Softlogic Holdings ends FY14 on a high note

Tuesday, 3 June 2014 02:15 - - {{hitsCtrl.values.hits}}

The business performance of Softlogic Holdings PLC (SHL) was healthy with turnover almost reaching Rs. 30 billion in FY 2013/14 (up 15.6% YoY) along with the quarterly revenue steadily improving 18.9% YoY to Rs. 7.5 billion. This growth trend was primarily led by the Group’s healthcare, retail and financial service sectors. Group Gross Profit increased 19.1% YoY to Rs. 9.7 billion in FY14.

Gross profit rose by 19% to Rs. 9.8 billion whilst results from operating activities improved by 29% to Rs. 2.8 billion. Pre-tax profit amounted to Rs. 1.3 billion, up by 170.5% over FY13. In the 4Q it registered a strong 186.1% YoY growth to Rs. 284.4 million. After tax profit was Rs. 1.05 billion, up by 455% over FY13. The quarter recorded an impressive growth rate to Rs. 254.4 million. Earnings were chiefly derived from the healthcare and financial services sectors, followed by retail and ICT. Net profit attributable to equity holders rose by 173% to Rs. 249 million in FY14. A steady improvement in GP margins were noted during the period to 33.4% from 32% in the comparative period. Operating cost margins were contained at 25% despite the Group’s expansion mode. Sectoral Operating Profit contribution was led by healthcare services, retail and ICT. Finance Income which increased 42% YoY to Rs. 1.2 billion was as a result of investment income decisions at Asian Alliance Insurance PLC. Softlogic saw finance expenses increase marginally by 0.37% to Rs. 2.8 billion in FY14 due to the declining market interest rates. Consequently, Net Finance Expenses reduced by 17.5% YoY to Rs. 1.6 billion.