Johannesburg, 19 Nov 2019
Tuesday, 19 November 2019, Capital Appreciation announced its interim financial results for the six months ended 30 September 2019. The entity operates in two business segments – Payments & Payment Infrastructure (Payments) and Software and Services (Services).
Synthesis comprises the Services segment. It was reported that Synthesis continued its track record of 31% compound earnings growth. Synthesis increased revenue by 54.0% to R95.3 million (September 2018: R61.8 million), EBITDA by 47.8% to R27.2 million (September 2018: R18.4 million), and profit after tax by 31.0% to R17.6 million (September 2018: R13.4 million).
It has been a very positive first half of the year for Synthesis, with notable demand across all four service offerings: RegTech, Digital and Emerging Tech, Cloud and the Synthesis Academy. This is evidenced by the significant growth in revenue and profits for the period. Cloud is continuing to grow in advance of the AWS region coming to South Africa, while the Digital area is benefiting from many of Synthesis’ clients requiring new digital offerings for their customers.
The RegTech area has shown promising growth, attracting several new customers to the mix.
Synthesis further concluded several new partnerships, including VMware, Confluent, Hashicorp and Cloudflare. Synthesis acts as either seller or professional service provider on those technologies that complement its cloud services and are helping to deliver more comprehensive service offerings related to real-time data streaming, cloud infrastructure, cloud security, artificial intelligence and machine learning (AI/ML) and personalisation to customers. Using machine learning, Synthesis has also built a data analysis and data engineering practice that is complementary to its Digital and Cloud areas. Synthesis’s focus on new customer verticals has shown favourable results. The sectors being targeted are retail, media and telecoms, and healthcare.
“I am pleased with the strong six months financial performance and with the significant and continued growth of Synthesis. The team has performed well and must be congratulated all round for living the Synthesis brand of ethos, of innovation, of quality execution and financial performance,” concludes Michael Shapiro, Synthesis Managing Director.
For more information on the innovative work Synthesis has done for its blue-chip clients, contact Kim Furman.
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Synthesis
Synthesis offers cloud consulting, regulatory reporting and emerging technology solutions to banking and financial institutions, retail, media and telecommunications sectors in South Africa and other emerging markets. Synthesis is a true South African success story, with JSE-listed Fintech company, Capital Appreciation Limited, having acquired 100 per cent of the company in 2017. Following the acquisition Synthesis remains an independent operating entity within the Capital Appreciation Group.
Visit www.synthesis.co.za or follow on LinkedIn
Capital Appreciation
Capital Appreciation (CAPPREC) owns, manages, invests in, and promotes established and developing financial technology (“FinTech”) enterprises, their platforms, solutions, products and applications. CAPPREC presently has two divisions: “Payments & Payment Infrastructure” and “Software & Solutions”. The Payments businesses presently innovate, develop, manage and promote payment product and payment infrastructure solutions for established and emerging institutional clients and other organisations that need to receive or make payments. The Software & Solutions business addresses the complex technology needs of financial institutions.