JSE-listed financial software provider SilverBridge reported a R6.6 million loss for the 12 months to June, an improvement on the R24.3 million it lost in the prior 16 months.
The group yesterday reported its full-year results and reported lower revenue of R82.6 million, a decline from the R121 million in the period to June 2011. However, its figures are not directly comparable as last year contained an additional four months of trading as it moved its year-end.
The market reacted positively to SilverBridge's numbers as its share price gained 188.46% ? or 49c - to end the day at 75c. Its 52-week high is 145c, which it hit on 25 November last year.
Earlier this month, after the group released a trading update warning of a loss, its shares lost half their value and slumped to 30c.
SilverBridge supplies more than 30 life assurance clients in 12 African countries. Its flagship platform is Exergy, which enables core back office policy administration in the life assurance industry. SilverBridge Holdings and SilverBridge Software Solutions Proprietary are jointly branded as SilverBridge.
Confident
However, despite the headline loss, the company is confident that new opportunities in the market will see the provider of software solutions to the financial services industry well positioned to retain and increase market share.
SilverBridge has completed two major implementation projects, which has secured future annuity rental and support income. However, the projects were completed above cost budget, which impacted the results.
CEO Jaco Swanepoel says "margins in the industry have come under pressure over the past few months and long sales cycles and difficult economic conditions have certainly not helped solution providers in this space".
Its other revenue segments, rental and support, grew as it gained clients, the group says in its results. Swanepoel says the company has put in place measures to ensure its future financial sustainability.
"Even though movement in the financial services industry is slow, we are starting to build momentum," he says.
SilverBridge says its Nedgroup Life project is progressing well and it is in the process of customising the installation of Exergy to meet Nedgroup Life's specific business needs. This includes how it signs up new business, collects premiums and pay claims.
The implementation project is expected to last another two-and-a-half years and SilverBridge will earn annuity income once phase one is completed, which is expected a couple of months away from the end of the current financial year.
Phase one of its Absa implementation is completed and the next phase will be planned later in the year, says SilverBridge. The group has also implemented its standardised offering, Exergy2Go, for another two new smaller clients and had its first implementation at a new client through a signed partner using Exergy2Go.
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