Silverlake Axis 5CP , which focuses on software services for the financial sector, has reported earnings of RM169.6 million ($49.28 million) for its FY2023 ended June 30, dipping 7% from its earnings of RM182.2 million for the previous financial year.
Earnings per share also slipped 1% to 6.76 Malaysian cents for the period.
The company’s revenue, however, increased by 4% y-o-y to RM765.9 million for FY2023 — its highest recorded figure.
Its total recurring revenue, which gives better earnings visibility, also increased 5% y-o-y to RM569.4 million and accounted for approximately 70% of total FY2023 revenue.
Meanwhile, cost of sales stayed relatively flat at RM319.9 million, down by 1% y-o-y.
This saw the company’s gross profit increase 8% y-o-y to RM451.0 million with an aggregate gross profit margin of 59%, higher than the 57% achieved in FY2022.
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Silverlake Axis’ cash and cash equivalents stood at RM494.7 million for the 12 months ended June 30
“Financial services institutions continue to look for innovative and credible partners in their quest to transform how they deploy information technology in business,” says group managing director Andrew Tan.
He adds that many financial services institutions across Asia have yet to embark on technological change that brings tangible business outcomes. This could arise in “conflict between the old and the new”, creating a “sweet spot” in which Silverlake Axis can operate, says Tan.
He believes the company’s key markets continue to exhibit strong growth, the pace of economic recovery and digital transformation continues to accelerate and the financial services sector continues to display remarkable resilience.
Meanwhile, Silverlake Axis’ market positioning continues to improve as evidenced by its “encouraging” total contract wins of over RM635 million in FY2023, an increase of 27% compared to FY2022.
The company reported sepately that it had secured contracts worth approximately RM93 million to deliver digital innovation enhancement solutions to 73 of its existing customers in 4QFY2023.
Silverlake Axis shares closed unchanged at 26 cents on Aug 25.
