Bravura still positive on next year’s figures

Software developer Bravura Solutions has forecast a 2009 earnings increase of up to 29%, but says market volatility is affecting sales.

Software developer Bravura Solutions has forecast a 2009 earnings increase of up to 29%, but says market volatility is affecting sales.

At the company’s AGM last Friday, chief executive Iain Dunstan reported worsening economic conditions are making it difficult to predict “with any accuracy” the timing and closure of deals.

But Dunstan also released the group’s revenue and profit forecasts for 2008-09, indicating earnings before interest, tax and depreciation will come in at between $19 million and $24 million.

Bravura also expects revenue to come in at $137.7 million to $142.7 million, dependent on currency fluctuation – up from its 2007-08 level of $136.2 million, and a 2006-07’s $101 million.

The lack of new contracts signed in the 2008 financial year has forced the finance software developer to downgrade forecasts several times. The instability has seen the group’s shares slide about 90% over the past year, closing at $0.245 on Friday.

But Dunstan says the company is optimistic.

“Right now, we are confident that if we continue to focus on our customer needs and meet client demand, as well as continue to engage in cost-cutting activities, we will come through this time well, despite economic conditions,” he said at last week’s meeting.

“Overall, our aim is to drive positive cashflows and margins before including new licence fees. We are well on track to achieving this goal in fiscal 2009.”

The forecasts come after Bravura announced it will expand into Europe, paying $31.5 million for a three-year contract with wealth management group Citi. Based in Warsaw, the project will likely generate $15 million in revenue per year and add at least 38 new employees.

Bravura ranked ninth on the SmartCompany Dun & Bradstreet Industry Growth List for the IT sector.

Related story:

• Bravura Solutions expands with Polish acquisition