Softlogic Finance announces phenomenal first half

The Leasing and Finance arm of the dynamic Softlogic Group – Softlogic Finance PLC, announced an exceptional run in the first half of the current financial year, recording all-time highs across the board. Increasingly gaining industry stature, the company has expanded rapidly, implementing a three year plan to gain significant market share and establish itself as a key player.

Total company assets which stood at Rs. 4.438 billion at 31 March 2011 rose by 82.15 per cent within the first half of the new fiscal year to Rs. 8.084 billion as at 30 September 2011. Compared to the Rs. 2.939 billion recorded as at end September 2010, this reflects an overall growth of 238 per cent over 12 months.

With its portfolio exceeding Rs. 8 billion, Softlogic Finance is now considered within the ‘Large Finance Companies’ category as classified by The Central Bank of Sri Lanka and has been rated as being Investment Grade by RAM Ratings. In a recent development, the credit-rating agency accorded the BBB-/P3 (Stable) rating to Softlogic Finance, further ratifying the company’s healthy credit policy and practices.  

Softlogic Finance recorded an income of Rs. 639 million for the six months ended 30 September 2011, rising by 146 per cent from the Rs. 260 million achieved at end September 2010. Profit after tax has mirrored the trend, increasing to Rs. 53.2 million from Rs. 22.5 million last year, a 136 per cent increase.

The exceptional result recorded at the end of this, the second quarter of fiscal year 2011/2012, confirms that the strategic growth plan of the Company is being successfully implemented, with exciting milestones to be surpassed in the coming months.

The Shareholder Funds of the company doubled from the Rs. 531 million recorded at 31 March 2011, to Rs. 1.063 billion at the end of its extremely successful second quarter, accumulating an increase of 4.4 times to the preceding end-September figure of Rs. 240 million.  

The substantial increase in the capital base was achieved thanks to a Rs. 535 million infusion via a well-timed Rights Issue conducted this August, in addition to a Rights Issue in November last year.  With the net worth of the Company surging, public deposits roared past the Rs. 3 billion milestone, recording Rs. 3.144 billion at end September 2011 with the Softlogic brand delivering significant mileage and growing by 100 per cent from Rs. 1.568 billion at 1 April 2011. The deposit base grew by 221 per cent as compared to the previous September figures of Rs. 980 million.

 A solid portfolio of financial solutions has been the bedrock of success for Softlogic Finance, with packages aimed at providing a meaningful and convenient fit for the requirements of their wide-ranging customer base island wide.

All products offered by the Company - Leasing, Hire Purchase, Business and Personal loans, Savings and Fixed Deposits - have shown dramatic growth, driven by a team of well experienced and highly motivated professionals. The total loan  portfolio rose by 215 per cent by the end of September to Rs. 7.179 billion from the previous September’s Rs. 2.280 billion, whilst the Non-Performing Loan ratio of less than 1 per cent has been rigidly maintained throughout, surpassing industry benchmarks.

“We have been concentrating on an aggressive expansion strategy”, stated Director/CEO of Softlogic Finance Mayura Fernando, adding, “Within the last half-year, Softlogic Finance has been reaching out to customers in all parts of Sri Lanka, including Nuwara Eliya, Polonnaruwa, Dambulla, Kadawatha, Embilipitiya, Chilaw and Badulla; not only in terms of new branch openings, but also with relocations of existing branches to provide our customers with a friendly and engaging experience.”

 Still in the pipeline are openings in Wellawatte, Nawala, Kurunegala, Anuradhapura and Jaffna. Meeting the increasing customer demand for Gold Loans, the company’s network of Gold Loan Centres has extended by 15 standalone sites within the past six months, accumulating to 25 centres extending Gold Loan services across Sri Lanka. These coupled with the company’s presence in expanding Softlogic Retail Stores, make up a network that exceeds 50 locations.

Quality service has been at the apex of the winning angle for Softlogic Finance as the company  successfully carves out its market share in the highly competitive financial services market of Sri Lanka. The parent Softlogic Group which acquired the finance company-then Capital Reach Leasing Ltd. - in 2010, believes that many more business synergies are yet to be reaped.  “The results at the end of the first half is testimony to many things - the dedication of the staff at all levels, tremendous customer acceptance and the upward trajectory taken by the economy,” stated Fernando. In successfully harnessing and nurturing these aspects, Softlogic Finance appears ready to ride out its success story through and beyond fiscal year March 2012.