Bravura Solutions profit rises despite fall in wealth management earnings
William McInnes
Bravura Solutions has reported a significant increase in its first half profit despite a fall in earnings from its wealth management business.
The company reported net profit after tax grew 21 per cent to $19.8 million while group EBITDA firmed 7 per cent to $25.5 million.
The company's funds administration delivered growth during the half however its wealth management business experienced declines across the board to the temporary delays in some major transformational client projects.
Its wealth management EBITDA fell 11 per cent to $26 million while its EBITDA margin slid to 28.6 per cent from 32.5 per cent in the previous half.
Its funds administration business delivered a 44 per cent increase in EBITDA to $19.6 million while its EBITDA margin expanded to 44.4 per cent from 36.9 per cent in the previous year.
“The 1H20 results are in line with our expectations, with continued investment positioning Bravura for long-term growth underpinned by a significant pipeline of sales opportunities from new clients," said chief executive officer Tony Klim.
"Group margins again expanded, reflecting the operating leverage inherent in the business. We are excited by the progress of Midwinter and FinoComp, with both businesses providing the group with strategic opportunities."
The company said full-year net profit after tax growth was expected to be in the mid-teens
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