BVS - Bravura Solutions

[steve fleming]

FTSE

BVA's EV/EBITDA (08) is 9.74
BVA's EV/EBITDA (09) is 7.48

Current EV/EBITDA ratio for sector ~ 15

Therefore inital target would be $3.00 - increasing to $3.50 - $4.00 over the next 6 - 12 months assuming the story holds

Credit Suisse have re-affirmed their strong buy on BVA with a $2.80 target.

[Footsie]

BVA have to deliver to be re-rated back to the mid 2.50 mark

all will be revealed by february me thinks

[_Michael]

I like the story and see significant potential in terms of locked in revenue streams, servicing a growing market and barriers to entry. In addition i'm impressed by the entreprenurial spirit of management and that they have significant flesh in the game. Also like that fund managers who USE the software are also buying the shares.

Yet i'm not quite ready to pull the trigger. Why not? Guess the lack of cashflow still worries me, my feeling is that they will probably deliver on forecasts and if they do there will still be time to buy as a long term hold (albiet missing the 40% or so that one might enjoy between now and then).

On the other hand, you are looking at a $250 million company that is still putting more cash out the door than they are bringing in - so if that continues for another 12 months the stock will get hammered and noone seems to be thinking about that...

All in all i'm more optimistic on BVA than pessimistic but will wait for the cash, and some sort of assurance iof being able to buy at below 20 times fwd earnings...

cheers
Michael

[steve fleming]

On the other hand, you are looking at a $250 million company that is still putting more cash out the door than they are bringing in - so if that continues for another 12 months the stock will get hammered and noone seems to be thinking about that...

Hi Michael,

BVA anticipate positive net operating cash flow for the December quarter to be above $15 million...we'll see if they can deliver!

cheers

[_Michael]

Hi Steve

For sure - its going to be all eyes on the cashflow statement for Dec Quarter and if they come through with the goods then there won't be much left to hold her back....!

[Footsie]

cashflow will be positive.... just depends by how much....


If its $15m.... then price will shoot to 2.50 quickly i'd say....

if it was only $10m... then i'd doubt price would fall back that much.


Give the confidence returning to the stock as evidenced by the price action i think it will be the former...... the market is almost always right.

[_Michael]

Bravura signs major transfer agency deal with leading UK
financial services group


Sydney, 27 December 2007 (ASX: BVA) ­ Bravura Solutions Limited (Bravura) ­ a leading
global supplier of wealth management applications and professional services ­ has signed a
multi-year agreement with a major UK financial services group, for the implementation of the
Rufus transfer agency platform.

Under the initial three year deal, Bravura will provide secure hosted applications which will
support the launch of a new set of investment products. The project comprises a new licence
fee and implementation services which will generate revenues in excess of $5 million during
calendar year 2008.

Iain Dunstan, Bravura Solutions' CEO and Managing Director said, "We are very pleased to
welcome one of the UK's leading financial institutions as the first new Rufus client under
Bravura's ownership."
- ends more -

About Bravura Solutions Limited

An S&P/ASX300 company, Bravura Solutions Limited (Bravura) is a leading global supplier of
professional consulting services and highly specialised administration and management
applications for superannuation & pension, life insurance, investment, portfolio administration,
transfer agency and STP financial messaging.

Bravura provides professional services and wealth management applications to more than 175
financial institutions including a range of corporate clients. More than 18 million accounts are
administered on Bravura software, with more than US$1 trillion in funds administered globally.

Bravura currently employs more than 650 people staffing 14 offices across Australia, New
Zealand, UK, Europe, Asia, South Africa and India (with a distribution partner)
.

Bravura Solutions is proud to have been ranked number 1 in Australia's BRW Fast Starters for 2007
and to have won the 2007 Australian Export Award for Information and Communication Technology.
- e

[_Michael]

ASX RELEASE
Absa Investment Management Services signs major licensing
deal for Bravura's TalisTrust and Sonata Business Services


SYDNEY, Australia; 31 December 2007 ­ Bravura Solutions (Bravura, ASX: BVA) has signed
a major new licensing agreement with AIMS, a subsidiary of the leading South African banking
and financial services institution, Absa, for a major upgrade to its registry systems.

Under the deal, Bravura's unit registry offering, TalisTrust will replace AIMS' existing
administrative systems and consolidate multiple applications on a single platform. The new
system will enable AIMS to administer a more diverse range of financial products, automate
transactional processes and better manage its growing customer base.

Mark Kitching, Chief Operating Officer of AIMS said: "Our decision to purchase TalisTrust
follows an intensive evaluation of competitive offerings, prompted by strong growth of AIMS'
business.

"TalisTrust will simplify our existing administrative environment, delivering significant time and
cost savings. This will enable us to better focus on our growing client base and service
delivery."

"Bravura is delighted to extend its relationship with AIMS, which has contributed significantly to
our strengthening presence in the South African market," said Iain Dunstan, Group CEO and
Managing Director, Bravura Solutions.

"Bravura's success in South Africa is largely due to the ease with which our products comply
with South African requirements and enable companies, like AIMS, to seamlessly integrate their
businesses across geographic destinations and legal jurisdictions."

"The deal with AIMS reflects our growing global footprint and commitment to the expanded
EMEA region's financial services sector and it will generate over $3 million in new licence and
services revenue during calendar year 2008."

As a result of the TalisTrust deal with AIMS, Bravura will recruit additional staff to provide local
support and expand Bravura's range of offerings to the South African market.

[_Michael]

Think that I'm going to give BVA the benefit of the doubt on this one and assume that they will make their cashflow forecasts - but tread careful in case they do not.

On Friday I bought 50% of what I intend to buy, then pick up the next parcel after the next results announcements in Feb - leaving option to average down/up.

The deal flow seems to building rapidly and am picking this is on the back strengthened reputation in the market place which seems to building all over the world.

Also see the longer term potential -once fund managers locked in switching costs are high which gives them an attractive economic moat.

Also some of their services are charged as % of FUM or by transaction so they have good exposure to two trends: growth in funds management and growth in outsourcing.

Still for me its a little on the speculative side due to my concern about cashflows post acquisitions - but on other hand not overly expensive from price to sales perspective.

Asume FY09 will see increased margins % of sales and improved cashflows, management substantial holders so genuine motivation to deliver on this promise.

[Footsie]

Michael

This is not a speculative stock