SilverBridge, a provider of insurance software solutions in the financial services industry, published its results for the year ended June 2018, showing a bid drop in operating profit.
Revenue for the year increased marginally to R94.9 million, from R93.1 billion before, while gross profit was up 4%. However, operating profit declined 36%, ‘impacted by an increase in indirect costs and once-off impacts relating to a provision for doubtful debt and a prior year
reversal of the provision for leave pay as reported in the interim period,” the group said.
Net profit declined by 55%, while headline earnings per share declined to 20.33 cents per share, from 41.51 cents per share in 2017.
The board declared a final gross dividend of 4.5 cents per share.
“Cashflow was good and our cash position increased to R13.5 million from R11.5 million at the previous year end. The balance sheet remains healthy and debt free,” SilverBridge said.
Looking ahead, it said it remains positive about the future despite a challenging period. “Although economic conditions are suppressed, we have seen an increase in optimism in our market. We continue to build our core annuity streams which will drive improved revenue growth for the group.
“We are pleased with the contribution that new initiatives are starting to make to the group, albeit slower than expected. We are excited about our product development and we remain optimistic that our efforts will help enable sustained growth,” SilverBridge said.
The group said that the financial services industry continues to face significant challenges and increased competition to meet its customers changing needs in an increasingly digital world.
“This results in many of our existing and potential clients searching for solutions to enable them to adapt quickly and more effectively. SilverBridge remains well positioned to meet these needs. It presents us with opportunities to create platforms that can help the industry to adapt and continues guiding our product development initiatives.”