Listed financial services software provider SilverBridge is putting its expansion plans on the backburner to focus on getting its current operations back up to speed.
The company's half-year results for the period to August indicate that it had several issues with growing revenue at the pace it would have liked. Revenue grew 2%, to R52.2 million, but net profit slumped 68%, to R1.98 million. Basic earnings and headline earnings per share lost 78%, to come in at 3.3c a share.
In its statement on the Stock Exchange News Service, the company said its financial performance for the period was “disappointing” due to projects being delayed or not being aligned with client expectations.
SilverBridge has three business units, SDT Financial Software Solutions, Acczone and Ones 'n Zeros.
SDT Financial Software Solutions had a difficult period delivering “on simultaneous complex projects”. Corrective action has now been taken, says the company, which included a retrenchment process.
CEO Jaco Swanepoel explains the company expects the results of its corrective measures to pay off during the second half of the year. He says revenue generation should be stronger during the second six months.
Swanepoel explains that, as a result of the focus on revenue generation, the company's expansion plans have been put on the backburner. In May, Swanepoel said SilverBridge was keeping an eye out for possible acquisitions. He said one or two possible takeover targets were being investigated.
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