Ann: FLLYR: FIN: Finzsoft FY13 Annual Results

• Release Date: 30/05/13 18:24
• Summary: FLLYR: FIN: Finzsoft FY13 Annual Results
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FIN
30/05/2013 16:24
FLLYR

REL: 1624 HRS Finzsoft Solutions Limited

FLLYR: FIN: Finzsoft FY13 Annual Results

30th May 2013

Market Announcement for Public Release by NZX

To : Listed Company Relations New Zealand Exchange Limited

Finzsoft FY13 Annual Results

The Directors of Finzsoft Solutions Limited are pleased to report on the
Group's performance for the twelve months ended 31st March 2013.

Full Year Highlights

There have been a number of significant achievements during the year
including;
- 14% growth in revenue and a 172% growth in profitability.
- Delivery of our next generation Sovereign Business Origination solution.
- 40% of staff productive hours invested into internally sponsored Research
and Development indicating our continued commitment to future growth.
- Recognition of Finzsoft's Sovereign Banking and Finance solution
("Sovereign") as a world-class tier one product through successful
participation in several competitive bid processes for Tier One banks in the
Asean region.

The current year has been a turnaround year for Finzsoft.  The board and
management have concentrated on known revenue opportunities in Australia and
New Zealand and tightly managed costs. At the same time, we believe that
future growth is inextricably linked to sales to Asian banks, with a
particular focus on Malaysia.  We have deliberately invested resources into
Asia, with the anticipation of sales in the next financial year, which in
turn will provide the foundation for future growth.

Strategic Focus

Finzsoft remains committed to its mission to provide innovative,
transformational, scalable products and services.  Sovereign is an enabling
technology that drives behaviour and empowers our customers.  The strengths
of the solution are its security, auditability, stability, flexibility and
scalability.  It's rich functionality dramatically improves effectiveness and
efficiency through automated and paperless processes.  Finzsoft's vision is
to be a leading supplier of scalable banking and finance software solutions
in the APAC and Asean regions.

The FY13 Period

Following a change in leadership and renewed focus on core strategies at the
start of the year, we have seen a growth in revenue, a return to
profitability, the successful delivery of key projects, continued strong
investment in research and development and a growing pipeline of
opportunities.

In comparison to the twelve months ended 31st March 2012 the Group has
reported:
- an increase in revenue of 14% to $8.8m primarily from improved license and
service fees.
- an increase in Net Profit After Tax (NPAT) of 172% to $401k.

In order to remain a market leader in banking software, Finzsoft continues to
invest heavily in research and development of the Sovereign solution.

Principal Activities

Finzsoft is an experienced, mature and proven banking and financial software
vendor.  Sovereign is an integrated, modular product supporting full
lifecycle/end-to-end (origination, core/servicing, arrears management and
collections) processes for retail, corporate and trading banks. It can be
deployed as a comprehensive core solution, or to support specific vertical
businesses such as auto and equipment finance. Sovereign is unique in
offering a proven, scalable full lifecycle product offering seamless vertical
and horizontal integration.

Our solution is a mission critical component of our client's business. As
such, we recognise our role as a strategic business partner and understand
the need to consistently deliver exceptional customer service along with
robust, secure and innovative solutions.

Disruptive Trends in Banking

Vertical full lifecycle channel management, Business Origination (customer
on-boarding) and Customer Collateral and Data Management & Single Customer
View are considered the current and mid term primary disruptive trends in
banking in the APAC and Asean regions (source: IDC Financial Insights).  The
primary strengths of Finzsoft's Sovereign solution address these disruptive
trends directly.

Arising from these disruptive trends, we see strong market demand in Asean
for standalone Hire Purchase, Automotive/Equipment Finance, Mortgage,
Collections, Trade Finance, Wealth Management and Islamic Banking modules.
We are confident of Sovereign's ability to meet this demand with our existing
and new products.

Target Markets

Finzsoft continues to source its revenue from Australia and New Zealand
whilst investing in Asia to further grow and diversify our income streams.
Currently the regional split of our revenue is New Zealand 58% and Australia
42%.

Asia

Finzsoft has chosen to enter the Asean market in response to the scale of the
market opportunity, the demand from the market for innovative, world class
products such as Sovereign and the ability for the prospective clients to
make an investment commensurate with the value to be derived by using the
Sovereign product.

We have established our presence in this region over the last 24 months and
in the sales opportunities that we have pursued we are consistently being
chosen to move through the sale process to the final stage.  We have a number
of well advanced sales opportunities which we are confident will translate
into material levels of revenue and profitability in the near future.

Australia

We have an established strong client list in Australia including Harvey
Norman, Westpac Bank and the Royal Automobile Club of Victoria.  We have a
significant opportunity to develop our offering within these companies and to
also grow our client base within Australia.  This is one of our key
strategies for the coming year.

New Zealand

We have witnessed a consolidation of the finance company market following the
Global Financial Crisis with the remaining financial institutions becoming
stronger and increasing their investment into Sovereign.  During the year we
supported Heartland's consolidation of the various entities onto our core
system and we continue to assist them to meet their banking status
requirements.

Finzsoft retains a dominant market provider in the New Zealand IT finance
sector market and we have aspirations to further consolidate and grow that
position.

Increased Investment in Research and Development

Finzsoft continues to increase its investment in the Sovereign banking and
finance software solution. This will accommodate growth in new markets and
respond to existing client demands for new features and functionality.

Our software architecture and development philosophy is focused on ensuring
that Finzsoft's Sovereign solution remains "best of breed".  We develop and
upgrade our software incorporating global best practise and legislative
central bank requirements, while ensuring we enable our clients to improve
their customers experience and achieve significant cost savings through
innovation and automation.

Over the last two years we have developed our next generation Business
Origination solution, and have made the first sale and installation of this
solution in the current year.  This new Business Origination product has been
consistently well received by existing and prospective clients and we have a
number of well advanced sales opportunities for this product.

In response to our client needs we have developed a Debit Card system during
the year and we continue to invest in online and mobile solutions to keep our
clients at the forefront of these developing technologies.

Staff

Finzsoft has a highly skilled team of professionals who are focussed on
developing "best of breed" solutions, in the area of banking and finance.
Finzsoft's growth will come from leveraging these skills and taking the
Sovereign product internationally.

Capital Structure

In order for the Group to meet its' expansion plans, particularly into Asia,
may require a change in the capital structure. To this end, Directors
continue to examine options including a combination of new equity and debt.
The directors are hopeful of securing the first contract in Asia which may
impact on the Group's future capital structure.

Dividend

The Directors have resolved not to pay a final dividend to shareholders at
this time.

Outlook

The FY14 financial year will see further investment in the following areas:
- Continuing our sales and marketing investment in the Asean and Australasian
regions and converting the current opportunities into long term revenue
streams;
- Continuing to invest both funds and resources into research and
development;
- Continued review and investment in our delivery and service model;

The Directors are confident that the significant investment that the Group
continues to make into developing the product and entering new markets will
provide future returns to shareholders.

For more information on our activities, please refer to our web site
http://www.finzsoft.com

FINZSOFT SOLUTIONS LIMITED
Results for announcement to the market
Reporting Period Full year report 31st March 2013
Previous Reporting Period 12 months to 31st March 2012
 NZD Amount (000s) Percentage change
Revenue from ordinary activities $8,832 14%
Profit (loss) from ordinary activities after tax attributable to shareholders
$401 172%
Net profit (loss) attributable to shareholders. $401 172%

 Gross amount per share Imputed amount per share
Final dividend 0 cents 0 cents
Record date N/A
Dividend payment date N/A

Comments: Refer to the attached for commentary from directors on the results
to 31st March 2013.
The figures for 31st March 2013 are in the process of being audited.

Dividends Paid Date Paid Cents per share (non-imputed)
Interim Dividend for the year ending 31 March 2013 N/A 0.0
Final Dividend for the year ending 31 March 2012 N/A 0.0
  0.0

Dividend Yield
 Current full year Previous corresponding
full year
Dividend Yield* 0% 0%
Tax adjusted Dividend Yield** 0% 0%

The Directors
Finzsoft Solutions Limited
30th May 2013
End CA:00236886 For:FIN    Type:FLLYR      Time:2013-05-30 16:24:18