Finsoft Solutions Six Monthly Report
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Finzsoft Solutions Limited (FIN) | 10:21 am, Wednesday 19 November 2008 | FIN | 0.700 |
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FINZSOFT SOLUTIONS LIMITED
Results for announcement to the market
Reporting Period: Half-yearly report 30 September 2008
Previous Reporting Period: 6 months to 30 September 2007
Amount (000s); Percentage change
Revenue from ordinary activities: $4,782; 1%
Profit (loss) from ordinary activities after tax attributable to shareholders: $36; (76%)
Net profit (loss) attributable to shareholders: $36; (76%)
Interim Dividend: Gross amount per share; Imputed amount per share
No dividend is proposed to be paid: 0.00 cents; 0.00 cents
Directors Report – Six months to September 30th 2008
The Directors of Finzsoft Solutions Limited are pleased to report on the company’s performance for the six months ending 30th September 2008.
Finzsoft has demonstrated during this difficult period that it has a sustainable business model. Revenue for the period has remained constant and the company generated a profit.
Highlights
- Successful project implementation of Sovereign funding and lending modules with R.A.C.V in Melbourne, going live on the 1st September 2008
- Established a sales and support office in Sydney catering for increasing presence in Australia
- Increasing uptake of full environment service for clients including hosting of production and disaster recovery systems
- Ongoing development of next generation of Sovereign finance and banking software
- Identifying strategic partnerships to broaden the range and quality of the wider banking and finance software solution
- Strong balance sheet – no debt
Financial Results
Revenue for the six month period to the end of September 2008 was $4.782 million compared with $4.745 million for the corresponding period last year.
Net profit after tax of $36,000 was less than the corresponding period last year.
The balance sheet of period end has cash reserves of $1.1 million and current receivable of $1.6 million,
The company has recently taken further steps to ensure its cost structure is aligned to future revenue streams. To achieve this, the business addressed its organisation structure reducing the annualised employment cost by more than $1.5 million.
The Directors have not recommended an interim dividend for the half year to shareholders.
Banking and Finance Sector
As advised earlier in this report Finzsoft, has been impacted by the current difficulties being experienced by the global banking and finance crisis. Several of Finzsoft’s clients in this sector have been directly affected. As a result of this, our anticipated growth has not been achieved. Expected new license sales have been deferred as Banks and Finance organisations review their information technology strategies.
Product Development
Finzsoft continues to invest in the ongoing development of the Sovereign banking and finance solution.
A new generation of Sovereign is under development and will be progressively released to clients. The increased operator functionality and flexibility places Finzsoft in a strong position for future new sales.
Finzsoft is also identifying complimentary products and services to augment the existing product range. The outcome of this will enable the company to partner with complimentary providers, improving the quality and range of products currently available to clients.
Outlook
Despite the current business environment Finzsoft is operating profitably and has opportunities to grow all be it at a slower rate than considered ideal. The key focus is on supporting and developing to our existing clients. There are however potential sales despite the state of the global financial markets and with our ongoing product development, we are well positioned to benefit from these.
The Directors are strong in their belief that the company is appropriately structured to meet its client’s needs whilst being positioned well to see out the impact of a market downturn.
Directors reaffirm their advice that Finzsoft is forecasting a small profit for the current year.
D F HATTAWAY
CHAIRMAN
18th November 2008
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