Silverlake Axis Q4 net profit down 12%, with Covid-19 hampering deal closure

FINTECH firm Silverlake Axis saw net profit fall 12 per cent to RM59.1 million (S$19.4 million) for the fourth quarter ended June 30, as the Covid-19 pandemic hampered the timely closing of deals, the firm said in its results release on Wednesday after the market closed.

Revenue for the quarter was down 17 per cent at RM156.8 million. Silverlake said the pandemic affected its ability to close deals in a timely manner "due to changes in customers' priorities" and the lockdown measures.

But it noted that there was no material disruption to its operations in the last financial year, as it continued to deliver on existing contracts and secured new ones.

Silverlake said: "Large deals continue to be a challenge to close due to economic uncertainties. However, the group's customers continue to implement smaller incremental projects and believe that this trend will continue through FY2021."

Earnings per share for the quarter were 2.25 sen, compared with 2.55 sen in the year-ago quarter.

A final dividend of 0.33 Singapore cents per share has been proposed for the quarter, less than half the 0.7 Singapore cent-per-share dividend for the year-ago quarter.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

If approved by shareholders at the upcoming annual general meeting, the final dividend will be payable on Nov 17. This would take the total dividend for FY2020 to 0.93 Singapore cents per share, down from the 1.8 Singapore cents for FY2019.

The fourth-quarter results take Silverlake's full-year profit to RM184.7 million, down 25 per cent from the previous year. Full-year revenue was RM663.7 million, down 3 per cent.

Silverlake shares closed up 1 Singapore cent or 3.39 per cent at 30.5 Singapore cents on Wednesday before the results were released.