SilverBridge results not reflective of strategy

By Nicola Mawson, Contributing journalist

Johannesburg, 30 Nov 2006

Financial software provider SilverBridge, which listed on Monday, has released its interim results to end-August but says these are not a fair reflection of its true position.

The company, which at year-end reported R10.5 million in revenue and a net loss of R606 000, did not report revenue for the current six months under review. It did, however, report a narrower net loss of R448 000.

SilverBridge saw revenue of R38.3 million for the past financial year, with an operating proft of R7.5 million and net profit of R3.7 million, including secondary company tax on a special dividend.

SilverBridge was a reverse listing from the Development Capital Market, which saw the old Synergy shell company bought out. Its sole asset is SDT Financial Software Solutions.

In the company's commentary on the results, it warns the "acquisition of SDT Financial Software Solutions results in the interim results not reflecting a fair position on the financial state of the company".

For 2007, it forecasts revenue of R53 million, operating profit of R9.3 million and net profit of R7 million. In the following year, it expects revenue of R63.7 million, operating profit of R12.1 million and net profit of R8.9 million.

The company sold its only operating subsidiary, Prime Support, in the 2006 financial year and the interim results are representative of a cash shell company, it said.

As a result, its operations reflect increased interest income earned on increased bank balances, as well as rental income earned up to the final date of disposal of the buildings.

SilverBridge added, in a note to shareholders this morning, that it incurred costs, mostly as a result of the reverse listing from the Development Capital Market on the JSE's Alternative Exchange. The listing occurred after it acquired SDT.