SilverBridge in 'much better position' this year

The group reported diluted headline earnings per share of 7.6c in its results released on Tuesday (17 September). In the previous period‚ it reported a headline loss per share of 16.9c as its new capital projects ran over budget.

Net profit for the year was R2.3m compared with a net loss of R6.6m in the previous year. SilverBridge said it was in a "much better position" this year.

"We have reduced the cost base‚ improved our methodologies and restored profitability‚" it said.

However‚ group revenue at R82.3m for the 2013 year‚ compared with R82.6m in the previous year‚ remained flat. This was largely due to revenue declining 15% in the group's project based implementation unit.

SilverBridge - a supplier to more than 30 life assurance clients in 12 African countries - said the segment had focused on a single large project that had produced lower revenue than expected.

The other segments fared better. The support unit grew revenue by 16% while software rental's revenue grew 3%.

Its costs declined 9% as the group had reduced direct costs and general overheads‚ aided by the use of internal staff rather than expensive external contractors‚ SilverBridge said.

The group was positive about its outlook and said it had made "good progress" on improving its overall delivery process while relationships with clients had also improved. However‚ it remained a "challenge" to put an implementation partner in place to do large implementations.

"The company needs to manage the risk in its large implementation project for Nedgroup Life‚" it said, explaining that it is helping Nedgroup Life replace its life policy administration platform over a three-year period.

The group said its ongoing goal was a focus on building its annuity revenue. SilverBridge did not declare a dividend for the period.