Last week we released our Annual Report for fiscal year 2022 achieving record revenue and profit for Solution Dynamics. Here are some of the highlights:
- Record net profit after tax, up 26% to $2.56 million
- International revenue grows 30% to 67% of total revenue
- Revenue up 13% to $40.13 million
- Net cash on hand $5.0 million
We are proud of our business performance in FY22
However, it was a difficult year both personally and professionally for many of us.
Despite the challenges, the commitment to deliver strong business results displayed across the global team was truly inspiring.
Your efforts are paying off
The second half of FY2022 saw a refreshed focus on new business activity, especially in New Zealand. This began to have a positive effect late in the financial year, although most of the benefit will begin to flow progressively over FY2023.
New business is our focus and the sales teams have built a strong prospect pipeline in New Zealand and are targeting growth in several key vertical markets internationally.
It won’t be any easier in FY23
The guidance to our investors is to expect similar net profits of around $2.5 million as this past year. We can do better.
Although the headwind from physical communications continues and costs are rising everywhere, we have a robust new business pipeline, we are successfully passing along cost increases through higher prices to our clients and implementing many key productivity initiatives like Print IQ.
Now more than ever, growth for our company is dependent on securing new business and leading with software to manage global print and digital customer communications.
To support and accelerate new business growth, we are investing in additional sales and marketing capabilities, and putting more technical and operations resources in the northern hemisphere.
Nearly 70% of our revenue today is outside of New Zealand and the growth potential is enormous. Globalizing SDL means being more local in the key markets where we operate. Our customers and our employees based in the US and the UK deserve better support and faster response times. This is a key area of investment for FY23.
The board recognize it’s been a difficult year, they very strongly appreciate and thank the efforts of everybody in the SDL family around the globe, and have approved a special profit-sharing bonus payment to all employees.
The payment will be NZ $400 per employee, GBP200 for the UK and USD250 for the US. You can expect the payment in your next pay cycle.
Thank you for making a difference.
I look forward to FY23 and continued progress in transforming SDL. I hope to see many of you in person at our next employee town hall the week of October 27th!
Pat Brand | CEO