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Profit slumps for Finzsoft

NZN 30/05/2016 Paul McBeth

Financial service software developer Finzsoft Solutions has posted a 93 per cent slump in profit as it took longer than expected to win opportunities in Asia.

Net profit fell to $204,000 in the year to the end of March, from $2.7 million a year earlier, it said.

In March, it warned profit would be "materially lower" than in 2015, and the company is in the process of switching its balance date to June 30 to align its results with its majority shareholder.

"As noted in our market update, we have seen a delay in contracts and slower-than-expected access to new business opportunities in Asian markets," chief executive Andrew Holliday said.

"Although some markets continue to be challenging, we are proactively managing our cost base to ensure that performance remains in line with management expectations."

Finzsoft posted an 8.5 per cent drop in annual revenue to $17.9m, and while it trimmed spending on its biggest cost - development, servicing and other costs - to $10.3m, sales and marketing expenses more than tripled to $2.5m.

The board didn't declare a dividend, having paid 22.6 cents in the 2015 year.

The shares last traded at $2.25 and have dropped 20 per cent so far this year.

The company said customer CSG Finance NZ extended its licence and support agreements with Finzsoft and it was also in negotiations to become First Credit Union's banking software and technology provider.

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