Insurance software services provider SilverBridge has reported solid interim financial results for the six-month period ending 31 December 2016. Built around its growth in core annuity revenue, the net profit of the company increased by 22 percent to R4.9 million while its headline earnings per share grew 25 percent to 14.4c. It continued to focus on Africa as an area for growth.
“With an existing presence in 13 countries, Africa continues to be a focus showing significant opportunities for growth. We have also seen local companies express renewed interest to expand into the rest of the continent. To this end, we remain committed to providing world-class technology solutions catering for the diverse needs and requirements of clients across Africa,” says Lee Kuyper, financial director at SilverBridge.
This is reflected by the 22 percent year-on-year growth of its software rental revenue segment amounting to R21,7 million, up from the R17,8 million for the comparative period last year. With software rentals remaining a core focus of SilverBridge going forward, this has had a positive impact on its support division. The provisioning of higher value-added services has seen revenue in this division grow nine percent year-on-year to R18,5 million.
“The digital business landscape is providing impetus to our fledgling cloud-based hosting and managed services division. It is expected to become profitable once it gains scale. Already, existing and new clients have expressed an interest in moving to a cloud environment and benefiting from the cost-efficiencies this will result in,” he says.
Looking ahead, Kuyper believes that significant opportunity exists not only in cloud-based solutions but also in the provision of other digital technologies like analytics solutions and Software-as-a-Service.
“For us, it is all about leveraging our core business and experience with innovative technology solutions that assist companies seeking to evolve into more digital organisations. With our software catering for both small and large insurers, we are well-placed to provide a complete solution offering to clients. These clients are made of both traditional insurers looking to remain competitive as well as new entrants into the industry who, while more agile and innovative than traditional players, require the insight and experience we have to offer,” concludes Kuyper.
SilverBridge has over 20 years’ experience as a leading provider of insurance software solutions in the African financial services industry. Our footprint extends to 12 African countries. SilverBridge has introduced an enhanced service offering allowing financial services companies the opportunity to respond quickly to changing markets. With more than 30 customers throughout Africa, SilverBridge has the knowledge, experience, and technology to help its clients do better business.