Wrap Text
SVB - Silverbridge Holdings Limited - Condensed group interim financial
statements for the 12 month period 28 February 2011
SILVERBRIDGE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration No. 1995/006315/06)
JSE SHARE CODE: "SVB" ISIN CODE: ZAE000086229
("SilverBridge" or "the Group")
Condensed group interim financial statements for the 12 month period 28 February
2011
Group Profile
SilverBridge offers clients in the financial services industry reliable
solutions that aim to simplify their operations by enabling and improving their
business processes. We achieve this by implementing our system platforms and
customising to meet client needs.
Exergy is our flagship platform that enables core back office policy
administration in the life assurance industry. The broader Exergy solution
package has specific applications which can be customised to suit the needs of a
long term insurer.
The loans administration intellectual property acquired from Acczone Systems
(Proprietary) Limited (Acczone) is being refreshed and updated into a modern and
flexible platform. We are reusing the Exergy framework to provide interest
bearing credit and debt administration capabilities.
The IT consulting competency gained by the acquisition of Ones `n Zeros
Professional Services (Proprietary) Limited (Ones & Zeros) has enhanced the
capability of SilverBridge to implement its systems and help clients manage the
resulting change in their operational environments.
The Group recently completed an extensive review of its internal processes and
collective intellectual property. We combined all the competencies and strengths
to deliver more efficiently and effectively. This has resulted in the
integration of the operating subsidiaries into SilverBridge Software Solutions
(Proprietary) Limited. SilverBridge Holdings Limited and SilverBridge Software
Solutions (Pty) Ltd are now jointly branded as SilverBridge.
We will continue to offer all the existing products and services under the
SilverBridge brand. This consolidation has significant cost benefits from
reduced overhead structures and will simplify the way we do business. We are
confident and excited about these changes and believe that our clients will
benefit from the improvements.
Financial Review
The Group changed its year end to 30 June to be more closely aligned to the
natural selling and delivery cycles of the business and to facilitate more
efficient planning and budgeting processes. The Group is therefore reporting on
its reviewed interim results for the 12 months ended 28 February 2011.
SilverBridge`s annuity revenue lines of software rental and support reflected
positive growth. The increased implementation complexity within higher tier
clients negatively impacted the results in this period. This was felt on both
revenue and cost levels as we had to invest into projects to realign
deliverables with clients` capacity and expectations. The allocation of highly
skilled resources to these projects reduced the revenue generating capability of
the Group as these resources could not be utilised on new projects. Delays in
project completion led to delayed software rental and support income. The
acquisition of Acczone increased our cost base but did not deliver on revenue
expectations. Goodwill on Acczone and Ones & Zeros was fully impaired owing to
uncertainty in the market and integration of the subsidiaries into one operating
company.
As reported at the last interim period (ending 31 August 2010), SilverBridge
took action to reduce costs and realign skills. We improved our solution design,
implementation and client service methodologies and aligned our operations
accordingly. Project deliverables were also reassessed in conjunction with
clients on specific projects. We integrated the group structure into a single
operating entity to ensure focus and to further reduce the cost base. These
corrective actions have had a negative impact on the current operational
performance but are expected to bring financial benefits over the medium term.
Operational Highlights
1) Lessons learnt from complex projects
We have learnt that although our core solution is comprehensive, it requires a
focused effort to ensure that the customisation for clients falls within their
end-to-end solution needs.
During the past year we have been confronted with the need to explicitly
understand the complete business process environment of our clients in order to
fully realise IT enablement on the processes that our systems impact. The way to
achieve the objectives of a system implementation project is to ensure that we
understand the clients` specific end-to-end environment.
Projects come under pressure when we cannot help our clients to understand the
end-to-end solution that they need and support them in enforcing the
implementation thereof.
2) Progress with implementation approach
We have made good progress with implementing the Exergy system for clients. We
have managed to implement our standardised offering, Exergy2Go, for two clients
in a matter of weeks and they are now customising it to their requirements.
3) Implementation wins
The ABSA project is healthy and making good progress. We have a strong sales
pipeline for new Exergy implementations including converting the majority of our
existing clients from our old system. We are currently engaged in three such
conversion projects that are making excellent progress.
Group Outlook
Building our annuity revenue base remains an ongoing goal and depends on how
effectively we understand and empower our clients. Annuity income consists of
software rental and contracted support revenue. These are driven and preceded by
consulting, implementation and customisation engagements. Extensive intellectual
property resides in our systems and people.
The lessons learnt from the past year are now embedded in our project approach
and improvements to our intellectual property base. We have faced and overcome
significant challenges in the way we contract and execute on projects. We have
redesigned our operating model to better retain, transfer and leverage our
knowledge.
The changing environment within our target market is creating new opportunities
as financial service institutions search for ways to reduce costs and improve
services to their clients. We see financial service providers increasing their
focus on improving relationships with their clients. SilverBridge`s offerings
are well positioned to meet these needs.
The outlook for the Group remains positive. Our annuity revenue remains a strong
pillar for growth. The corrective actions we have taken during this period have
better positioned the Group for future growth from a solid base.
Condensed Consolidated Statement of Comprehensive Income
for the 12 month period ending 28 February 2011
Reviewed Audited
12 months 12 months
ended ended
28 February 28 February Percentage
2011 2010 Change
R`000 R`000 %
Revenue 92 933 106 508 (13)
Other income 378 1 232 (69)
Personnel expenses (69 349) (62 215) 11
Depreciation and amortisation (2 968) (3 383) (12)
Professional fees paid for (9 701) (8 045) 21
services
Impairment of goodwill (11 233) - 100
Other expenses (11 323) (12 409) (9)
Finance income 335 1 001 (67)
Finance expense (12) (517) (98)
(Loss)/profit before taxation (10 940) 22 172 (149)
Taxation (1 054) (6 012) (82)
(Loss)/profit and total
comprehensive
income for the period (11 994) 16 160 (174)
Net (loss)/profit and total
comprehensive income
attributable to:
Equity holders of the parent (12 620) 13 540 (193)
Non-controlling interest 626 2 620 (76)
(11 994) 16 160 (174)
Number of shares in issue 34 675 34 675
(`000)
Weighted average number of 34 675 34 034
shares in issue (`000)
Diluted weighted average number 34 675 40 386
of shares (`000)
Basic (loss)/earnings per share (36.4) 39.8 (191)
(cents)
Headline (loss)/earnings per (4.0) 39.7 (110)
share (cents)
Diluted (loss)/earnings per (36.4) 32.4 (212)
share (cents)
Diluted (loss)/headline (4.0) 32.3 (112)
earnings per share (cents)
Reconciliation of headline and
diluted headline
(loss)/earnings
Basic and diluted (12 620) 13 540
(loss)/earnings
Impairment of intangible assets 11 233 -
Adjusted for loss/(gain) on 12 (15)
disposal of equipment
Headline and diluted (1 375) 13 525
headline(loss)/earnings
Condensed Consolidated Statement of Financial Position
as at 28 February 2011
Reviewed Audited
as at as at
28 February 28 February
2011 2010
Note R`000 R`000
ASSETS
Non-Current Assets
Equipment 2 826 2 229
Intangible assets 1.5 18 733 38 095
Investment in associate 110 110
Deferred tax assets 4 293 2 148
Total Non-Current Assets 25 962 42 582
Current Assets
Income tax receivable 6 744 5 700
Revenue recognised not yet invoiced 1.2 409 6 657
Trade and other receivables 17 543 15 364
Cash and cash equivalents 7 623 14 432
Total Current Assets 32 319 42 153
Total Assets 58 281 84 735
EQUITY AND LIABILITIES
Capital and Reserves
Issued capital 348 348
Share premium 11 871 11 871
Treasury shares (197) (197)
Share based payment reserve 738 91
Retained earnings 27 443 41 798
Total equity attributable to quity 40 203 53 911
holders of the parent
Non-controlling interest 2 057 3 881
Total Equity 42 260 57 792
Current Liabilities
Deferred revenue 1.2 5 133 1 314
Trade and other payables 1.4 10 888 24 805
Provisions - 824
Total Current Liabilities 16 021 26 943
Total Equity and Liabilities 58 281 84 735
Net asset value per share (cents) 121.87 166.67
Net tangible asset value per share 67.85 56.8
(cents)
Condensed Consolidated Statement of Changes in Equity
for the 12 month period ended 28 February 2011
Attributable to equity holders of the
Company
Issued Share Treasury Acquisition
capital premium shares shares
R`000 R`000 R`000 R`000
Balance at 1 March 2009 336 8 608 (197) 2 724
Total comprehensive income
for the period
Profit or loss - - - -
Other comprehensive income - - - -
Total comprehensive income - - - -
for the period
Transactions with owners,
recorded directly in equity
Contributions by and
distributions to owners
Allotment of 1193 849 shares
related to
acquisition of Ones & Zeros 12 3 263 - (2 724)
Equity settled share based - - - -
payment
Capital distribution amounts - - - -
not exercised
Dividend paid by subsidiary - - - -
Total contributions by and 12 3 263 - (2 724)
distributions to owners
Changes in ownership
interests in subsidiaries
that do not result In a loss - - - -
of control
Total transactions with 12 3 263 - (2 724)
owners
Balance at 28 February 2010 348 11 871 (197) -
Total comprehensive income
for the period
Profit or loss - - - -
Other comprehensive income - - - -
Total comprehensive income - - - -
for the period
Transactions with owners,
recorded directly in equity
Contributions by and
distributions to owners
Equity settled share based - - - -
payment
Minority interest in - - - -
dividend payment by
subsidiary
Dividend payment by holding - - - -
company
Total contributions by and - - - -
distributions to owners
Total transactions with - - - -
owners
Balance at 28 February 2011 348 11 871 (197) -
Share
based Non-
payment Retained controlling Total
reserve earnings Total interest equity
R`000 R`000 R`000 R`000 R`000
Balance at 1 March 2009 - 28 242 39 713 3 531 43 244
Total comprehensive
income for the period
Profit or loss - 13 540 13 540 2 620 16 160
Other comprehensive - - - - -
income
Total comprehensive - 13 540 13 540 2 620 16 160
income for the period
Transactions with
owners, recorded
directly in equity
Contributions by and
distributions to owners
Allotment of 1193 849
shares related to
acquisition of Ones & - - 551 - 551
Zeros
Equity settled share 91 - 91 - 91
based payment
Capital distribution - 16 16 - 16
amounts not exercised
Dividend paid by - - - (2 270) (2 270)
subsidiary
Total contributions by 91 16 658 (2 270) (1 612)
and distributions to
owners
Changes in ownership
interests in
subsidiaries
that do not result In a - - - - -
loss of control
Total transactions with 91 16 658 (2 270) (1 612)
owners
Balance at 28 February 91 41 798 53 911 3 881 57 792
2010
Total comprehensive
income for the period
Profit or loss - (12 620) (12 626 (11
620) 994)
Other comprehensive - - - - -
income
Total comprehensive - (12 620) (12 626 (11
income for the period 620) 994)
Transactions with
owners, recorded
directly in equity
Contributions by and
distributions to owners
Equity settled share 647 - 647 - 647
based payment
Minority interest in - - - (2 450) (2 450)
dividend payment by
subsidiary
Dividend payment by - (1 735) (1 735) - (1 735)
holding company
Total contributions by - (1 735) (1 735) (2 450) (3 538)
and distributions to
owners
Total transactions with - (1 735) (1 088) (2 450) (3 538)
owners
Balance at 28 February 738 27 443 40 203 2 057 42 260
2011
Condensed Consolidated Statement of Cash Flows
for the 12 month period ended 28 February 2011
Reviewed Audited
12 months 12 months
ended ended
28 February 28 February
2011 2010
R`000 R`000
Cash generated from operations 7 473 18 777
Interest received 335 939
Interest paid (12) (10)
Minority interest in dividends paid by (2 450) (2 270)
subsidiary
Taxation paid (2 822) (6 201)
STC paid (500) (463)
Net cash inflow from operating activities 2 024 10 772
Cash flows from investing activities
Plant and equipment acquired to expand (1 927) (1 734)
operations
Proceeds from sale of equipment - 104
Acquisition of Ones & Zeros - (3 535)
Acquisition of Acczone - (3 241)
Listing fees set off against share - (8)
premium on the issue of shares
Capitalisation of development costs (5 174) ( 2 759)
Net cash (outflow) from investing (7 101) (11 173)
activities
Cash flows from financing activities
Dividends paid to equity holders of the (1 732) -
parent
Reduction in liability of previous - (1 265)
period`s capital distribution from share
premium
Net cash outflow from financing (1 732) (1 265)
activities
Net decrease in cash and cash equivalents (6 809) (1 666)
Cash and cash equivalents at the 14 432 16 098
beginning of the period
Cash and cash equivalents at the end of 7 623 14 432
the period
Consolidated Segment Reports
for the 12 month period ended 28 February 2011
Reportable segment report
Implemen-
tation Support
Total services services
R`000 R`000 R`000
Reviewed 12 months ended 28 February 2011
Segment total revenue 98 144 32 237 17 542
Segment revenue inter-company (5 211) (477) -
Segment revenue external 92 933 31 760 17 542
Direct segment cost (57 847) (19 582) (13 491)
Cost capitalised 5 173 - -
Segment gross profit 40 259 12 178 4 051
Indirect segment cost (31 325) (11 170) (7 146)
Segment result 8 934 1 008 (3 095)
Unallocated expenses (8 964)
Operating loss (30)
Impairment loss on goodwill (11 233)
Finance income 335
Finance expense (12)
Income tax expense (1 054)
Loss for the period (11 994)
Software
Research & Consulting rental
development income & other
R`000 R`000 R`000
Reviewed 12 months ended 28 February
2011
Segment total revenue - 19 940 *28 425
Segment revenue inter-company - (4 735) -
Segment revenue external - 15 205 28 425
Direct segment cost (14 653) (10 121) -
Cost capitalised 5 174 - -
Segment gross profit (9 479) 5 084 28 425
Indirect segment cost (8 115) (4 894) -
Segment result (17 594) 190 28 425
Unallocated expenses
Operating loss
Impairment loss on goodwill
Finance income
Finance expense
Income tax expense
Loss for the period
* A license fee of R4.9 million is included in the software rental and other
revenue - in this period and not in the previous period.
Assets and liabilities
The assets and liabilities of the Group are organised and managed at a corporate
business support level. As the assets and liabilities contribute at a corporate
level, it is not practical to determine a reasonable allocation of the assets
and liabilities to the business segments.
Consolidated Segment Reports
for the 12 month period ended 28 February 2011
Reportable segment report (continued)
Implemen-
tation Support
Total services services
R`000 R`000 R`000
Audited 12 months
ended 28 February 2010
Segment revenue from external clients 106 508 39 326 12 667
Segment revenue inter-company - - -
Direct segment cost (54 891) (19 856) (7 414)
Cost capitalised 2 759 - -
Segment gross profit 54 376 19 470 5 253
Indirect segment cost (26 351) (11 176) (4 172)
Segment result 28 025 8 294 1 081
Unallocated expenses (6 346)
Operating profit 21 679
Finance income 1 001
Finance expense (517)
Share of profit in associate 9
Income tax expense (6 012)
Profit for the period 16 160
Software
Research & Consulting rental
development income & other
R`000 R`000 R`000
Audited 12 months
ended 28 February 2010
Segment revenue from external - 31 931 22 584
clients
Segment revenue inter-company - - -
Direct segment cost (9 108) (18 513) -
Cost capitalised 2 759 - -
Segment gross profit (6 349) 13 418 22 584
Indirect segment cost (4 760) (6 243) -
Segment result (11 109) 7 175 22 584
Unallocated expenses
Operating profit
Finance income
Finance expense
Share of profit in associate
Income tax expense
Profit for the period
Assets and liabilities
The assets and liabilities of the Group are organised and managed at a corporate
business support level. As the assets and liabilities contribute at a corporate
level, it is not practical to determine a reasonable allocation of the assets
and liabilities to the business segments.
Commentary
1. ACCOUNTING POLICIES
1.1. Basis of presentation
The accounting policies applied in the preparation of these condensed interim
financial statements, which are based on reasonable judgments and estimates, are
in accordance with International Financial Reporting Standards ("IFRS") and are
consistent with those applied in the annual financial statements for the year
ended 28 February 2010. These condensed financial statements as set out in this
report have been prepared in terms of the AC500 series, IAS 34 - Interim
Financial Reporting, the Companies Act, 1973 (Act 61 of 1973), as amended, and
the Listings Requirements of JSE Limited.
KPMG Inc., the company`s independent auditors, have reviewed the interim
financial information contained in this interim report and have expressed an
unmodified conclusion on the interim financial information. Their review report
is available for inspection at the company`s registered office.
1.2. Deferred revenue and revenue recognised not yet invoiced
Deferred revenue and revenue recognised but not yet invoiced refers to the
timing difference between recognition of revenue and invoicing to the client
based on the contracts. The Group is in a net liability position which means it
has received more cash than what has been recognised as income which has a
positive impact on working capital. These current liabilities will be converted
to revenue in the short-term and are recoverable from the current client base.
Reviewed Audited
12 months 12 months
Ended ended
28 February 28 February
2011 2010
R`000 R`000
Current asset
Revenue recognised not yet invoiced 409 6 657
Current liability
Deferred revenue (5 133) (1 314)
Net (liability) / asset (4 724) 5 343
1.3. Revenue per geographical segments
Other
African
Total South countries*
Africa
R`000 R`000 R`000
Reviewed 12 months ended 28 February 92 933 61 812 31 121
2011
Audited 12 months ended 28 February 106 508 70 293 36 215
2010
* Other African countries include Kenya, Malawi, Nigeria, Ghana, Namibia,
Lesotho, Swaziland and Zimbabwe.
1.4. Trade and other payables
Reviewed Audited
12 months 12 months
ended ended
28 February 28 February
2011 2010
R`000 R`000
Trade payables 1 866 734
Withholding tax rebate payable 4 657 5 036
VAT payable - 489
Leave accrual 1 517 1 621
Liability on capital reduction 29 29
Liability on dividend payment 2 -
Other payables (accruals) 2 817 5 159
Acczone purchase price liability - 11 737
Total 10 888 24 805
1.5. Intangible assets
1.5.1 Intangible assets summary of movements during the period per category of
asset
Contracts Develop-
capitalised in ment cost
Goodwill acquisitions capitalised Total
Group R`000 R`000 R`000 R`000
Cost
Balance at 1 March 16 641 2 845 5 869 25 355
2009
Arising on 14 196 794 - 14 990
acquisition of
Acczone
Change in estimate (43) - - (43)
relating to Ones &
Zeros acquisition
Development costs - - 2 759 2 759
capitalised
Balance at 28 30 794 3 639 8 628 43 061
February 2010
Change in estimate (11 737) - - (11 737)
relating to Acczone
acquisition
Impairment of (2 459) - - (2 459)
goodwill arising on
Acczone acquisition
Impairment of - (353) - (353)
contracts
capitalised on
acquisition of
Acczone
Impairment of (8 420) - - (8 420)
goodwill arising on
Ones & Zeros
acquisition
Development costs - - 5 173 5 173
capitalised
Balance at 28 8 178 3 286 13 801 25 265
February 2011
Accumulated
amortisation
Balance at 1 March - 1 232 1 410 2 642
2009
Amortisation for the - 1 701 623 2 324
year
Balance at 1 March - 2 933 2 033 4 966
2010
Amortisation for the 353 1 213 1 566
year
Balance at 28 - 3 286 3 246 6 532
February 2011
Carrying amount
At 1 March 2009 16 641 1 613 4 459 22 713
At 28 February 2010 30 794 706 6 595 38 095
At 28 February 2011 8 178 - 10 555 18 733
1.5.2 Impairment testing of goodwill
Goodwill of R8.1 million acquired by the Group through the reverse acquisition
of SilverBridge Holdings has been allocated to SilverBridge Software Solutions
(Pty) Ltd, being the smallest cash generating unit which will benefit from the
acquisition. The recoverable amount of the goodwill has been determined based on
a value in use calculated by using cash flow projections and a discount rate
applied of 18%. The recoverable amount calculated was higher than the goodwill
amount and therefore the goodwill was not impaired.
Goodwill of R8.4 million acquired by the Group through the acquisition of Ones &
Zeros has been allocated to Ones & Zeros, being the smallest cash generating
unit which will benefit from the acquisition. The goodwill was fully impaired
based on the current cash flow projections, the current market conditions and
the integration of this business unit into SilverBridge operating company,
Goodwill of R2.5 million acquired by the Group through the acquisition of
Acczone has been allocated to Acczone, being the smallest cash generating unit
which will benefit from the acquisition. Based on the current cash flow
projections and the current market conditions the goodwill was fully impaired.
1.5.3 Development cost capitalised
Development activities involve a plan or design for the production of new or
substantially improved products and processes. Development expenditure is
capitalised only if development costs can be measured reliably, the product or
process is technically and commercially feasible, future economic benefits are
probable, and the Group intends to and has sufficient resources to complete
development and to use or sell the asset.
The development cost is currently amortised over the estimated useful lives.
Management has reviewed the estimated useful lives of the software and believes
these estimates are reasonable.
Products still under development have been tested for impairment. No impairment
was found or noted. The recoverable amount was determined based on a value in
use calculation, using cash flow projections over a five year period, based on
financial estimates and applying a discount rate of 18%.
The book values of the development cost are made up as follows:
Exergy software and complementary products and tools R6.4 million
Redevelopment of the loans administration system R4.1 million
bought from Acczone
2. CORPORATE ACTIVITY
2.1. Acquisition of Acczone
There was no additional consideration paid for the Acczone acquisition
subsequent to the original amount of R3 million as none of the profit warranties
were achieved.
2.2 Changes to the board
Mr Robert Emslie was appointed as an independent non-executive director, with
effect from 17 January 2011.
Subsequent to the period end Sandra Duetsch changed from being an executive
director to a non-executive director following the acquisition of the minority
shareholding in Ones & Zeros by SilverBridge Holdings.
2.3 Dividends and Capital distribution
The board declared a dividend of 5 cents per share on 5 May 2010. No further
dividend or capital distribution was declared for the period under review.
2.4 Subsequent events
As part of the process of integrating the operations of SilverBridge, the Group
has acquired the remaining 49% of Ones & Zeros for an amount of R 2.5 million to
be settled in cash. This will enable SilverBridge to integrate the specific
skills of Ones & Zeros into the operations and entrench the consulting approach
into our implementation methodology. Consolidating the companies will decrease
overhead cost structures and ensure operational focus. Acquiring the 49% from
the non-controlling shareholders will not create any goodwill as the business
combination was already formed at the initial acquisition.
FINANCIAL RESULTS AND PERFORMANCE
The financial results were impacted by implementation delivery challenges on
complex projects and a slowdown in the consulting segment. Growth in our annuity
streams (software rental and support) helped to alleviate the challenges faced.
Although corrective action was taken at the interim stage (to August 2010),
complex projects required further investment and attention than was anticipated.
Subsequently, loss-making projects were terminated without recognition of
associated revenue.
The Group has taken further corrective action including a redesign of its
implementation approach and integration of business units. This will allow for
operational improvement and cost efficient delivery to clients. Management
structures have been consolidated to ensure focus and further reduce overhead
costs. The challenges faced and corrective actions taken have impacted revenue
and profitability negatively. However, the business fundamentals of the Group
remain sound.
Segmental review
Consulting - Consulting revenue is generated by Ones & Zeros. The Mercantile
project was concluded after a period of two and half years and coincided with a
decline in market conditions for consulting firms. The banking industry
aggressively reduced its consulting complement, which impacted the business
negatively. Our skilled consultants were redeployed in the life insurance
industry via the SDT client base. Ones & Zeros has been integrated with
SilverBridge Software Solutions (Pty) Ltd. SilverBridge has acquired the
remaining 49% from minority shareholders of Ones & Zeros.
Implementation - this segment was negatively impacted by implementation delivery
challenges on complex projects as highlighted at the interim stage. Some of
these projects required further investment with highly skilled resources. After
joint client reviews, loss making projects were terminated - with associated
revenue not being recognised. In addition, resources allocated to these projects
decreased the overall revenue generating capability of the unit. Revenue and
profit reduced as a result. Corrective actions have been taken including a
redesign of our implementation approach. We are pleased to report that the ABSA
implementation project is proceeding well.
Support - Support income is monthly contracted income and is annuity based.
Revenue grew well, assisted by increase in contracted support. However some were
at a lower margin than the rest of the support business. This, together with the
general pressure in the implementation environment affected the support margin
negatively.
Software rental - Software rental is annuity based. It is mainly dependent on
usage, which increases with the number of contracts or policies administered on
the system. It typically grows slowly over time as long as the client continues
using the system. Excluding the R4.9m license fee, software rental grew
moderately owing to slight usage gains. Given the implementation challenges, no
material new software rental clients were added. However existing customers were
maintained and many have been converted to the new Exergy platform, preserving
future annuity income. Corrective actions taken in the implementation area
should enable future growth of software rental.
Research and development - The increase in research and development costs, and
specifically the increase in the capitalisation cost, is a direct result of the
redevelopment of the loans administration system bought from Acczone. R3.5
million has been capitalised during the period on the loan administration system
and R1.6 million in Exergy.
On behalf of the board of directors
Andile Sangqu
Chairman
Jaco Swanepoel
Chief Executive Officer
Pretoria
16 May 2011
CORPORATE INFORMATION
Directors of SilverBridge
Andile Sangqu (Chairman)*,
Jaco Swanepoel(CEO),
Jeremy de Villiers **, Robert Emslie **,
Dinga Madubela *,Tyrrel Murray*,
Sandra Duetsch*, Jaco Maritz,
Sphelele Sangweni***.
(All the directors are South African citizens).
* Non-executive
**Independent non-executive
***Alternate director
REGISTERED OFFICES
First Floor, Castle View North
495 Prieska Street, Erasmuskloof,
Pretoria, 0048
(PO Box 11799, Erasmuskloof, 0048)
COMPANY SECRETARY
Fusion Corporate Secretarial Services (Proprietary) Limited
represented by
Melinda van den Berg
56 Regency Road,
Route 21 Corporate Park,
Irene, Pretoria, Gauteng
(PO Box 68528, Highveld, 0169)
LEGAL ADVISERS
Gildenhuys Lessing Malatji Inc.
(Registration number: 1997/002114/21)
GLMI House
Harlequins Office Park,
164 Totius Street,
Groenkloof
(PO Box 619, Pretoria, 0001)
GROUP AUDITORS
KPMG Inc.
(Registration number: 1999/021543/21)
KPMG Forum,
1226 Schoeman Street,
Hatfield
(PO Box 11265, Hatfield, 0028)
TRANSFER SECRETARIES
Computershare Investor Services (Proprietary) Limited
(Registration number: 2004/003647/07)
70 Marshall Street,
Johannesburg,
(Call centre: 0861 100 634)
(PO Box 61051, Marshalltown, 2107)
DESIGNATED ADVISER
Merchantec (Proprietary) Limited
(Registration number: 2008/027362/07)
Second Floor, North Block
Hyde Park Office Tower,
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