FY2023 Interim Result Update

Solution Dynamics Limited (SDL or Company) advises that it expects to report first half FY2023 net profit after tax of around $2.5 million. This represents a 25% increase against the prior FY22 interim result of $2.0 million, although the extent of this gain is partly the result of customer timing and partly one-offs.

The Company’s New Zealand operations have produced excellent results in difficult operating circumstances (COVID, postage price increases) due to sales focus on SDL’s digital services offering, resulting in market share gains. SDL’s major international customers have produced strong results although headwinds in the US mortgage market have significantly reduced transactional volumes in what has been an important sector for the Company’s North American operations.

SDL is maintaining its current guidance for full year FY2023 net profit after tax of around $2.5 to $2.8 million. The strong first half result indicates that the full year FY2023 result may be towards the upper end of the guidance range. Along with usual business risks, the global macroeconomic outlook remains a particular concern as it may reduce transactional volumes and cause delays to progressing the Company’s pipeline of new business in the second half of FY2023. Consequently, there may be significant volatility around the guidance range.

SDL expects to report its interim result around 23 February 2023.

For further information please contact:

John McMahon
Chair
+64-(0)21-0914 0236

Patrick Brand
Chief Executive Officer
+1-203-550 0865

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