Softline parent, Sage plc, today announced its unaudited results (prepared under UK GAAP) for the year ended 30 September 2005, reporting increased turnover of 14%* to lb776.6 million (R8.6 billion) and a 13% increase in pre-tax profit to lb205.4 million (R2.2 billion).
The leading supplier of accounting, payroll and CRM software listed its 6% organic growth and expanded customer base of 4.7 million businesses as strategic highlights.
On the local front, Softline CEO Ivan Epstein says the acquisition of Softline and ACCPAC proved its worth, contributing 17% to the group's overall revenue.
Contributing revenue of lb59.8 million (R667 million), Epstein's region, which includes South Africa and Australia, showed strong revenue growth and raised margins through increased support penetration, improved payroll solutions and migration of customers to mid-market solutions.
He says South Africa remains a market full of promise and believes 2006 will see continued growth and evolution of the SME sector.
"As an emerging market, our growth is higher, but I also believe that South Africa has an entrepreneurial economy and the resulting need for solid business infrastructure will continue to boost the local accounting, payroll and CRM sectors."
As a supplier of business software solutions to SMEs, Softline's growth strategy has been based on meeting the evolving business requirements with localised software and related services. Epstein says SME customers buy business software to address a variety of needs, ranging from basic book-keeping for small businesses, to business-wide solutions for larger, mid-market customers.
"As these needs change, our customers continue to enhance their solutions by selecting more advanced software from the broad range of products we offer."
Epstein says Softline's growth in the payroll sector is as a result of several elements such as increased market share, new products and the trend towards outsourcing. "Several SMEs choose to outsource the payroll function to ensure all FICA requirements are met and the function is well administered. Often preferring to use vendor expertise rather than managing the complexity of a payroll system themselves."
Customer relationship management (CRM) is another growth sector for Softline. Esptein believes CRM is no longer a 'nice to have' but a 'must have' in today's competitive landscape. Customer intimacy ranks as a top priority for most businesses and the only way for an organisation to be truly successful is to ensure it has a CRM solution in place.
"Direct interaction is not possible without an integrated CRM system. We anticipate further growth in this sector, coupled with an aggressive move towards complete software integration."
Epstein says Softline has a wide range of CRM solutions, including SalesLogix from Softline Enterprise, which was recently voted by Forrester Research as a leading CRM solution in the small and mid-market sector.
Viewing 2006 with eager anticipation, Epstein says Softline's future growth will be based upon continued investment in locally-developed business software solutions to meet the evolving needs of SMEs. The group will also continue focusing on providing exceptional support to its reseller partners and enhancing support for customers with locally-delivered services.
Visit www.softline.co.za for full results and commentary from Sage plc.
* Foreign currency results for the year ended 30 September 2004 have been retranslated based on the average exchange rates for the year ended 30 September 2005 to facilitate the comparison of results.
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Softline is a leading provider of accounting, payroll and CRM software solutions to small, medium and large companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in South Africa and Australia.
Focused on the development of accounting, payroll and CRM software solutions, Softline has a 16-year track record as a market leader. The group has a broad range of products offering users a variety of software solutions to run their businesses efficiently. Softline's leading brands include Softline Accpac, Softline Enterprise, Softline Pastel (Accounting and Payroll) and Softline VIP.
The combination of the group's product offerings, provide Softline customers with comprehensive, well-branded accounting, payroll and CRM software solutions.
In November 2003, Softline was acquired by Sage Group plc, an established FTSE 100 company. The group includes market-leading businesses throughout the United Kingdom, Europe, North America, South Africa and Australia, supplying business software to the small, medium and large business community.
Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll and CRM software solutions that improve the efficiencies of businesses around the world.
Sage
The Sage Group plc is a leading supplier of accounting and business management software solutions and related services for small, medium and large enterprises. It comprises market-leading businesses throughout Europe, United Kingdom, North America, South Africa and Australia. The Sage group plc has over 4.7 million small and mid-sized customers in 55 countries and 9 000 staff.
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