Commenting on the Group's financial results for the 16 months ended June 30 2011, SilverBridge CEO Jaco Swanepoel says that the Group has completed the streamlining of its business with the integration of its operating subsidiaries into a single operating company called SilverBridge Software Solutions.
This process – combined with other cost-saving measures and a realignment of the Group's skills base and the effects of some challenging projects – had a negative impact on SilverBridge's results for the reporting period but will deliver financial benefits to the Group in the medium term. SilverBridge has also improved its solution design, implementation and client service methodologies.
"We have turned the corner," says Swanepoel. "Following the corrective actions of the previous financial period, we now have a business with a sustainable cost base and a service offering geared to meet the needs of our clients in the financial services industry."
SilverBridge is reporting financial results for a 16 month period because it has taken the decision to change its year end to 30 June to align it closer with the natural selling and delivery cycles of the business. During the period under review, SilverBridge generated revenues of R121.042 million compared to R106.508 million for the year ended 28 February 2010.
The Group made a loss after tax of R24.264 million compared to a profit of R16.160 million in the previous financial year. SilverBridge's bottom-line was impacted by goodwill impairment expenses of R22.970 million arising from the acquisitions of Ones & Zeros and Acczone.
Swanepoel says that SilverBridge saw pleasing growth in its support contracts and software rentals, which provide the Group with a stable stream of annuity revenues.
A key project at Absa is progressing well, with the financial services Group going live with the first phase of the implementation of SilverBridge's Exergy system in July, just outside of the financial period under review. In addition, SilverBridge has a strong order book for the coming financial year, including conversion of existing clients to the new Exergy solution as well as potential contracts with new clients.
"We are confident that we have resolved our operational and structural challenges," says Swanepoel. "The market remains competitive with long sales cycles and pressurised margins, but we are ideally placed to work with financial institutions as they search for ways to reduce costs and improve services to their clients."
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