Bravura Solutions shares soar on guidance lift, dividend plan
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The news: Shares in Bravura Solutions rocketed in morning trade on the ASX after the financial software provider upgraded its full-year guidance and announced the restart of dividends from February.
The numbers: Bravura shares were up 15.3% to $1.91 by 11:30am AEDT, having advanced more than 150% over the last 12 months.
The company increased its cash EBITDA guidance from between $28 million and $32 million to a range of $33 million to $36 million. It lifted its EBITDA guidance from $36 million to $40 million to between $41 million and $44 million.
Bravura also hiked its revenue guidance from $235 million to $240 million to between $240 million and $245 million.
The context: The company intends to recommence the declaration of dividends in February, with payment in March, as a result of its return to profitability and cash generation.
E&P Capital analyst Olivier Coulon said that the early restart of ordinary dividends is a "material positive", given it likely signals confidence in Bravura's ability to sustainably generate free cash flow.
Coulon noted that the company's return to revenue growth is a critical factor in the sustainability of its turnaround, and sees that fact that the guidance upgrade is at least partly revenue led as a "major positive".
What they said: "We are pleased to inform shareholders that our cash EBITDA, EBITDA and revenue performance is anticipated to be ahead of the guidance previously provided," said Bravura's group CEO Andrew Russell.
"This is further confirmation of the execution progress of our strategy to reset and energise the Bravura business."
The sources: ASX announcement, E&P Capital research
