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FIN / Announcements

Finzsoft 2010 Half Year Report

10:13am, 29 Oct 2010 | HALFYR


Results for announcement to the market
Reporting Period Half-yearly report 30 September 2010
Previous Reporting Period 6 months to 30 September 2009
Amount (000s) Percentage change
Revenue from ordinary activities $3,679 (6%)
Profit (loss) from ordinary activities after tax attributable to shareholders $416 1140%
Net profit (loss) attributable to shareholders. $416 1140%

Interim Dividend Gross amount per share No Imputed amount per share
An interim dividend is proposed to be paid 2.00 cents
Record Date 15th November 2010
Dividend Payment Date 22nd November 2010

Comments: Refer to the section “Directors Report – Six months to September 30th 2010” for commentary.

Dividend Yield Current half year Previous corresponding half year
Dividend Yield* 9.5% 0.0%
Tax adjusted Dividend Yield** 6.67% 0.0%
*Based on annual gross dividend paid of 2.85 cents (2009: 0.0 cents) divided by 30 September 2010 share price of $0.30 per share
** Based on net dividend paid of 2.0 cents (2009: 0.0 cents) divided by 30 September 2010 share price of $0.30 per share

Directors’ Report
for the six months ended 30th September 2010

The Directors of Finzsoft Solutions Limited are pleased to report on the company’s performance for the six months ended 30th September 2010.
Although economic conditions did not show a significant improvement in this period, some of our clients experienced growth and accelerated their ICT investment. This was beneficial to Finzsoft resulting in a substantial increase in profitability, when compared with the same period last year and the 2010 financial year.

Some highlights include:
- Concluding strategic partnerships with HCL Technologies Limited (HCL) and NetFinance Solutions Inc (NFS) to broaden the range and quality of the wider banking and finance software solution into International markets such as the USA and Asia Pacific.
- A profitable 6 month period.
- A continuation of the development of the next generation Sovereign Finance and Banking software, including new Internet Banking, BOSS Loan Origination, extended web services, and the conversion to a new Java based SEEK architecture.
- Finzsoft continues to hold no debt, while funding development of Sovereign out of operating cash flow.

Financial Results
It is pleasing to report that during difficult market conditions the company recorded an after tax profit of $416,000, for the period ended 30 September 2010. This is compared with an after tax loss of ($40,000) for the previous half year and a profit of $272,000 for the 2010 financial year.
Despite the difficulties in the finance sector, Finzsoft achieved half year revenue of $3.7 million, which compares to revenues for the same period last year of $3.9 million and $7.2 million for the full 2010 financial year.
Given the improved performance of the company over this period, the Directors have recommended a non imputed interim dividend to shareholders of 2 cents per share.

Market Conditions
The impact of the Global Financial crisis continues to be felt by many participants in the Australasian finance and banking sector. Finzsoft is actively working with its existing clients to enhance their offerings, pursuing marketing initiatives to secure new clients and enhance relationships established with our new strategic partners. This strategy is expected to produce results over the medium and long term.

Product Development
Finzsoft continues to invest in the ongoing development of the Sovereign Banking and Finance solution and core business to accommodate future growth in new markets. Key projects include new functionality for Internet Banking, BOSS web based Loan Origination, extended web services, improved Document Management and publishing and the conversion to a new Java based SEEK architecture. The increased back office functionality, open industry standards compliant architecture and new product features and flexibility, places Finzsoft in a strong position for future new sales.

The Directors believe that Finzsoft is well positioned for future growth in its core products and for introducing new products to its suite. Opportunities have been identified in the Australasia, Asia and the USA and these are being vigorously explored.
As has been advised previously, often the lead time from identifying an opportunity through to securing a sale and then implementing the solution is a lengthy process. Although sales and marketing efforts indicate opportunities for future growth there is no certainty that new sales will be secured by the end of the current financial year. Consequently the Directors cannot predict the 2011 results with certainty.

For more information on our activities, please refer to our web site http://www.finzsoft.com

Authorised for issue on 29 October 2010

Don Hattaway