Strong Asia-Pacific performance boosts profits and revenue at Norkom

A STRONG performance from its operations in the Asia-Pacific region helped Norkom Technologies – the Dublin-headquartered specialist international software provider – increase profits and revenue in its latest financial year.

For the 12 months to the end of March, Norkom saw pre-tax profits increase slightly from €4.88 million to just over €4.9m. Operating profit went from €4.5m to just under €4.8m, but basic earnings per share fell from 6.94c to 4.5c.

Overall revenues grew by 17% from a little over €41m to just over €48m.

Norkom specialises in software solutions for the global banking sector, with its products focusing on combating money laundering and fraud. Its operations in the Asia-Pacific region have only been running for two years and in the year just completed that division enjoyed a 76% year-on-year increase in revenue to €7.9m. Particular strong growth was achieved in Australia, with good new business wins also evident in New Zealand, Indonesia and the Pacific Islands.

The company added 16 new clients during the period, including its first sale in the Middle East with the Dubai Islamic Bank.

The value of Norkom’s net assets – at the end of March – totalled €58.2m, up from €50.3m.

“Despite the current turmoil in the banking sector, and the subsequent economic impact, the resilience of our business has shone through. We opened in new markets, launched new products and expanded our footprint across the globe,” commented chief executive Paul Kerley.

Mr Kerley added that Norkom remains in “a very healthy position” and will continue to generate profits and cash. “The many years invested in focusing on our client relationships, fiscal responsibility and building a fantastic team have positioned us to continue growing from strength to strength in the coming years.”

Mr Kerley said that while growth in the current year is likely to slow, within three years a return to revenue growth rates of around 20% should be noticeable.

Similarly, while the company is not looking at making any further acquisitions, the policy still forms part of Norkom’s growth strategy and a return to merger/acquisition activity could be expected within the next two to three years.