Shares in Silverbridge lift despite drop in interim profit
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 offeringsDiluted headline earnings per share (HEPS) fell 45%, fr...
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