Auckland-based, NZX-listed customer communications company, Solution Dynamics (NZX: SDL), has reported 24 percent higher revenues and a 26 percent increase in after tax profit for the June 2016 financial year.
Solution Dynamics offers traditional print and mailing services and a suite of software for desktop mail, digital asset management and document creation, management, storage and retrieval. It says growing demand for its digital offerings, from both domestic and international clients, is more than offsetting the decline in mail volumes.
Net profit after tax for FY 2016 was $1.02 million, up from $807,000 a year earlier. Pretax earnings rose 74 percent to $1.44 million. The SDL Services division, which predominantly provides mail house operations to high-volume postal mail users, delivered a 23.5 percent sales lift to $11.8 million. The company said modest growth in the traditional digital print and document handling operation had been boosted by the strong performance of outsourced services.
The Software & Technology division delivered a 26.9 percent increase in sale to $4.5 million. SDL’s financial position improved with cash from operations rising by 39 percent to $1.36 million. As at balance date, the company had net cash of $1.42 million.
Solution Dynamics said it would pay a final dividend of 2.25 cents a share, taking the payout for the full financial year to 5.25 cents a share, up from 1.5 cents a share in the 2015 financial year. Its shares opened at $2.21 on 9 August, before its results were announced, and closed at $2.30. By 11:10 on 10 August they were trading at $2.36.
Solution Dynamics said its print and related document handling capacity had expanded significantly following the installation of a high-speed, continuous-sheet laser printer, in line with its accreditation as a document management solutions partner to Fuji Xerox New Zealand.