura’s core Sonata offering and broadens Bravura’s growing ecosystem of products and services
• Building on FY20 pro forma revenue of GBP6.0m, Delta is forecast to achieve revenue growth in the range of 20- 30% with margins similar to Bravura’s Wealth Management segment
• Expected to be EPS accretive in FY21 and funded from existing cash reserves

Bravura Solutions Limited (ASX:BVS) (Bravura) has today announced the acquisition of Delta for a total consideration of up to GBP23.0m (A$41.5m*).

Delta is a UK software company that provides technology to power complex pensions administration in the UK market. Delta’s highly regarded products support the administration of SIPPs (self-invested personal pensions) and SSASs (Small Self-Administered Schemes), including the full range of complex client drawdown options available under the pension freedoms legislation. Delta’s technology currently supports the needs of more than 30 UK clients.

The acquisition broadens Bravura’s product suite. Delta’s products represent a natural extension to Bravura’s core Sonata offering and expand Bravura’s ecosystem of products and services. The acquisition also provides an opportunity to offer Bravura’s other products to Delta’s client base.

Commenting on the acquisition, Tony Klim, Chief Executive Officer said:

“We are delighted that Delta is joining Bravura. Both businesses have complementary products that together, provide a compelling offering to support the mission-critical operations of wealth management firms in the UK.”

Commenting on the acquisition, Michael Power, CEO and Co-Founder of Delta said:

“Bravura is a leader in the UK wealth management marketplace and Delta’s products sit perfectly alongside Bravura’s offering. The Delta management team look forward to working together with Bravura to deliver outstanding service to both Bravura’s clients and Delta’s clients.”

The transaction is expected to be completed by the end of October 2020 subject to regulatory approvals.

* Based on the AUD/GBP exchange rate of 0.55 on 9 October 2020.

– ENDS –

[I bought BVS shares this morning.  I was actually planning to buy some before this announcement and this acquisition did not change my mind.  BVS is trading at a discount to their peers, or they were before today certainly - and probably still are.  Their share price has risen +8% so far today (from their $3.38 close on Friday to $3.65 now) on this news.  The market seems to like it.  I think it will draw attention back to BVS, which has been left behind as others in this space have done well and their share prices have powered ahead (NWL, MAI, HUB).  I consider BVS to be the value play in the funds administration and wealth management software space.]