Financial services software provider SilverBridge almost doubled revenue in the year to February.
SilverBridge has been on an acquisition spree and towards the end of the year bought lending software solutions company Acczone, for an undisclosed amount. The year before, it acquired 51% of insurance software solutions provider Ones & Zeros, for R12.3 million.
However, despite the recent acquisitions, the company says the bulk of revenue growth came from organic expansion, not purchases. Revenue grew 51%, from R70.6 million to R106.5 million.
CEO Jaco Swanepoel says Acczone contributed very little to the company's results. It did, however, feel a full year of benefit from Ones & Zeros, which only contributed towards the company for eight months in the previous year.
Acczone is expected to start adding to the bottom line this year.
SilverBridge grew operating profit 134%, from R9.3 million to R21.8 million, and net profit for the year 118%, from R7.4 million to R16.2 million. Profit growth filtered through to headline earnings per share, which jumped 112%, from 18.8c to 39.7c.
Positive pipeline
Swanepoel says the company's strategy is “bearing fruit”. “We have experienced healthy organic growth in implementation income, supported by annuity income streams, which helps ensure a sustainable business.”
SilverBridge generates annuity revenue from licences and maintenance after implementing software. Swanepoel says he expects good annuity revenue this year off the back of implementations last year, and the pipeline for roll out this year is healthy.
As a result, he expects to be able to continue growing revenue at a similar rate to the year under review. “Our previous results showed that we could perform in a recessionary environment, and as the market improves we are ready to take advantage of that.”
The company is also keeping an eye out for possible acquisitions. Swanepoel says it is looking at one or two possible takeover targets. However, these must add value to the company, he adds.
SilverBridge declared a 5c dividend and its shares were unchanged this morning at 205c.
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