SilverBridge posted a profit after tax of R2.3 million for the year to June, reversing its previous loss-making situation a year ago, when it lost R6 million.
SilverBridge went through a trying time a few years ago and had to retrench some staff. It reported disappointing results in 2010, due to delivery on projects being delayed or misaligned with client expectations.
At half year, its profit came in at R466 309, which is lower than the year-ago figure of a gain of R2 million, but an improvement on its full-year loss.
"Over the last two years, the organisation has worked hard to become more efficient and reduce its expenses. With the year-end results, we are showing the market that the hard work is beginning to pay off," says CEO Jaco Swanepoel.
Revenue was slightly lower at R82 million, which the company described as "stable". Swanepoel says SilverBridge has been able to improve its efficiency and reduce costs, which led to margin gains. Costs dropped 9%.
"We have managed to reduce both our indirect and direct costs. The revenue of the business is still intact but our processes and personnel have become significantly more efficient. And together with a reduction in overheads, this has resulted in a reduction of costs."
Cash flow from operating activities was near zero, an R8.5 million improvement from last year. Shortly after year-end, R2.9 million in debt was collected.
Swanepoel says that, now it has consolidated processes and expenses, it is looking at generating more revenue. "Essentially, we have improved our internal operations and can now look outside the organisation to start generating more revenue. To this end, we will put renewed focus on local markets as well as those in eastern and southern Africa."
Revenue was affected by a 15% drop in implementation turnover. This was caused by SilverBridge being focused on one larger project, which generated lower-than-expected income.
As part of its consolidation, SilverBridge is building a solution eco-system with specialist and strategic partners. This includes improving its implementation and support methodologies, software testing processes, and training for both users and experts.
SilverBridge did not declare a dividend.
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