Picture: ISTOCK
Picture: ISTOCK

Software developer Silverbridge’s share price rose 2.27% to R1.35 on Monday morning, despite reporting a drop in interim profit.

The company, which provides software products and support services to banks and life insurance companies, is among the smallest counters on the JSE, with a market capitalisation of R47m at Monday’s share price.

Interim results for the six months to end-December, published on Monday reflected a 3% revenue rise, from R46.1m to R47.4m in the corresponding period of 2016. The company blamed this on lower growth in the rental and support segments, partly the result of a tougher trading environment.

Operating profit fell from R6.2m to R2.8m, pushing net profit down 57% from R4.9m to R2.1m in the corresponding period. This was ascribed to an increase in indirect costs such as a provision for doubtful debt and investments being made into marketing and technology to support future revenue growth of new offerings

Diluted headline earnings per share (HEPS) fell 45%, from 13.13c to 6.77c. No dividend was declared for the period under review.

The company said its client relationships remained healthy, reporting on continued efforts to invest in the development of new offerings in cloud-based software applications, hosting and managed services.