Bravura Solutions Limited Half Year Results December 2006 EBITDA increases to $5.2 million

Sydney - 27 February 2007

(ASX: BVA) – Bravura Solutions Limited (Bravura) – a leading global supplier of wealth management applications and professional services – today announced a strong performance for the six months ended 31 December 2006.

Bravura’s net profit after tax (NPAT) was $3.5 million for the six months ended 31 December 2006. Earnings before interest, tax, depreciation and amortisation (EBITDA) were $5.2 million, representing a 118 per cent increase on the EBITDA of $2.4 million achieved in the corresponding six month period ended 31 December 2005.

Financial highlights

- Revenue from the underlying business, excluding Rufus and AB Prodata, of $24.6 million grew by $11.2 million (83 per cent) on the comparative prior period
- Revenue from Rufus in the UK of $7.4 million
- Increased professional services and maintenance revenue on the prior comparitive period of $5.6 million as a result of new contracts and upgrades by existing clients
- Increased investment in research and development of $4.9 million supporting the further development of Sonata and Talisman
- Funds under administration of Bravura applications increased from around $320 billion to over $800 billion
- The number of accounts administered by Bravura applications grew from around 10 million to over 16 million, from a combination of acquisitions and new contract wins

Mr Iain Dunstan, Bravura Group CEO and Managing Director said: “We are very pleased with Bravura’s half year results. The company has transformed over the last six months into a global player as a result of acquisitions and client wins.

There have been a number of significant events since the IPO prospectus and these are exciting times for the group. We continue to deliver on our growth and global development strategy.

“The revenue results are in line with forecast, taking into account the seasonal nature of wealth management software revenues, where revenues for the January through to June period are historically higher than those for the first six month period.

“Expenses of $26.3 million were greater than those forecast from the IPO prospectus as a result of increased R&D spend and higher employee costs and expenses involved with recent acquisitions.

“We believe this upfront expenditure has created a global platform for strong forecast growth in both revenue and EBITDA margins in FY2008 and beyond.”

As a result of Bravura’s international expansion, the company expects to derive:
- 24 per cent of revenue from Australia in FY2007, compared with 79 per cent in FY2006;
- 65 per cent of revenue from the UK and Europe in FY2007, compared with only 12 per cent in FY2006; and
- Over seven per cent of revenue from Asia in FY2007, compared with just under two per cent in FY2006.

Operational highlights

The six months to December 2006 has been a period of significant transformation for Bravura. Since the IPO in June 2006, the company has rapidly grown its UK and European presence - successfully completing the acquisitions of Rufus and AB Prodata in the UK and Luxembourg respectively in December 2006. Both acquisitions are consistent with Bravura’s business objectives and growth strategy and have given Bravura access to 24 new clients, an additional 227 experienced staff and complementary wealth management applications.

Bravura’s underlying business has continued to perform strongly, winning several major clients; including contracts with UK based Nucleus Financial Group, Friends Provident and Cardif Pinnacle. In addition, the company is currently in negotiations with New York Life International in relation to the proposed implementation of Talisman in several Asian countries. These negotiations represent a significant opportunity for Bravura.

The company is now established as a major participant in both the Asia Pacific and European wealth management industries, with over 150 clients managed by over 550 staff in 15 offices around the world.

The acquisitions and significant contract wins have resulted in an increased cost base, predominantly associated with the integration of the new businesses and employment costs associated with a growing headcount required to support the business expansion in Europe, Asia and Australia.

The organic growth through new contract wins has required additional infrastructure, and allocating greater resources and staff to support large implementation projects and professional services. In addition, spending on infrastructure has increased to support the tendering and scoping study processes necessary to win large multi-national contracts.

Benefits from this expenditure are anticipated to drive global growth in 2008 and beyond.

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