African insurance software firm SilverBridge records profit

South African insurance software solutions firm SilverBridge's rest of Africa operations helped it boost group revenue and profit for the period ended 30 June 2014.

SilverBridge, which operates in 12 other African countries, announced that its African revenue was up from R21.8 million in 2013 to R32.9 million for the year ended 30 June 2014.

SilverBridge's rest of Africa operations include Angola, Botswana, Kenya, Malawi, Mauritius, Nigeria, Ghana, Namibia, Lesotho, Swaziland, Zambia and Zimbabwe.

Meanwhile, in South Africa, the Johannesburg Stock Exchange (JSE) listed company's revenue declined from R60 million generated last year to just over R50 million in 2014.

Total group revenue increased from R82.2 million to R83.8 million during the same period while overall net profit rose from R2.3 million in 2013 to R5.9 million for the year ended 30 June 2014.

SilverBridge's chief executive officer Jaco Swanepoel said he was pleased with the results.

"Overall revenue increased marginally; however, our annuity-based rental revenue grew healthily, with a 9% increase from the previous year. In years past this was and remains a core focus area for our business," said Swanepoel.

"The growth in rental revenue was driven by a combination of increased usage by existing clients and the addition of new clients. After the allocation of direct costs related to warranty, maintenance and indirect costs, the SilverBridge rental segment made a good profit in comparison to the previous year," he explained.

According to a results statement, SilverBridge's 'Connect' support services segment gross profit was up 35% with the gross profit margin increasing to 58% from last year's 42%.

The Connect support services segment also achieved a profit of R6.1 million, which was an improvement from last year's profit of R2.3 million.

Meanwhile, the Connect implementation services segment, which implements solutions for clients and is project based, revenue declined by 8%.

Gross profit for the Connect implementation services segment, however; more than tripled, yielding a gross margin of 34% compared to last year's 9%, reads the results statement.