Silverbridge earnings curbed by major project costs

Provider of software and consulting services to the financial services industry‚ Silverbridge on Tuesday (25 September) reported a headline loss per share of 16.93 cents for the year ended June 2012 from headline earnings per share of 8.49 cents a year ago.

Its basic and diluted loss per share for the period narrowed to 19.04 cents from a loss of 71.47 cents in the corresponding period last year.

The group said in the JSE Sens announcement its financial results were negatively affected by two major projects which exceeded costs budgets.

“These projects have been completed and future annuity revenue has been secured‚” the group said.

“If the direct costs of resolving these projects were reversed and the opportunity cost added‚ then the results would have been in line with our overall budget‚” Silverbridge added.

The group’s revenue reached R82 million from the previous period’s R121 million.

“The performance over the past two years has put pressure on the business but measures that have been put in place will ensure future financial sustainability. The group is well positioned with sufficient work to fill capacity and generate the required revenue‚” the group said.

Silverbridge did not declare a dividend for the period under review.

The group remains optimistic about the coming financial year.

“Our annuity revenue remains a strong pillar for growth. Building it is an on-going goal that depends on how well we understand and empower our clients. Our ability to make implementations simpler and improve quality is important. We are engaged in several implementations and are actively securing new business‚” Silverbridge said.