It's clear as mud!
Their Annual Report stated: “
It is therefore possible that FY21 NPAT will be similar to FY20.”
And as a result, their share price was smashed from $4.30 to less than $3, simply because the growth seemed uncertain.
Now they have clarified everything, and stated:
Chairman: "With a solid balance sheet position, an extended and complementary product suite and increasing scale benefits, Bravura is well placed to continue its growth trajectory and capitalise on its significant long-term sales pipeline."
CEO: "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. In October 2020, we also flagged that 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 weighted approximately 80% to the second half of FY21."
Completely different response this time round (?), and the share price is up as the market loves it (back to $3.40s at least).
Honestly though, I think that the market over-reacted previously, and now they are framing things a bit better, people can see through to the 2021+ growth. As for the NPAT being skewed, it's not surprising that the last dollars of revenue in the financial year is where the greatest profit comes from when so much of the costs are fixed.
(20min delay)