Platform technology firm Bravura is downsizing its UK offices after the international business recorded a net loss of £107mn (AUD 190mn) in the second half of last year.
The loss marks a 1,300 per cent drop from the £8.4mn (AUD 15mn) profit it made during the same period a year earlier.
In half-year results published today (March 6), which were supposed to be published last week, Bravura said it would close three offices and downsize a further six.
No offices in the UK will shut, but they will be downsized, a spokesperson for the company confirmed to FTAdviser.
Bravura has four UK offices across London, Edinburgh, Manchester and Tonbridge, according to its website.
The size of the cuts impacting UK offices remains unclear, but the firm said in its results that it was aiming for an 8 to 10 per cent reduction in full-time employees, as it offshores more work to existing teams in India and Poland.
In the second half of last year, Bravura recorded a “regretted” staff attrition rate of 16 per cent.
The technology provider, which is listed on the Australian Stock Exchange, underpins adviser platforms Nucleus, Fidelity, and M&G Wealth.
It has had to suspend its dividend to buoy cashflow, and perform a facility drawdown of £5.3mn (AUD 9.5mn) to fulfil working capital requirements.
£45mn equity raise
Bravura also announced today that it was raising £45mn (AUD 80mn) in equity, which it hopes will provide “balance sheet flexibility”, “working capital” and support its ‘organisational change programme’ which chief executive Libby Roy initiated last year in order to cut costs across the business.
In its results, Bravura also published revised projections. Having previously said a loss in earnings before tax, depreciation and amortisation could total £8.4mn (AUD 15mn), it has now changed that higher band figure to £5.6mn (AUD 10mn).
Private equity shareholder buying up shares
Over the past two months, private equity firm Pinetree Capital Ltd has been growing its stake in Bravura.
As of last month, the Canadian private equity investor held 14.4 per cent.
In Australia, a company cannot acquire interest of more than 20 per cent in another company unless it makes a takeover bid to all shareholders - unless an exemption applies.
Shares still on hold
Bravura halted training at the beginning of last week, pending the release of its results and the equity raise. The halt is still yet to be lifted.
The ASX-listed company has seen its share price fall nearly 50 per cent over the past year, prompting rumours it could be a takeover target - especially after SS&C and FNZ lost out on GBST.
In recent months, Bravura’s share price has begun to recover, rising from 34 pence (AUD 0.60) in November to 48 pence (AUD 0.85) at market close when trading halted.
Back in November, the firm’s share price more than halved following an update which suggested performance in its 2023 financial year - which spans July 2022 to June 2023 - will be “below market expectation” before a return to revenue growth in 2024.
