Listed financial services software provider SilverBridge has reversed its previous loss-making position in the first half of the year, an indication that its turnaround strategy is working.
The group, which has changed its year-end to June, reported revenue of R47.6 million, compared with turnover of R52.2 million in the six months to August 2010. In the 16 months to June, revenue was R121 million.
However, it reported a R2 million profit in the first half of the new financial year, compared with a R24 million loss in the 16 months to June 2011.
SilverBridge has integrated all its operating entities into a single company, streamlined management structures and trimmed costs.
“Although the results are not at previously achieved levels, the turnaround indicates the actions taken and renewed focus on our core business is producing positive results,” it says in a statement to shareholders.
Opportunities ahead
Swanepoel explains that SilverBridge would look for a partner to take advantage of the growing need for life insurance software in the country after the state unbundled the sector about a decade ago. “You don't go to India, someone takes you to India.”
SilverBridge currently has two large implementations. It signed up Nedgroup Life as a client, and its Absa project is expected to continue for about a year. It has also implemented its standardised offering, Exergy2Go, for two new smaller clients.
However, the company says margins are still under pressure as it adapts to providing services in the tier one market.
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