BVA - Bravura Solutions

[SophieSweet]

Just wondering is anyone following the Bravura saga and have any ideas where it is going?

On the 5may a takeover was announced and Bravura had certain conditions to meet for the proposal to continue at the price of $1.73. One of which being that they earn 23.5million by 30june. They fell short to about 20million, but said they have several contracts in advanced stages. They announced an extension of a contract on the 3july with a UK top50 company, Legal and General, till the end of 2011, having already been contracted to them since 1997. Apparently the takeover company, Ironbridge are still keen and new terms are being discussed. It said in the announcement 2july, re the takeover proposal, that the new discussions should take several weeks at least.

The price hit the low 80s this week and is hanging in the 90s now. But considering that they were over $2 at their high around november and the offer was $1.73, a new price could be still significantly higher than where it is now, and they already proved that they had new contracts coming, when they announced the Legal and general one 3july. It maybe worth a look, I would like to know anyones thoughts?? Of course do your own research on what I quoted, but I think all what I said is spot on.

 

[SophieSweet]

Interesting! BVA gained another contract around 16july according to the below link. Also of note is that this contract wasn't announced to the market, but in the financial standard?? i don't know what to make of that, wasn't it worth an ASX announcement? I thought it was, as it showed they had another contract early FY09, which backs up their statement early july about the reduced earnings, which affected the takeover. Then they get two in the bag early FY09 already.

http://www.financialstandard.com.au/news/view/23528/

Also today announced some improved functionality for the product they sold to Perpetual. Although apparently it is still being trialled or tested or whatever??

All augers well though for this takeover that was at $1.73. What will the new takeover price be, should the takeover continue. The price is still in the 90s, and it is about three weeks since the last information on the takeover and they said at least three weeks, so could be any day now!! I hope so!

 

[SophieSweet]

???

 

[oldblue]

???

Hi Sophie
I really have nothing solid to base this on but I just have a nasty feeling that a new offer is likely to be a low-ball one.
I just can't see the market, imperfect as it is, getting things that far wrong.
The problem is that I hold a few at north of $1-73, let alone 90c!

 

[SophieSweet]

Sorry to hear that Oldblue. I have been following this for awhile, due to a mate and a fair few of his mates who thought they were on a winner when they bought north of $1.50. All mine are at 93c, so I sort of think although $1.73 might not happen, surely around $1.50, given the recent news and the earnings shortfall wasn't that big. Maybe Ironbridge isn't the only company looking at them as an acquisition?? They certainly seem to be doing good long term contracts with large financial companies, so?????

I thought the NMSO price was a bit high so sold a few, and considering the market is still falling and volatile, thought I'd get in on something that makes a $$$, after losing on the margin loan with NMS. I always remember your words now about catching knifes etc, and I caught 6 margin calls on NMS, so glad to be out of that margin loan business for now. I think a NMS margin loan later on, hopefully with the all the proceeds of a BVA win, should correct that and more. Its all gambling, just like the TAB. Take care and good to hear from you!

 

[oldblue]

What to make of yesterday's BVA announcement to the effect that the company " continues to (earn) strong positive net operating cash flow " - $11.9m in the 9 mths to 30 June? This of course follows on from the 2 July announcement that EBITDA to June did not meet the Ironbridge takeover condition of $23.5m, falling in the $19m - $20m range.
Company goes on to state " anticipated strong positive net operating cash flow for the 2009 fiscal year."

I tentatively interpret this as :

- a caution to Ironbridge not to come back with a drastically reduced offer.

- encouragement to shareholders to resist any such attempt.

Any other views?

 

[SophieSweet]

I am not that familiar with BVA, so I can't really give you a good answer there Oldblue. But from what I can gather BVA have a very good product, the below link is a news article of a BVA client winning a huge contract because they have a BVA product. The news is recent and must give BVA some leverage in their dealings with Ironbridge or anyone else. I know the news came out 31july and we all saw it, but the way it's reported here, sounds very good.

Here's a copy of the relevant info, plus link-

The UK's biggest insurer, Aviva, has signed a strategic partnership with Scottish Friendly, one of the smallest, which will see jobs migrating across the Border.

Aviva said that by early next year its Norwich Union customers with Lifetime "wrap" accounts would see a "significantly improved service", provided by the tiny mutual organisation in Glasgow.

Scottish Friendly's leading-edge IT platform has been the basis for its drive into new products, and earlier this year it won a prestigious inter- national award.

Fiona McBain, chief executive, commented: "It is a very significant administrative contract, a huge testimony to our systems, and it adds greatly to our credibility as a financial services group." On the employment implications, she said: "There is a lot of sensitivity in York, and I am not at liberty to speculate as to how many roles will be transferred, but there will be additional roles created at Scottish Friendly."

The insurer won its first client for wrap accounts last summer from the Edinburgh-based Nucleus advisory business.


http://www.theherald.co.uk/business...544.0.Aviva_goes_north_for_better_service.php

 

[robusta]

What to make of yesterday's BVA announcement to the effect that the company " continues to (earn) strong positive net operating cash flow " - $11.9m in the 9 mths to 30 June? This of course follows on from the 2 July announcement that EBITDA to June did not meet the Ironbridge takeover condition of $23.5m, falling in the $19m - $20m range.
Company goes on to state " anticipated strong positive net operating cash flow for the 2009 fiscal year."

I tentatively interpret this as :

- a caution to Ironbridge not to come back with a drastically reduced offer.

- encouragement to shareholders to resist any such attempt.

Any other views?

Interesting to see this post from five years ago, Ironbridge are back with an offer at $0.28 per share.

 

[Ves]

Interesting to see this post from five years ago, Ironbridge are back with an offer at $0.28 per share.

Yeah, I procrastinated with this one and had only just finished my valuation (ironically on the day they made the announcement). It was very cheap at $0.17. Pretty decent business with lots of free cash flow. Was yielding about 12% FCF at $0.17. Oh well, no use crying over missed opportunities.

 

[System]

On October 14th, 2013, Bravura Solutions Limited (BVA) was removed from the ASX's official list following implementation of a scheme of arrangement whereby Stockholm Solutions Pty Ltd, an entity owned by funds managed or advised by Ironbridge Capital Management Pty Limited, or its affiliates, has acquired all of the shares in the Company.