Ann: FORECAST: FIN: Market Update

• Release Date: 31/03/16 16:14
• Summary: FORECAST: FIN: Market Update
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					FIN
31/03/2016 16:14
FORECAST
PRICE SENSITIVE
REL: 1614 HRS Finzsoft Solutions Limited

FORECAST: FIN: Market Update

31 March 2016

Market Release

Finzsoft Limited (NZX:FIN)  MARKET UPDATE

As Finzsoft Limited (NZX:FIN) has previously advised the market, the
company's financial year-end date has changed from 31 March to 30 June, to
align with the balance date of Silverlake Axis Group (SAG), which became the
majority shareholder in Finzsoft in 2015.

As a result of this balance date change, the company agreed with NZX to
provide the12 month results to 31 March 2016, in an interim financial
statement format.  It is expected that these will be provided to NZX for
market release by the end of May 2016.

The Directors at this time wish to advise that the financial results to 31
March 2016 are expected to be below those for the same period in the previous
year.  Net profit after tax to 31 March 2016 is expected to be materially
lower than the $2.7m in the same period last year.

Managing Director, Andrew Holliday said the decline is due to a number of
contributing contractual and market factors. These factors include contracts
that have been delayed, longer than expected timeframes to access the new
business opportunities in the Asian markets, increased investment in
subsidiary Sush Mobile.  Market factors include the changing nature of
customer demand and spending patterns with an increased proportion of
customer budgets being applied away from core enterprise technologies to
disruptive digital ecosystems.

"The Board and management are proactively managing the company's cost base as
a result of these factors."

However, the company confirmed it has recently signed arrangement with New
Zealand's largest credit Union, First Credit Union, which has selected
Finzsoft as its preferred partner to provide the banking software and
technology to run its operations and service its more than 62,000 members
around New Zealand.  See full press release here.

Managing Director, Andrew Holliday said Finzsoft is proud to expand its
partnership with the Credit Union industry in New Zealand.   This is a great
reflection on Finzsoft's ability to meet growing and changing customer needs
over the long term.
"First Credit Union will be a strategic customer for Finzsoft because of its
size and scale.  Finzsoft has a strong history of working with New Zealand's
credit unions and building societies", said Holliday.

"While we are not tracking in line with our expectations for the period to 31
March 2016, we would expect the company to produce a profitable outcome for
the 15 month period ended 30 June 2016.

Brent Impey
Chairman

Andrew Holliday
Chief Executive Officer
End CA:00280121 For:FIN    Type:FORECAST   Time:2016-03-31 16:14:39