Softlogic Finance starts year with impressive growth in profits

• Records significant improvements in many key financial indicators in 1Q 2015/16

Softlogic Finance Chairman 

Ashok Pathirage

Softlogic Finance PLC’s new business model has paid rich dividends in the first quarter of the 2015/16 financial year, with the company achieving impressive improvements in a range of key indicators. 

Based on unaudited figures for the financial quarter ended 30 June 2015, released to the Colombo Stock Exchange (CSE), on a year-on-year (YoY) basis Softlogic Finance recorded a more than 10-fold increase in both Profit Before Tax (PBT) and Net Profit (NP), despite the low-interest environment which prevailed in the review period. 

The company’s PBT for the quarter was Rs. 67.5 million and NP Rs. 55 million. While Interest Income grew by 6.08% to Rs. 877 million, Net Interest Income increased by 29.03% to Rs. 378 million. Total assets too expanded by 22.5% to Rs. 21,598 million thus resulting in Net Assets per Share improving to Rs. 37.94 from Rs. 35.77. 

Basic Earnings per Share also witnessed a favourable upturn to Rs. 1.08. Rs. 76.2 million was paid out by the company as dividends for the financial year 2014/15 within the three-month review period. The impairment for loans and receivables for the period stood at Rs. 109.2 million, compared to the Rs. 90.5 million for the same period (first quarter) of 2014/15.       

“The performance of Softlogic Finance in the first financial quarter of 2015/16 reinforces the company’s high growth trajectory and more importantly endorses the company’s prudent strategic shift to working capital loans,” Softlogic Finance PLC Chairman, Ashok Pathirage said. “Considering the low interest environment which prevailed during the period, the growth achieved is particularly encouraging and commendable.”

“Even more than the results in themselves, we take pride in achieving substantial improvements in an array of diverse financial indicators – which reflect Softlogic Finance’s solid fundamentals,” Softlogic Finance PLC CEO Nalin Wijekoon said. “The quality of growth is most important and the company remains strongly committed to laying the groundwork for long term results – particularly by focusing on further enhancing our human resources and incorporating latest technological innovation.”

Reflecting Softlogic Finance’s emphasis on providing avenues for its staff to further develop their skills, in the first quarter of 2015/16 the company incurred a 34.6% increase in ‘personnel costs’ on a YoY basis.  

Softlogic Finance envisages expanding its network by 15 branches within this year. The company intends to upgrade some of its gold loan centres to fully-fledged branches. Parallel to the expansion of physical infrastructure, Softlogic Finance plans to complete the implementation of the state-of-the-art Skybank IT Solution along with the industry’s best IT practices.

Softlogic Finance PLC is part of the Softlogic Group that has interests in Healthcare, Retail, Financial Services, ICT, Leisure, Automobiles and Restaurants. The Company is a Registered Finance Company under Finance Business Act No 42 of 2011, as well as being a Specialised Leasing Company, licensed by the Central Bank of Sri Lanka under the Finance Leasing Act No. 56 of 2000.