Did not see any announcement on loss of contract, but on further digging, it appears that Nucleus (a UK based firm) is being taken over and the acquiring firm will be moving Nucleus away from BVS/Sonata to FNZ (only because the acquirer has a strategic relationship with FNZ).
It does not appear that BVS lost the contract because of inferior software.
Also to put it in context, Nucleus manages 17.4bn pounds with 101k customers - in Oct, BVS signed a contract with Aware super which manages AUD 130bn and 1m members. On the surface at least, both the reason for the loss, and the actual size of the customer does not seem a major issue.
I'm still scratching my head about the CEO saying: "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." I'm hoping he means NPAT in relation to pipeline rather than the total NPAT (after all this should be a steady SaaS type business), but results next week will clarify that.
At $2.80 it's trading at trailing PE of 17 times....not expensive, but IMO best to wait for the certainty of results rather than diving in too early.
BVS Price at posting:
$2.82 Sentiment: Hold Disclosure: Held
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