Softlogic Finance profits up 54%

June 8, 2012, 7:29 pm

Softlogic Finance PLC, the leasing and finance arm of diversified group Softlogic Holdings, recorded an income of Rs. 1,531 million for the year ended 31st March 2012, which marks an increase of 135% over the previous year’s income of Rs. 651 million. 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, the company announced in a statement.

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."

Softlogic Finance PLC holds a 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 March 31, 2011 more than doubled during the financial year to reach Rs. 10.1 billion as at 31st March 2012.

The 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.