Silverlake Axis Q4 net profit edges up 3%

Silverlake Axis has posted a modest 3 per cent rise in fourth-quarter net profit to RM77.2 million (S$25.98 million) despite healthy revenue growth. The better bottom line was helped by growth in its maintenance and enhancement services, and higher software licensing revenue, which gives fatter margins.

The company provides digital economy services to clients across the banking, insurance, payment, retail and logistics industries.

Revenue in the three months ended June 30 jumped 32 per cent to RM166.9 million on the back of higher contributions from all segments except software project services.

The appreciation of the Singdollar and greenback against the Malaysian ringgit from a year ago also contributed about 11 per cent to the higher topline, the group said.

Fourth-quarter earnings per share was 2.9 Malaysian sen, up from 2.78 Malaysian sen a year earlier. Net asset value per share was 22.71 Malaysian sen as at June 30, from a restated 23.74 Malaysian sen a year earlier.

  • AT A GLANCE

  • REVENUE: RM166.9 million (+32%)

    NET PROFIT: RM77.2 million (+3%)

    FINAL DIVIDEND: 1 Singapore cent (-16.7%)

Full year net profit was RM273.8 million, down 3 per cent from a year earlier. A final dividend of one Singapore cent per share was declared, down from 1.2 Singapore cents per share last year. This resulted in a total dividend of three Singapore cents for 2016, down from 4.2 Singapore cents last year.

In a separate statement last Friday, Silverlake Axis said that its wholly-owned unit Cyber Village has secured six contracts over this quarter and the last, to deliver key components for customers' financial technology initiatives.

No dollar value was given, but the contracts are expected to contribute positively to the group's results in the current and following financial years, the group said.

The results were announced after market closed last Friday. The counter closed unchanged at 58.5 Singapore cents.

A version of this article appeared in the print edition of The Straits Times on August 29, 2016, with the headline 'Silverlake Axis Q4 net profit edges up 3%'. Print Edition | Subscribe