|
The directors of Finzsoft Solutions Limited are pleased to report continued good company progress for the half year to 30 September 2006.
Highlights include:
Continuing growth in NZ and internationally.
Ongoing enhancement of our Sovereign finance and banking software.
Strong balance sheet - good cash reserves - no debt.
Interim dividend level maintained.
Results
Finzsoft half year results to September 2006 have trading revenue, at $4,101,000, up by 16% on the same period last year. Finzsoft continued to be cash flow positive, with the six month period recording an EBITDA (Earnings before interest, tax, depreciation and amortisation) of $533,000.
Our balance sheet at period end has cash at bank of $2.2 million and receivables of $1.3 million. This is a strong position from which to grow Finzsoft.
Further, the balance sheet does not reflect the continued investment and enhancement of our Sovereign finance and banking software product, and value, and this remains the Finzsoft main asset.
The directors are pleased to announce an interim dividend payment for the half year to shareholders registered at 24th of November 2006 (record date) trading ex dividend on November 27th . This interim dividend is a fully imputed 1.5 cents per share, payable on Friday December 8th 2006.
New Zealand The non-bank finance sector in New Zealand, which is our main client base and market, remains strong for the larger entities who utilise our software. The well publicised three finance companies who have failed were not among our clients. Many of our clients have exhibited very good financial results indeed.
However it is practical to recognise that overall sector growth may not continue as in recent years, and to plan accordingly. For Finzsoft, this means being aware of the pressures and requirements of the sector, and planning to continue to deliver clear benefits to those financial organisations who have our Sovereign software operating their core business function.
Finzsoft continues to look for new sector opportunities and these include promoting the expansion of our Diamond Card product - which utilises all ATM and EFTPOS services in NZ.
Existing and future legal compliance requirements will increase the need for non Bank finance organizations to utilise a software product in the nature of our Sovereign software - which brings to them shared compliance cost via the package structure, and which grows to meet all future requirements.
Australia Finzsoft now has three Australian finance operations utilising our software, these include St George Bank Ltd. The equipment and automotive lending business of St George Bank Ltd across Australia now operates utilising our Sovereign software.
The St George Bank implementation project was a substantial one for Finzsoft, drawing upon many of our resources. The scale has been a good platform to build and position our software and our company for similar larger scale projects.
Finzsoft marketing to identify new clients in Australia has returned to an active level. An Australian "Roadshow" in Queensland, NSW and Victoria was conducted with assistance by IBM Australia, and presented our Sovereign software to many Australian finance and banking organisations. We are in discussions with a number of organisations, and we are planning for a number of new implementations over the coming year. Interest remains strong.
Finzsoft has now moved from agent representation in Australia to direct activity, and a more structured Australia branch office presence is to be established.
Finzsoft believes in our ability to continue to compete successfully in Australia and New Zealand, while recognising the requirement for continuing product growth.
We have a good product, we are in a finance sector market which depends on proven IT systems, giving Finzsoft the capacity for significant business success.
International Finzsoft has sites with our software in Sri Lanka and in Barbados. However in the current period we have concentrated our exploratory moves into the USA market. The market in USA has many specialty software products for differing areas of finance activity. Finzsoft is concentrating on the automotive finance sector at this point.
Finzsoft has utilised industry trade shows to demonstrate our products and also to promote our search for a USA based business partner to work alongside. We had our own stand at the Auto Finance Summit 2006 in October in USA. We were alongside a number of the competitors in our field and in front of many hundreds of industry senior managers. The responses we gained, and further market information collected, was very positive and is being followed up.
Growth Finzsoft continues to operate with care to financial safety, having built our Sovereign finance and banking software, reached our current market penetration, and built a team approximating fifty staff, without incurring debt.
Our Sovereign finance and banking software is being built in pace with market requirements and requests.
This security of the Finzsoft ongoing performance is also most important to our clients, who require reliability of support and service.
Such caution means that Finzsoft shareholders have been protected from the fates of some other technology ventures operating at financial risk or building software with the market potential unproven.
The other side of the coin is that Finzsoft has not fully utilised the benefits of our listing status on the NZX. Equally we believe the market has not fully recognised our achievements and potential, especially at current market capitalisation levels.
The directors have the option of wider capital issue and expanded growth in marketing and product developments, and wider activities, under current review and will follow this route where suitable opportunities arise. A number of mechanisms are currently being considered.
The Directors thank those who have invested in our company and who have believed in our potential. We also thank our staff, and recognise the dedicated work achieved over this period. Your directors and staff at Finzsoft will continue to work to provide both growth and a sound return on investment for our company.
D F HATTAWAY B F SHANNON
Chairman Managing D irector
|
