AFA Systems benefits from Smacsoft acquisition

Johannesburg, 01 Oct 2001

AFA Systems SA, formerly the JSE-listed Smacsoft Group, contributed significantly to the results of London-listed AFA Systems in the six months to 30 June 2001.

The South African operations made a maiden four-month contribution of lb1.1 million to group revenue of lb4.1 million. Group revenue was up 88% on the same period the previous year.

Organic growth from the group`s existing businesses rose 37% to lb3 million and operating profit before exceptional charges and goodwill increased 30% to lb129 000.

AFA Systems provides software solutions for global financial markets.

"The first half of the year has seen strong progress for the group with sales for all products performing satisfactorily in a depressed market," says AFA Systems chairman and CE Mike Hart.

"Our acquisition of Smacsoft has been very successful and together with the underlying growth has materially increased the level of contracted recurring revenues across the group.

"Our aim is to be a leading player in international financial and investment management markets. Our strategy is to complement organic growth with strategic acquisitions of software products to provide customers with advanced, functionally rich, global solutions based on modern technologies supported by outstanding service."

Hart says the Smacsoft acquisition brought a wide range of highly successful software products to the group.

"Although we are operating in uncertain and volatile times, the pipelines for all the group`s products are strong and we are optimistic that further major orders will be signed before the year-end, the exact timing of which will impact our results for the year as a whole."

The group recently launched its locally developed customer relationship management application, CRM for Financial Markets, into Europe and the Middle East, in line with its strategy to use existing infrastructure to sell its products globally while continuing low cost development in SA.

"We have recently expanded our international sales team to include an international sales director and we now have a top-notch team in place to take our products into the global marketplace," says AFA Systems SA business development director JB Maree. "We expect to close two international deals by the end of the year."

"We have also just released AIMS, the new generation product which will be replacing and upgrading our flagship product SMAC, which in the last five years has become the de facto standard in the asset management industry," he adds.