JSE-listed SilverBridge has reported a headline profit of R466 309 in the first half of the year, after a R6.6 million loss at the end of the last financial year.
The company yesterday evening reported results for the six months to December. Revenue was down from the first half of 2011, at R41.7 million, compared with R47.6 million for the previous corresponding period. The group's profit, at R466 309, is lower than the year-ago figure of a gain of R2 million, but an improvement on its full-year loss.
SilverBridge went through a trying time a few years ago and had to retrench some staff. It reported disappointing results in 2010, due to delivery on projects being delayed or misaligned with client expectations.
Since then, it implemented a turnaround strategy and its R6.6 million loss for the 12 months to June 2012 was an improvement on the R24.3 million it lost in the prior 16 months.
In its results commentary, SilverBridge notes that annuity revenue continues to grow well.
"We are pleased with the 19% growth of our annuity revenue through software rental and support contracts. Despite this growth, we feel that the margin is still below target levels. What is positive is the fact that we have improved the profitability of all our segments," says CEO Jaco Swanepoel.
However, the group notes that, although improved, the implementation area remains under pressure. "Our current complex projects are being managed well to ensure delivery and mitigate risk, but this has been costly," it says.
SilverBridge reported operating expenses 9% lower than a year ago, at R41 million. It says it has made "good progress" in establishing a partnership network. "A small project has already been completed by a partner, and some support activity has been contracted out to the partner channel."
"Changing market conditions are providing us with new opportunities as financial service institutions search for ways to reduce costs and improve services to their clients," adds Swanepoel.
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