Silverlake Axis chalks up 30% gain in profit-after-tax in Q4 FY22

ENTERPRISE technology, software and services company Silverlake Axis (SAL) reported a 30 per cent year-on-year increase in profit-after-tax to RM47.9 million (S$14.9 million) for the fourth quarter ended June 30, 2022, in line with higher revenue.

Revenue increased 16 per cent to RM205.2 million thanks to higher contributions from project related revenue segments as well as a resurgence in insurance ecosystem transactions and services.

For the 12 months ended June 30, net profit was up 27 per cent year-on-year to RM182.15 million, while revenue rose 18 per cent to RM736.54 million on the back of higher revenue across its business activities.

The mainboard-listed group recorded a gross profit of RM418.6 million in FY22, 11 per cent higher from a year ago, although its gross profit margin was lower at 57 per cent in FY2022, compared with 60 per cent in the prior year.

SAL has declared a final dividend of 0.7 Singapore cent per share, up from 0.52 cent a year ago.

In FY22, SAL had contract wins totalling over RM500 million, and is closing the FY with RM1.9 billion worth of transaction value that it is actively pursuing, it said.

In a release to the Singapore Exchange, SAL highlighted that its key markets continue to show strong growth and that the pace of economic recovery as well as digital transformation continues to accelerate. It is investing in cloud, artificial intelligence and other technologies to expand its suite of solutions.

Andrew Tan, SAL’s group managing director, said: “We are confident of our prospects going into the new financial year and 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.”

The counter closed at 36 Singapore cents on Monday, shedding 1.5 cents or 4 per cent, ahead of the release of its financial results.