Driven by higher contributions from project related revenue segments and recurrent revenue segments, group revenue rose 12% to RM154.1 million
9M FY2019 Revenue and Net Profit Jumped 23% and 82% to RM490.6 million and RM178.1 million respectively
Newly acquired subsidiary, SIA X Infotech Group (“XIT Group”) contributed positively to both project related as well as recurrent revenue
With strong net cash inflow from operations, cash and bank balances rose 42% to RM430.6 million; balance sheet is solid with strong net cash position of RM348.5 million as of 31 March 2019
Proposed third interim dividend of Singapore 0.4 cents per share payable on 7 June 2019
Singapore, 14 May 2019 – Singapore Exchange Mainboard listed Silverlake Axis Ltd (“SAL” or the “Group”), a leading provider of Digital Economy Solutions to major organisations in Banking, Insurance, Retail, Government, Payment and Logistics industries, today announced a strong set of results for the third quarter and nine months ended 31 March 2019.
Q3 and 9M FY2019 Results Review
Despite the ongoing uncertainties in the global business conditions, SAL achieved 12% increase in group revenue to RM154.1 million in Q3 FY2019. The growth was broad-based across all major business activities. Due to the progressive delivery of two Malaysian core banking projects as well as new retail automation contracts in Vietnam and Hong Kong, project related revenue comprising software licensing
and software project services rose significantly by 73% and 21% to RM21.4 million and RM19.0 million
respectively. Coupled with maiden contribution from newly acquired XIT Group, project related revenue
totaling RM40.5 million rose 44% compared to Q3 FY2018. Under the recurrent revenue segments,
revenue from maintenance and enhancement services climbed 8% to RM98.9 million with progressive
revenue recognition for new enhancement contracts in Singapore, more enhancement requests in
Malaysia as well as consolidation of XIT Group’s contracts on hand. Revenue from Software-as-a-
Service for insurance processing also grew 14% to RM8.7 million as Merimen expanded business
activities into Thailand, Hong Kong and Vietnam and secured new customers in Malaysia and Indonesia.
In line with revenue growth, gross profit rose 14% to RM91.0 million. Better margin from maintenance
and enhancement services as well as increased contributions from higher margin software licensing
boosted gross profit margin to 59%. During Q3 FY2019, the Group obtained VAT exemption for the prior
disposals of GIT shares, resulting in a reversal of RM18.2 million in VAT and this contributed to the
increase in other income to RM20.5 million. Although the consolidation of XIT Group resulted in additional
selling and distribution costs, the increase was offset by the decline in administrative expenses due to
lower foreign currency exchange loss recorded during the quarter. However, finance costs were inflated
by the quarterly fair value adjustment on the contingent consideration payable for the acquisition of
Silverlake Investment Ltd. Group and XIT Group. With increased revenue, higher other income and
relatively stable total operating expenses, profit before tax grew 84% to RM60.9 million. Despite higher
income tax expense, the Group achieved a notable growth of 77% in net profit attributable to
shareholders to RM52.6 million in Q3 FY2019.
For 9M FY2019, group revenue increased by 23% to RM490.6 million and net profit attributable to
shareholders rose 82% to RM178.1 million. As of 31 March 2019, the Group’s balance sheet remained
solid with a strong net cash of RM348.5 million. As a reward to shareholders, the Board has proposed a
tax-exempt third interim dividend of Singapore 0.4 cents per share payable on 7 June 2019.