Saturday, November 20, 2010

Softlogic enters financial services

The high-riding Softlogic Group has renamed the flagship financial arm of the Capital Reach Group whose controlling stakes it acquired, as Softlogic Finance PLC.

The acquisition heralds Softlogic's much-anticipated entry into the competitive financial industry. Chairman of Softlogic Ashok Pathirage believes that his conglomerate is ready to serve up a new culture in finance.  "We have just received shareholder approval to rename the decade-old finance company which we acquired, allowing us to stamp our entry into finance.  We are well poised to deliver the next success story on the cutting-edge of finance", Pathirage said.

The Softlogic Group which started as an IT company has catapulted to fame as one of Sri Lanka's most diversified and fastest-growing conglomerates. The involvement of this dynamic retail group brings a powerful dimension to the company that will work in tandem with the parent group ramping up its presence in the consumer lifestyle arena. Softlogic's association with world-renowned brands like Nokia, Dell, Panasonic, Samsung, Xerox, Levi's, Nike and Daihatsu is expected to help Softlogic Finance leverage group strengths as it seeks to introduce its own brand of consumer-friendly financial services. Softlogic has also been credited with infusing new life to the local healthcare industry having management of the Asiri hospitals and the spanking new Central hospital.

A foothold in the financial industry adds a new facet to the group's portfolio and the entry of the group into the financial services sector is seen as an ideal strategic fit in offering the retail and SME customer, both personal and business financial solutions through the Softlogic Finance branch network, as well as, Softlogic stores that will soon expand island-wide.

With the Group having its roots in the IT field, the company will leverage technology to deliver a competitively priced suite of financial products and services to its customers with convenience and superior service being the key elements. The product offering of the company currently covers leasing and hire purchase, fixed deposits and savings accounts, personal finance, business finance and gold loans.

Boasting one of the lowest risk ratios in the industry, with non-performing loans at 1.9%, the company recently reported September half year Profit before tax of Rs 30.5Million with Advances recorded at Rs 2.3 Billion and Total Assets at Rs 2.9 Billion. The company has also received shareholder approval for a rights issue that will boost capital adequacy to 20.5% facilitating the strong business growth that is anticipated. With a strong and experienced team on board to power performance, the start to the second half has been extremely promising enabled by an environment that is expected to deliver brilliant prospects in the months to come.

Softlogic Finance PLC has 8 branches located in provincial towns of the country and will shortly be looking at expanding its network that will include presence in the northern and eastern theaters.

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