Capital Appreciation grows dividend after strong year


Capital Appreciation grows dividend after strong year

Published Date: 2020-06-02 | Source: Stephen Gunnion | Author: Stephen Gunnion

Capital Appreciation grows dividend after strong year

The FinTech business says its business continued to operate throughout the lockdown, buoyed by growing demand for new technologies.

Capital Appreciation (CAPPREC) says all its business units delivered decent growth last year despite the challenging economic environment in SA, with Covid-19 having a limited impact on its results.

The financial technology (FinTech) group has three business segments including Payments & Payment Infrastructure, Software & Services and CTA Enterprise Development Fund, with has a 35% stake in GovChat.

It grew the number of payment terminals in the hands of clients by by 32% to 185,000, while expanding its operational footprint into the retail sector and ten countries outside SA. Growing demand for digital and cloud-based services attracted new blue-chip clients, resulting in its specialised Services division increasing revenue by 42%.

Group revenue rose 15% to R701 million for the year to end-march and earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 29% to R205 million. It reported headline earnings per share of 10.67c, up 28% from last year, and is paying a final dividend of 2.75c per share, taking its total dividend for the year 18% higher to 5c per share. It concluded a share repurchase transaction, reducing the number of shares in issue by almost 16% and said it had R505 million in cash available for reinvestment.

CAPPREC said its group companies had been able to continue operating throughout the lockdown as they were designated as providers of essential services. It had also been working with GovChat to deliver tools and services to help manage and combat the pandemic. Due to Covid-19, it said forecasts and predictions for the period ahead were almost impossible.

Its shares fell 1.3% to 78c yesterday.

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