BVS - Bravura Solutions

[winner69]

No idea jaa but jeez i hadn't noticed that BVA shareprice had fallen all the way down to 17 cents odd

Once once a very promising post float but the chart just got worse and worse and it went off my watchlist around the $1 mark six months ago

Again another case where charts keeps one out of trouble ........but things may be changing?

[Footsie]

could be curtains for these guys

bank is obviously calling in the debt. hence the cap raising.

I notice fisher funds holds this stock..... why do they have this Buy and hold forever regardless approach to stocks.

[macduffy]

I suppose that Ironbridge could be fronting up with another, lower offer.
If they've sorted out their own problems, that is!

I took my loss on this one a few months ago but best of luck to anyone still holding.

[Jaa]

The second update does say "Recapitalisation Proposal" so I assume it is some form of rights or equity issue as oppossed to a takeover.

Obviously not a quick fire "placement" though! May be a way for the orginal owners to regain control after last year's debacle?

Footsie, their underlying business and cashflows seem pretty sound so I would be surprised if they dissappear completely.

Their software effectively runs most of the financial services companies in Australasia and many investment firms in Europe and is near impossible to replace in a hurry (The "economic moat" Carmel Fisher was talking about in the weekend). Thus maintenance and consulting revenues should be enough alone to tide them over, albiet with cuts to the number of staff.

[Footsie]

from what i read in the last mac bank note

debt has ballooned to $60m
market cap is only 25m... and with NPAT only $5m so the are in the poo....

NO doubting its a great business model... but mgmt are poor.
if are you are generating 73m of rev in the half and only npat of 2m something is wrong... given this is a service industry NPAT margin should be nore like 12%


The best way I can see out of this is that the CEO is fired.
they slash costs. do a rights issue at 15c for 200m shares = $30m

Its disgraceful that a company with these credentials has been run like this


I sold my holding at 1.42 and thank goodness for that.....

Plernty more fish in the sea Jaa.... nothing to see here move along

[Jaa]

The proposal is out and at face value it looks like a takeover and a big pay day for Ironbridge at the expense of existing shareholders. The directors also get to swap their margin lending account with one with Ironbridge with is no doubt nice for them but seems to be at the expense of the remaining shareholders.

The proposal is to raise $33.4m at 0.15 cents (versus a market cap of $21.5m at the rights issue price) via a rights issue fully underwritten by Ironbridge.

Only $28m is going to pay down debt though, which will halve the companies total onbligations. The rest is going in fees, mostly to Ironbridge plus a further $13m in options exercisble by Ironbridge at 0.15 cents anytime in the next 2 years.

As they have been sitting on this since March 13 and no doubt trying to to get a better offer, the chances for an improvement seem slim. It does require shareholder approval though which can't be guranteed considering the structure and terms. The independent report should make for interesting reading.

Thoughts?

[winner69]

still waiting for the recap to take place .... rights issue 15 cents this month I think still might be rejectedby shareholders

What happens then?


Interestingly shareprice crossed the 200MA line recently .....

[Jaa]

Anyone else still following Bravura? After watching for a few years I finally bought a smallish holding in their last 10c capital raising.

Thus its nice to see Ironbridge take the latest offer/entreaty a bit more seriously after dismissing the previous random offer between 17.5c-20c out of hand.

Any thoughts about what price it would take Ironbridge to let go of this one? Figure they would be happy wih an offer a bit above their average entry price (~15c) and obviously above the 19.5c they so dismissely rejected, say 25c?

[Jaa]

Interesting that Fisher Funds still hold 12% of Bravura and have been buying all year including today according to the SSH notice they just filed.

[macduffy]

Interesting that Fisher Funds still hold 12% of Bravura and have been buying all year including today according to the SSH notice they just filed.

In that case they'll be sitting on a pretty hefty book loss overall, at the moment.

BVA is one of several FF favourites that I looked at several years ago. I bought three - lost my shirt on BVA - lucky enough to score a three plus bagger in AOE - and still hold RKN which has more than doubled since then. Overall, not a bad result!