Bravura Solutions co-founder resigns

Iain Dunstan, the co-founder of wealth management software company Bravura Solutions, has resigned as chief executive, walking away from the business he helped start six years ago.

Dunstan’s co-founder, Simon Woodfull, will step into the role of sole group chief executive. The company has also changed its chairman, with former Oracle executive Brian Mitchell replacing Neil Broekhuizen.

Woodfull told SmartCompany this morning that Dunstan had no fixed plans but had decided the time was right to step away.

“It gives me the opportunity now to continue the execution of our strategy.”

But he admitted there was some emotion in seeing his co-founder depart.

“What we’ve been through has been quite interesting and we part still as good friends and will continue that friendship.”

Dustan’s resignation coincided with the release of Bravura’s first half earnings, with the company posting a net loss of $4.4 million compared to a profit of $2.6 million in the previous corresponding period. Revenue slipped 27.4% to $53 million.

The company has been buffeted by the GFC, which weighed heavily on its clients and pipeline of sales. However, Woodfull says the result was in line with the guidance given at the company’s AGM in late 2009, and there are signs the market is starting to come to life again.

“Certainly we are seeing the pipeline of opportunities come back on line, particularly since Christmas,” he says.

He says the focus in the next 18 months will be chasing the “more mature pipeline opportunities” particularly in Asia in the wealth management sector of the British market.

“We’ve got credibility and a good reputation there so it’s really about leveraging those relationships.”

Dunstan and Woodfull started Bravura in 2004, when they formed a company to buy the Australian wealth management software operations of their old employer, CSC.

The company listed in 2006 and its shares quickly shot up to $2.50, valuing Dunstan’s stake at over $71 million.

But the last few years have been more difficult for the company and its founders, with earnings under pressure from the GFC and the two men becoming caught up in the collapse of margin lender Lift Capital.

In May last year Woodfull and Dunstan announced a recapitalisation proposal that saw private equity firm Ironbridge Capital take a 30% stake in the business.

Dunstan’s stake, which was eventually recovered from Lift Capital with the help of a new margin loan from Ironbridge, is currently valued at over $4.5 million.

Woodfull said the deal with Ironbridge had helped speed up the company’s transition from a young, high-growth company into a more robust business.

“The business itself has gone through some dramatic and very rapid growth. We were already working through how we become a far more robust business, working through disciplines and process.”

“Someone like an Ironbridge just reaffirms the need for that.”