Capital Appreciation records sturdy performance

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Bradley Sacks, joint-CEO of Capprec.
Bradley Sacks, joint-CEO of Capprec.

Fintech group Capital Appreciation recorded a sturdy performance for the year ending March, projecting a strong pipeline going into the next financial year.

Reporting its financial performance for the year today, Capital Appreciation says it experienced strong demand for its products and services, as corporate investment in digitalisation accelerated.

It also benefitted from large terminal orders and terminal transaction income growth, as well as significant increases in cloud-based and digital consulting revenue and third-party software and hardware sales.

In the year, Capital Appreciation’s payments division revenue went up 34%, with terminal sales up 51%, as Android terminals enjoyed significant demand.

It says its terminal estate has grown at a compound annual growth rate of 41% since 2017 and now comprises 277 000 units.

The software division also had a strong showing, with revenue increasing by 34% to R297.2 million. Revenue from the international unit, which was established a year ago, also grew by 33%.

In the period, the company notes, strong demand for cloud and digital projects and hardware security modules sales increased threefold.

“This past year, the group attracted a considerable number of new local and international clients, adding to its formidable client base in the banking, financial, retail, healthcare, telecommunications, and more recently, logistics sectors,” says Capital Appreciation.

In terms of financial metrics in the period, Capital Appreciation’s headline earnings per share increased by 30% to 13.40c and dividends rose by 36% to 7.50c per ordinary share.

Commenting on the full-year performance, Capital Appreciation joint-CEO Bradley Sacks says: “As a growth company, Capital Appreciation continues to invest to maximise the group’s participation in the opportunities available to us.

“At the same time, we remain intent on providing superior value to shareholders. In the five years since Capital Appreciation acquired its first operational companies to become a fully-fledged fintech enterprise, the group has maintained an unbroken dividend record, returning R370 million, or 26.25c per share, to shareholders in the form of dividends.

“The large pipelines in all our businesses are indicative of the strength of a longer-term global digitalisation trend. Capital Appreciation has the skills, experience and track record to capitalise on the demand for these technological advancements, and this will continue to support the positive growth prospects for the group.

“With a well-capitalised balance sheet, robust operating cash flow and significant cash resources, the group has the ability and appetite to take advantage of substantial organic growth opportunities as well as to consider complementary acquisition opportunities.”

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