The Bravura (ASX:BVS) share price is rocketing after its latest results

The Bravure share price is rocketing higher today as the company announced strong half year results. We take a closer look.

| More on:
asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Bravura Solutions Ltd (ASX: BVS) share price is climbing strongly this morning after the company announced its half-year report. Shares in the financial services provider are rising to a price of $2.89, increasing by 7.04%.

The release comes as the Bravura share price has fallen sharply in recent times, down 17% this year.

What Happened?

This morning the Bravura share price is rocketing higher as the company announced its 1H21 results. Shareholders have been bidding up the wealth managements share price as the company hit guidance.

Despite the impacts of the ongoing pandemic, Bravura posted a net profit after tax (NPAT) of $9 million. This came as group revenue fell 14%, to $115.7m. Moreover, earnings before interest, tax, depreciation and amortisation also fell sharply. Falling by 38% to $15.8 million.

However, despite the sharp decline in key metrics above Bravura retained a strong financial position with $56.4 million in cash.

Management Comments

Commenting on the group performance, Mr. Klim, chief executive officer, said:

Bravura's 1H21 results are broadly in line with guidance and reflect the unprecedented impact of COVID-19, particularly on UK project work and the sales pipeline. Despite the impact, we have responded to changing market conditions and evolved Bravura's strategy to stay well ahead of client needs. This will lead to greater flexibility for clients in the speed of their implementation and will help them smooth their IT spend. In doing so, Bravura also expands its total addressable market and moves towards a higher proportion of contracted recurring revenue.

Outlook for Bravura

Looking forward, Bravura outlined some key drivers for the business moving forwards. Importantly, the company claims it is starting to see increased market confidence as a result of vaccine rollouts in the UK. With the rollout, it anticipates a resumption in UK and South Africa demand in FY22 from projects postponed due to COVID-19. 

Regarding the company's guidance, the pandemic is expected to continue to affect the business in 2H21. However, the sales pipeline is strong. Accordingly, Bravura anticipates delivering revenue growth in excess of 10%. While achieving FY21 NPAT of A$32m to A$35m.

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A woman with a mobile phone in her hand looks sceptical with a puzzled expression on her face with an eyebrow raised and pursed lips.
Opinions

Is it time to be bullish or cautious on buying ASX shares right now?

Should investors be greedy or fearful as FY26 approaches?

Read more »

A happy young woman in a red t-shirt hold up two delicious burritos.
Opinions

Bull vs. Bear: Guzman Y Gomez shares

Guzman Y Gomez shares peaked at $45.99 in February and closed at $28.04 yesterday. Where to now?

Read more »

A young woman drinking coffee in a cafe smiles as she checks her phone.
Share Market News

5 things to watch on the ASX 200 on Friday

The Australian share market looks set to end the week in a positive fashion.

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Share Market News

The smartest growth stock to buy with $5,000 right now

This growth stock has the potential to keep on keeping on. 

Read more »

Suncorp share price Businessman cheering and smiling on smartphone
Broker Notes

5 ASX 200 shares for smart investors to buy in July

Brokers think these shares could be in the buy zone ahead of the new month.

Read more »

Man with backpack spreading his arms out and soaking in the sun.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing session for investors today.

Read more »

A businessman hugs his computer and smiles.
Opinions

3 ASX 200 shares to buy and hold forever

I don't expect these stocks to go out of style anytime soon.

Read more »

American soldier in military uniform using laptop for drone controlling.
Share Market News

ASX defence shares lift amid NATO Summit decision to turbocharge spending to 5% GDP

The North Atlantic Treaty Organization (NATO) has also signed a 'milestone' agreement with Australia.

Read more »