Softlogic Finance posts impressive profit growth

Softlogic Finance PLC's new business model has paid rich dividends in the first quarter of the 2015/16 financial year, with the company achieving impressive improvements in a range of key indicators. Based on unaudited figures for the financial quarter ended June 30, 2015, released to the Colombo Stock Exchange (CSE), on a year-on-year (YoY) basis Softlogic Finance recorded a more than 10-fold increase in Profit Before Tax (PBT) and Net Profit (NP), despite the low-interest environment which prevailed in the review period.

The company's PBT for the quarter was Rs. 67.5 million and NP Rs. 55 million. While Interest Income grew by 6.08% to Rs. 877 million, Net Interest Income increased by 29.03% to Rs. 378 million. Total assets too expanded by 22.5% to Rs. 21,598 million thus resulting in Net Assets per Share improving to Rs. 37.94 from Rs. 35.77.

"The performance of Softlogic Finance in the first financial quarter of 2015/16 reinforces the company's high growth trajectory and more importantly endorses the company's prudent strategic shift to Working Capital Loans," Chairman, Softlogic Finance, Ashok Pathirage said.

"Considering the low interest environment which prevailed during the period, the growth achieved is particularly encouraging and commendable," he said."Even more than the results in themselves, we take pride in achieving substantial improvements in an array of diverse financial indicators - which reflect Softlogic Finance's solid fundamentals," CEO, Softlogic Finance Nalin Wijekoon said.

"The quality of growth is most important and the company remains strongly committed to laying the groundwork for long term results - particularly by focusing on further enhancing our human resources and incorporating latest technological innovation," he said.