Softlogic Finance records exceptional FY12

Softlogic Finance PLC, the leasing and finance arm of diversified group Softlogic Holdings, posted an exceptional 2011/12 financial year, recording an income of Rs. 1,531 million for the year ended 31 March 2012, which marks an increase of 135% over the previous year’s income of Rs. 651 million.

Strident growth is evident across all its financial indicators. Its profit after tax echoed similar sentiments, recording Rs. 106 million compared to Rs. 69 million in the preceding year, marking a clear 54% jump.

Ashok Pathirage, Chairman of Softlogic Holdings, the parent group of Softlogic Finance PLC, said: “I am gratified by the impressive financial results delivered by Softlogic Finance PLC within a short while since its acquisition by the Softlogic Group. This exceptional financial performance has vindicated our decision to invest in financial services which we espied much potential. Today, Softlogic Finance PLC is fully backed by the strength, reach and expertise of the Softlogic Holdings. We have exciting plans in store to propel our company into the forefront of the leading industry. Softlogic Finance has performed admirably on key performance indicators and I am confident that it will continue to meet and exceed expectations of investors and customers in the future as well.”

Aiming to be one of the top five finance companies in the country, Softlogic Finance PLC holds an impressive portfolio of customer assets amounting to Rs. 8.1 billion currently. The company continues to stay focused on its core target of SMEs that are considered the backbone of the Sri Lankan economy. Total company assets, which stood at Rs. 4.4 billion at 31 March 2011, more than doubled during the financial year to reach Rs. 10.1 billion as at 31 March 2012.

The financial year under consideration proved to be extremely fortuitous for the company in the realm of deposit mobilisation. The rapidly expanding presence of the company islandwide resulted in a deposit growth of more than threefold to stand at Rs. 4.6 billion at the end of 2011/12 in contrast to Rs. 1.6 billion in the 2010/11 period. The company was able to successfully maintain its above average industry Non Performing Loans (NPL) ratio of below 1%.

Strong investor backing has enabled the company to drive its growth strategy in a focused manner during the financial year. As a result of this investor confidence, Softlogic Finance PLC was in a position to double total shareholder funds through the cash infusion of Rs. 535 million by way of a rights issue.

The finance company’s strong growth story has been further underscored by its categorization as a ‘Large Finance Companies’ by The Central Bank of Sri Lanka with further affirmation via its rating as ‘Investment Grade’ by RAM Ratings. The credit-rating agency accorded the BBB-/P3 (Stable) rating to Softlogic Finance, which is a testimonial to the company’s strong balance sheet and future potential for growth.

“Softlogic Finance PLC’s outstanding financial performance has been born out of a well thought out strategy aimed at expanding our presence whilst leveraging on the unique niche we occupy in the industry, which targets the SME sector. Our strategy during the year consists of opening new branches and launching new products such as the Western Union Money Transfer and Margin Trading, which are synergistic products with our existing services and add value to our customers,” commented Mayura Fernando, Director and Chief Executive Officer of Softlogic Finance.