Capital Appreciation benefits from digital adoption


Capital Appreciation benefits from digital adoption


Published Date: 2021-10-12 | Source: INCE|Community | Author: The Finance Ghost

Capital Appreciation benefits from digital adoption

At the beginning of September, Capital Appreciation gave an investor update at its AGM.

The group's Payments division benefitted from greater adoption of electronic payments over the period of the pandemic. A strong pipeline of device orders materialised, with the company guiding for a solid result in that division in the interim results.

Despite the challenges of chip shortages globally and shipping delays, the group also put forward a bullish narrative for the second half of the financial year.

To drive momentum in the business, the group has invested in technologies around point-of-sale devices. For example, LayUp offers a convenience lay by service offering for merchants and consumers alike.

The group's Synthesis business operates in the software industry and experienced strong demand over the past year, driven by the shift to digitalisation by companies. The GovChat business delivers technology solutions in the public sector, playing a key role in registrations for social grants during lockdown.

After such positive guidance, it's not overly surprising that the trading statement for the six months to September 2021 reflects growth in headline earnings per share (HEPS) of 50% vs. the comparable period last year. Earnings are expected to exceed 6.68 cents per share, which helped send the share price 4.4% higher to R1.19 in yesterday's trade.


@KasiInvestor 1 week ago

Most unloved JSE small cap. I don't know why? It has blue chip companies as customers (Big four banks, Discovery Vitality etc) It's been increasing revenue, earnings and paying dividends. What am I missing here?

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