Listed financial services software provider SilverBridge is still experiencing margin pressure and is looking at ways to trim its operating costs without retrenching staff.
In the year to February, the software developer reversed its previous profitable position as net profit fell 174%, from a gain of R16 million in the previous year, to a loss of R12 million. Its revenue dropped 13%, to R93 million.
CEO Jaco Swanepoel says the entire financial services software sector is still under pressure. SilverBridge's margins are under strain as clients want more, for less, in an environment where the financial services sector is under pressure to trim costs, he explains. “It's still tough.”
During the company's last financial year, it said increased complexity in implementing projects at “higher-tier” clients negatively affected results, which pushed revenue down and costs up.
SilverBridge retrenched about 25 people, out of an initial workforce of 150, in its last financial year. However, Swanepoel says the company has no plans to reduce its workforce further.
The company, which is currently in a closed period and cannot provide financial details, has a “number” of large projects lined up, notes Swanepoel. He says these will kick off in the next two to three months.
Swanepoel says the Absa project is a “major success” and the bank has extended the scope of the deal. Phase two is under way and will take about a year to wrap up, he adds.
In the past financial year, the company focused on finding a better way of using its assets to trim its cost base. He explains this led to the development of an execute-to-go solution, which speeds up implementation.
Swanepoel points out that SilverBridge can offer an out-of-the-box solution that only requires customisation, which reduces the amount of planning time required. “If we walk in, we have a template for every single thing.”
The company has also taken to outsourcing non-core development, he adds.
Share