FINZSOFT SOLUTIONS LIMITED
FY11 Annual Results
The Directors of Finzsoft Solutions are pleased to report on the company’s performance for the year ended 31 March 2011.
Whilst the FY11 financial year was challenging, it is pleasing to report that Finzsoft has recorded a 101% increase of after tax profit of $545,151 compared to a profit last year of $271,558. This was achieved by refocusing the company on our core competence following the restructuring and realignment of operating costs made last year. This financial improvement, and a good cash position, enabled a dividend to be paid to shareholders in November 2010.
The Australian market represents a substantial proportion of our total revenue. We continue to attract and secure new business in this market, most notably with market leaders such as Harvey Norman and Westpac Bank.
We are also actively exploring new international market opportunities and have recently announced the appointment of a Regional Manager for Asia, Alan Blair, who is based in Singapore. The opening of a Singapore branch office will allow us to build our relationship with HCL and to develop and expand our Sovereign product offering in South East Asia and India.
In the US market, we have a joint venture partnership with NetFinance Solutions, Inc. (NFS), which is showing good signs of success. NFS provide a bureau service offering for SME financial institutions in the U.S and Canada. It is expected that the NFS bureau service will experience significant growth in these large international markets.
Despite the weak market conditions over the last three years, Finzsoft has continued to invest in developing the next generation of our Sovereign banking and finance software solution. We are also able to access high value technology and products from HCL to increase our solution offerings. The feedback from our existing and prospective clients on this new functionality has been very positive which bodes well for our sales opportunities into the future.
The Directors are confident that, as a result of these initiatives, the Company will deliver future returns to shareholders. However, as previously advised, the results for the FY12 financial year are forecast to be less than the FY11 results. This is due to our increased investment in the Sovereign banking and finance software solution and our increased investment in sales staff in support of our key partnership with HCL. As a consequence the Directors have resolved not to pay a further dividend to shareholders this year.
Results for announcement to the market
Reporting Period Full year report 31st March 2011
Previous Reporting Period 12 months to 31st March 2010
NZD Amount (000s) Percentage change
Revenue from ordinary activities $6,882 (5%)
Profit (loss) from ordinary activities after tax attributable to shareholders $545 101%
Net profit (loss) attributable to shareholders. $545 101%
Gross amount per share Imputed amount per share
Final dividend 0 cents 0 cents
Record date N/A
Dividend payment date N/A
Comments: Refer to the above for commentary from directors on the results to 31st March 2011
Dividends Paid Date Paid Cents per share (non- imputed)
Interim Dividend for the year ending 31 March 2011 22 November 2010 2.0
Final Dividend for the year ending 31 March 2010 N/A 0.0
Current full year Previous corresponding full year
Dividend Yield* 6.7% 0%
Tax adjusted Dividend Yield** 6.7% 0%
* Based on annual gross dividend paid of 2.0 cents divided by 31 March 2011 share price of $0.30 per share.
** Based on annual net dividend paid of 2.0 cents divided by 31 March 2011 share price of $0.30 per share.
Finzsoft Solutions Limited
30 May 2011