As signalled last month, financial services software provider Finzsoft has made a loss in the vicinity of $750,000, recording a $759,589 after-tax loss for the year to March 31.
In a statement to the NZ Stock Exchange announcing its yearly result, Finzsoft notes that the loss “was a combination of additional operating expenses, the restructure of operation to match capacity and client demand, as well as investing in further development of Sovereign software and the investigation of a new business opportunity”.
Total revenue for the year was $7.915 million, slightly down in last year’s $8.274 million.
According to Finzsoft, “this was in part due to the flow on of the wider market conditions which have resulted in a reluctance on the part of many of our clients to invest in the development of their operating platform.
“Whilst several Finzsoft clients are operating in a restricted capacity, there remains a solid core client base that have been less impacted and continue to prosper and recognise the value of our Sovereign product”.
Finzsoft has continued to invest in Sovereign, the announcement says, and “the company is investigating a potential new business opportunity outside its core suite of products to provide additional value to our clients and to diversify its income stream.
“Whilst still in the early stages of development, the new business has the potential to add value to the group as a whole”.
According to the statement, “directors are of the view that the appropriate steps have been taken to return to operating profitability by addressing the cost structure, ongoing focus on sales of new modules and diversifying the product range.”
A decision has been made not to pay a dividend, in light of the results.