South Africa’s SilverBridge to report a loss

Mergers, Acquisitions and Financial Results

Listed financial services software provider SilverBridge will report a loss in the full-year to February, reversing its previous profitable position. The company says in an announcement to shareholders that it will report a headline loss per share of between 2c and 6c. The company's earning loss per share will be between 34c and 38c. A year ago, SilverBridge reported headline earnings per share of 39.7c and earnings per share of 39.8c.

In the announcement, SilverBridge says the loss per share includes a goodwill write down worth 32c. This figure has been stripped out of its headline loss per share number. The company did not provide other reasons for the reversal of its previous profitable position. However, its first-half results for the six months to August indicated it had issues with growing revenue at the level it would have liked.

In the first half of the year, SilverBridge reported revenue up 2%, to R52.2 million, but net profit slumped 68%, to R1.98 million. Basic earnings and headline earnings per share lost 78%, to 3.3c a share.

The slump in the first six months of the year was the result of projects being delayed, or not being aligned with client expectations, it said. SilverBridge has three business units: SDT Financial Software Solutions, Acczone and Ones 'n Zeros. Its results should be published on 17 May.