Bravura Solutions Limited (ASX:BVS) Announces 1H25 Results, Dividend and Guidance Update
Financial Performance
Bravura Solutions Limited reported revenue of $127.5 million for 1H25, a slight increase of 0.4% compared to 1H24. EBITDA rose to $23.8 million, up by $15.9 million, while Cash EBITDA increased to $20.0 million, up by $20.3 million. The underlying net profit after tax stood at $11.3 million, marking an increase of $13.0 million from the previous year.
Dividend Declaration
The company has announced a special dividend of 8.92 cents per share ($40 million) related to the net profit from the sale of the licence to Fidelity. Additionally, an interim dividend of 1.6 cents per share ($7.2 million) for the half year ended 31 December 2024 will be paid. These dividends, along with the recent capital return, result in a total cash distribution of over 26 cents per share in FY25. Both dividends will be unfranked, with the record date set for 31 March 2025 and payment on 16 April 2025. The previously announced on-market buyback has been suspended.
Guidance Update
Based on improved financial performance and outlook, Bravura Solutions has upgraded its FY25 guidance. The gross revenue forecast has increased to $248 million – $252 million from the previous $241 million – $245 million. EBITDA guidance is now set between $46 million and $49 million, up from $41 million – $44 million, and Cash EBITDA is projected to range from $38 million to $41 million, an increase from $33 million – $36 million. This updated guidance excludes the one-off impact from the licence sale to Fidelity.
Executive Comments
Mr Russell, Group Chief Executive Officer and Managing Director, stated, “We are successfully executing to the four strategic pillars of our Energise, Build and Grow strategy. Our operational business improvement execution is delivering CEBITDA margin expansion and profitability improvement through both revenue growth and cost reduction. Consequently, we are upgrading our guidance again for revenue, EBITDA and CEBITDA.”
Motley Fool contributor Matt Burgess 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. The Motley Fool Australia has no position in any of the stocks mentioned. 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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