For the FY2022 ended June, Silverlake Axis Ltd’s earnings saw a 27% y-o-y increase at RM182.2 million ($56.8 million) from RM143.1 million.
Earnings per share for FY2022 are now 6.85 sen, up 25% y-o-y from RM5.49.
Silverlake Axis is an enterprise technology, software and services company that focuses predominantly on the financial services industry. The group currently serves 40% of the top 20 largest banks in Southeast Asia.
Revenue is RM736.5 million up 18% y-o-y from RM626 million.
Silverlake Axis’ ebitda saw a 14% increase to RM268.3 million as well for the financial year as well.
The group saw an 11% increase in gross profit to RM418.6 million, in addition to profit after tax increasing by 28% to RM182.7 million.
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Margins were at comfortable ranges for FY2022, with the group’s gross profit margin at 57%, net profit margin at 25%, and ebitda margin at 36%.
The group recorded revenue of RM736.5 million ($229 million), a growth of 18% over prior year, exceeding the previous high achieved in FY2019 by 8%.
RM95.3 million or 13% of the total group revenue was delivered via cloud computing compared to RM38.2 million or 6% in FY2021, an increase of 149% compared to the same period prior year.
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Revenue from Software-as-a-Service (SaaS) was RM38.0 million, an increase of 19% compared to RM31.8 million in the prior year. SaaS currently constitutes 5% of total group revenue which is at comparable level to the previous year.
In particular, the group’s project related revenue comprising software licensing and software project services (professional services) increased by 66% from RM105.4 million to RM175.1 million in FY2022.
At the same time, Silverlake secured contracts to deliver digital innovation enhancement solutions to 30 of their existing customers during 4QFY2022.
The contracts signed are with five regional banking franchises in Asean, six local banks, four banks in Thailand, four banks in Indonesia, two banks in United Arab Emirates, a bank in Brunei, Sri Lanka, Vietnam and Europe respectively, a Singapore multinational finance and insurance corporation, a large retail chain in Asia and two partners from Thailand and a German manufacturer of biometric identification system.
The contracts are primarily for enhancements to existing core banking systems in a bid to enhance customers’ digital experience, with an expected completion timeline of 12 to 18 months from the signing of the contracts.
As at June 30, cash and cash equivalents stood at RM128.2 million.
Andrew Tan, Silverlake Axis’s group managing director shares that as the pace of economic recovery and digital transformation continues to accelerate with time, Silverlake’s key markets continue to exhibit strong growth following a strong close to FY2022.
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“We are confident of our prospects going into the new financial year having delivered to our FY2022 plan,” says Tan. “While there are multiple headwinds that potentially can affect our continued growth, we are prepared and have the right mix of products and project delivery to meet any challenges.
“Our financial position remains strong and we are progressing well on the execution of our strategic plans,” he adds.
Shares in Silverlake closed at 36 cents on Aug 29.
