subscribe: Daily Newsletter

 

SilverBridge boosts profits 21%, revenues 17%

0 comments

JSE AltX-listed SilverBridge Holdings has announced a 17,2% rise in revenues and a 20,89% boost in operating profits for its 2008 financial year, ended 29 February 2008.

For the 12-month period, SilverBridge had revenues of R59,9 million, 17,2% up from last year's R51,079-million. Operating profits were R13,5-million, 20,89% up from R11,14-million last year.
Net profit was also up, at R9,8-million, 19,65% higher than R8,196-million reported for the comparable period a year earlier.
Earnings per share was 30,18 cents compared with 30,5 cents last year.
Cash on hand is R12,6-million, and annuity revenues now represent 43% of the company's revenues.
The company has announced it will conduct a capital distribution exercise representing a payout of R4.9-million and based on current shares in issue equals 15c a share.
"We have delivered results in line with our projections," says SilverBridge CEO Jaco Swanepoel. "We are pleased to be able to give our investors and other stakeholders such positive figures. The higher profits are a consequence of ongoing efficiencies in SDT Financial Software Solutions, the first subsidiary in our group.
This is the second set of financial results from SilverBridge delivered in line with forecasts.
"SDT has further refined its internal processes to make itself more efficient and reduce costs. It has simplified configuration and standardised the interface of its software applications, which have been in use for four years now, and are at a high level of maturity in terms of rapid deployment and training."
On listing, SilverBridge had stated that it would grow organically and through acquisition. The company continues to trade under a cautionary, and Swanepoel says this relates to a potential acquisition, which the company hopes to close shortly. It has a number of other acquisition prospects on its shortlist.
SDT continued to grow its customer base in the financial year, securing four new implementations, among them three in Africa. Prospects for the 2009 financial year are healthy, Swanepoel notes, despite the global economic downturn.
"As we operate in the financial services market, our customers tend to be relatively cushioned from the downturn," says Swanepoel. "And in a time like this they seek to cut costs, which dovetails with our offerings."
During the 12-month period, SilverBridge also concluded two BEE transactions, resulting in 34% of its shareholding being held by black-owned companies: Kagiso Trust Investments and Amabubesi.
SilverBridge listed in 2006 through the acquisition of the Synergy cash shell on the Development Capital section of the JSE, and moving the listing to the AltX. SDT, currently its only operating company, is a leading supplier of software to the financial sector, particularly the insurance industry, in Africa.