Bravura Solutions co-founder quits after company fails to find suitor

Bravura Solutions co-founder Simon Woodfull has resigned, just weeks after the company announced it had been unable to reach an agreement to sell the struggling financial services software business.

Bravura shares plummeted on March 31 by about 20c to 15c after the company said it had been unable to complete a much-anticipated deal to sell the business to a unnamed third party, believed to be private equity firm Duke Street.

The shares recovered last week to around 19c, but dropped again on news that Woodfull has left the business.

Company chairman Brian Mitchell will stand in as interim CEO while the search continues for a new leader.

He was unavailable for comment this morning.

Woodfull’s departure comes less than 12 months after the resignation of co-founder Iain Dunstan in late February.

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.

Dunstan and Woodfulll 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, turning the two co-founders into paper millionaires.

Dunstan’s 30 million shares were worth more than $70 million, while Woodfull’s stake of 12 million shares was worth about $20 million, although the GFC has left the wealth of both men substantially reduced.

There is no word on whether Woodfull intends to retain his shares in the business, although it should be noted that Dunstan has not sold any shares since resigning.

It is also unclear whether Bravura’s biggest shareholder, private equity firm Ironbridge Capital, still wants to see the business sold.

The statement accompanying Woodfull’s departure said chairman Mitchell would “implement the business strategy as Bravura continues to further grow and develop” and the board has ceased work on “unsolicited” takeover proposals.

But with the share price still low, the company could still be a target of bargain hunters.