ASX-listed Bravura Solutions Limited increased group revenue by 24 per cent to $127.4 million over the half, while the company’s NPAT increased 15 per cent to $16.3 million.
Wealth management was a significant revenue driver for Bravura, which also provides software solutions to the life insurance and funds administration industries.
Revenue from wealth management increased 24 per cent to $90.4 million in 1H19, up from A$72.8 million in 1H18. EBITDA increased 36 per cent to $29.4 million.
In a trading update this week, the company noted that strong revenue growth resulted from two new Sonata contracts, expanding project work and increasing demand from existing clients.
Sonata is the group’s flagship wealth management system.
Over the six months to 31 December 2018 the business achieved two new Sonata contracts.
“The continued investment in Sonata, funded by both Bravura and its clients, supports client demand and extends the product’s market-leading position,” the company said.
“Strong growth, increasing scale and greater efficiency, are driving increased operating leverage. Following significant product investment and the accumulation of deep market knowledge and expertise, Bravura is well-positioned to continue to capitalise on the significant market opportunity.”
Bravura chief executive Tony Klim said that after a strong first half financial performance, the company sees continued momentum heading into the second half of the financial year.
“Our Sonata clients have deeply embedded the product as their mission-critical technology platform, which is underpinning new project activity,” he said.
“Furthermore, the funds administration outlook has improved, and it is well-positioned to take advantage of potential growth opportunities.”
The company’s funds administration revenue increased 23 per cent to $37.0 million, up from A$30.1 million in 1H1. Mr Klim said the segment benefitted from increased implementation and development work arising from a renewed and enhanced contract with a significant global client.
“Bravura has had an outstanding start to the 2019 financial year, with significant revenue and earnings growth underpinned by strong demand across all key markets,” the CEO said.
“Recurring revenue was up strongly by 31 per cent and comprised 72 per cent of total revenue. In particular, we have seen significant project activity from existing clients, as they extend their business reach by licensing and implementing more of Sonata’s rich and sophisticated functionality across new products.”