Cap­i­tal Ap­pre­ci­a­tion’s in­terim af­ter-tax profit up 124%

Cape Argus - - BUSINESS - Sandile Mchunu

JSE-LISTED Cap­i­tal Ap­pre­ci­a­tion pro­duced a good set of maiden re­sults for the six months to the end of Septem­ber, with profit af­ter tax jump­ing 124%, boosted by three ac­qui­si­tions in May.

The in­vest­ment hold­ing com­pany, which fo­cuses on in­vest­ing in and de­vel­op­ing fi­nan­cial tech­nol­ogy (fin­tech) en­ter­prises, re­ported a profit of R60.1 mil­lion dur­ing the pe­riod, up from R26.9m com­pared with last year.

The group’s chair­per­son is Michael “Motty” Sacks and the joint chief ex­ec­u­tives are Michael Pim­stein and Bradley Sacks.

The group de­clared a maiden div­i­dend of 2 cents a share.

In Oc­to­ber 2015, Cap­i­tal Ap­pre­ci­a­tion be­came the first special-pur­pose ac­qui­si­tion com­pany to list on the main board of the JSE and raised R1 bil­lion through a pri­vate place­ment of shares.

In May this year, the group com­pleted the ac­qui­si­tion of 100% of three com­pa­nies: African Res­o­nance, Dash­pay and Syn­the­sis Soft­ware Tech­nolo­gies. It also an­nounced its in­ten­tion to in­vest in Res­o­nance Aus­tralia and ac­quired a 17.45% in­ter­est in the Aus­tralian com­pany.

Cap­i­tal Ap­pre­ci­a­tion has two di­vi­sions: Pay­ments and Pay­ment In­fra­struc­ture, and Soft­ware and So­lu­tions. In the re­sults, the group re­ported gross rev­enue of R223.4m, up 462.72% com­pared with R39.7m last year.

Earn­ings per share (Eps) and head­line earn­ings per share (Heps) came in at 4.02c a share, re­flect­ing an in­crease of 87% com­pared with last year’s Eps and Heps of 2.15c.

The group had a mar­ket cap­i­tal­i­sa­tion of about R1.2bn yes­ter­day.

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