Bravura Reports 0.4% Revenue Growth, NPAT Up $13M, Declares Special Dividend

Solid Half-Year Performance Amid Strategic Execution

Bravura Solutions Limited (ASX:BVS) has reported its half-year results for the period ending 31 December 2024, showcasing a steady revenue increase to $127.5 million, up 0.4% from the prior corresponding period. More notably, the company achieved a substantial uplift in profitability, with EBITDA rising by $15.9 million to $23.8 million and underlying net profit after tax (NPAT) improving by $13 million to $11.3 million. This performance reflects the successful execution of Bravura's "energise, build and grow" strategy, particularly in the EMEA and APAC regions where client trust is being rebuilt through consistent delivery and operational improvements.

Dividend Resumption Signals Confidence

Following this financial turnaround, Bravura has announced the recommencement of dividend payments, a move welcomed by investors. The company declared a special dividend of 8.92 cents per share, equating to $40 million, linked to the net profit from the sale of a perpetual licence to Fidelity. Additionally, an interim dividend of 1.6 cents per share ($7.2 million) will be paid for the half-year ended December 2024. Combined with a recent capital return, these distributions amount to over 26 cents per share in cash returns to shareholders for FY25. Notably, the on-market buyback program has been suspended, and dividends will be unfranked with the dividend reinvestment plan (DRP) remaining suspended.

Upgraded Guidance Reflects Optimism

Bravura has upgraded its FY25 guidance, reflecting confidence in continued momentum. The company now expects gross revenue between $248 million and $252 million, up from the previous range of $241 million to $245 million. EBITDA guidance has been lifted to $46 million–$49 million from $33 million–$36 million, while cash EBITDA is forecast between $38 million and $41 million, a significant increase from prior guidance of $33 million–$36 million. These upgrades underscore the effectiveness of operational improvements driving margin expansion and profitability through both revenue growth and cost control.

Regional Performance and Strategic Outlook

Regionally, Bravura's EMEA segment contributed $90.4 million in revenue, a slight increase, while APAC revenue dipped marginally to $37.1 million. EBITDA gains were particularly strong in EMEA, rising to $31.6 million, and APAC EBITDA also improved to $12.2 million. The company continues to focus on rebuilding client relationships and enhancing service delivery, which are critical to sustaining growth in competitive markets. CEO Russell emphasized the strategic pillars driving the turnaround, highlighting operational execution as key to margin and profitability gains.

Looking Ahead

Bravura's results and guidance upgrade signal a company regaining its footing after previous challenges, with a clear path toward sustained profitability and shareholder returns. The suspension of the buyback in favor of dividends suggests a prioritization of direct shareholder value distribution. Investors will be watching closely how Bravura maintains momentum, manages costs, and capitalizes on growth opportunities across its global footprint.