Synergy lifts annual profit

Media release
27 May 2005

Synergy lifts annual profit

Software services company, Synergy International Ltd, has announced an increased profit before tax of $1,013,000 for the year to 31 March 2005, up $141,000 on the 2004 result. The company will pay a fully imputed dividend to shareholders of 4.0 cents a share.

The increased profit was achieved on revenue of $32.9 million, a slight increase on the $32.6 million in 2004. The profit after tax was $809,000, almost double the $426,000 made the previous year. The operating cash surplus was $1.5m compared with $1.8m in 2004

Synergy Chairman Philip Shewell said the profit result was extremely pleasing, given the company’s revenue had remained largely static.

“The result comes from continued quality improvement initiatives across the whole business and continued vigilance on overhead costs. Real efficiencies have emerged in the business as a result of internal restructuring and improvements in client and project management,” he said.

Mr Shewell noted that consulting revenue within the New Zealand business was up on the previous year but this had been offset by a predicted drop in non-consulting revenue. The UK business while performing profitability had reduced revenue due to a large, long-term project entering a phase requiring less resources. The Singapore operation also recorded an increase in revenue.

Mr Shewell signalled that Synergy was now in an excellent position to pursue a stronger growth strategy, and the appointment of Jim Donovan as the new CEO would see a more expansionary approach from Synergy as it sought to become a larger player in the market.

The dividend will be paid on 1 July 2005 to all shareholders on the register on 30 May 2005.

ends

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