Softline, one of SA's leading suppliers of accounting, payroll and CRM software reported impressive half year results as a member of The Sage Group PLC.
Softline includes Sage Australia, which makes up the Southern Hemisphere geographical region of the Sage plc group. In its unaudited results released this week for the half-year ended 31 March 2005, the Sage Group reported increased turnover of 17%* to lb381.6 million (R4.4 billion) and increased pre-tax profit of 16%* to lb100.6 million (R1.177 million). Locally, Softline reported strong organic and acquisitive growth and is upbeat about its future as a leading player in the accounting, payroll and CRM sector.
"Our performance over the past six months is in line with our expectations and a direct result of new sales and strong growth in support revenue," says Ivan Epstein, CEO, Softline. "Our customers have matured and are now seeing the benefit of contracted support. As a result, the number of contracts sold have grown significantly and we anticipate further growth in this area."
Within the period reported, Softline invested in specialist IT skills and upgraded its support infrastructure. "This has enabled us to provide value-added support services to our existing and new customers," comments Epstein.
Already a market leader, Softline also attributes its growth to the increased need for payroll services within the small business sector. According to Rob Wilkie, Softline financial director, many small businesses are migrating from basic Excel spreadsheets to specialised payroll services. A factor driving this adoption is the new legislation, which has resulted in payroll services becoming more complicated to manage, prompting small businesses to implement specialised software.
Softline Pastel remains one of the group's flagship businesses which continues to grow and deliver sizeable profits. "There are still large amounts of small and medium-sized businesses that require accounting software to assist them to run their businesses efficiently," says Wilkie. "Softline Pastel remains top of mind and is often the first choice for these business owners."
Softline has successfully integrated Softline ACCPAC (formerly ACCPAC Africa) and Softline Enterprise (formerly Sage Enterprise) into its local operation within the reported period. Both these businesses have added to the overall profitability of the group and have also spearheaded Softline's move into the enterprise sector.
With over 200 000 customers, Epstein says the group will look for growth from services such as payroll outsourcing, human resource management software and CRM applications. They will also continue to focus on local product development ideally suited to the South African market. "Payroll outsourcing is a key growth area for us. There is an increasing demand for these kinds of services and through Softline VIP we are well placed to provide them," comments Epstein.
In terms of accounting, Epstein believes CRM software will remain a focus for the group, as will the provision of specialist services such as human resource management software.
Looking ahead, Softline's focus remains on growing its customer base, improving products and services and developing acquired businesses. "We continue to view 2005 with confidence," concludes Epstein.
* Foreign currency results for the period ended 31 March 2004 have been retranslated based on the average exchange rates for the six months ended 31 March 2005 to facilitate the comparison of results.
Share
Softline is a leading provider of accounting, payroll and CRM software solutions to small, medium and large companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in SA and Australia.
Focused on the development of accounting, payroll and CRM software solutions, Softline has a 16-year track record as a market leader. The group has a broad range of products offering users a variety of software solutions to run their businesses efficiently. Softline's leading brands include Softline Accpac, Softline Enterprise, Softline Pastel (Accounting and Payroll) and Softline VIP. The combination of the group's product offerings, provide Softline customers with comprehensive, well-branded accounting, payroll and CRM software solutions.
In November 2003, Softline was acquired by Sage Group plc, an established FTSE 100 company. The group includes market-leading businesses throughout the UK, Europe, North America, SA and Australia, supplying business software to the small, medium and large business community.
Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll and CRM software solutions that improve the efficiencies of businesses around the world.
Sage
The Sage Group plc is a leading supplier of accounting and business management software solutions and related services for small, medium and large enterprises. It comprises market-leading businesses throughout Europe, UK, North America, SA and Australia .The Sage group plc has over 4.5 million small and mid-sized customers in 55 countries and 8 000 staff.