Platform technology provider Bravura stated that Brexit has not hurt the business after it reported increased revenue and earnings that beat its forecast.
The group’s operating earnings before interest, tax, depreciation and amortization (EBITDA) in 2016 reached $18.2m (£14.6m) ahead of its forecast last year of $17.7m
Revenue from its wealth management business increased by 10 per cent to $57.8m, of which its web-based administration solution Sonata revenue now accounts for 72.6 per cent.
Bravura chairman Brian Mitchell called the business’s performance after re-listing on the Australian Securities Exchange “pleasing”, with operating EBITDA outperforming forecasts for the first half of 2017.
He added that Brexit has not proved to be consequential for the business, and that the only effect that the UK’s decision to leave the EU has had on the business is a positive foreign exchange rate as a result of weak sterling.
“Bravura remains on track to deliver the guidance provided in its 2016 IPO prospectus for the full year 2017 financial year. Brexit is having no visible effect on UK sales (other than FX) with our UK business continuing to be strong, as evidenced by a large UK sale in [the first half of] 2017.”
Market demand for Bravura’s products has not faltered as the business added clients in Australia and the UK, as well as completing two fund administration Small self-administered scheme sales.
Nucleus is currently the only UK adviser platform to use Bravura as its technology supplier.
Chief executive Tony Klim said that the business benefitted from “strong market tailwinds and a large addressable market”.
“The many challenges faced by our clients globally including, complex regulatory change, demand for mobile and self-directed technology, rapid product innovation, cost and margin pressures, and the need for scalable technology plays directly into the hands of our flagship offering Sonata.”
