Promis­ing maiden fig­ures from fin­tech in­vestor

Daily News - - MONEY/NEWS - SANDILE MCHUNU

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

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

The group is headed by its chair­per­son Michael “Motty”Sacks, with joint chief ex­ec­u­tives Michael Pim­stein and Bradley Sacks.

The group then de­clared a maiden div­i­dend of 2 cents a share.In Oc­to­ber, 2015 Cap­i­tal Ap­pre­ci­a­tion was the first spe­cial pur­pose ac­qui­si­tion com­pany (Spac) to list on the main board of the JSE and man­aged to raise R1 bil­lion through a pri­vate place­ment of shares.

In May this year, the group com­pleted the si­mul­ta­ne­ous 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 pres- ently has two di­vi­sions: Pay­ments and Pay­ment In­fra­struc­ture, and Soft­ware and So­lu­tions.

In the re­sults the group re­ported gross rev­enue of R223.4m – up by 462.72% com­pared to last year’s R39.7m, while earn­ings per share (Eps) and head­line earn­ings per share (Heps) came in at 4.02c a share. This re­flected an in­crease of 87% com­pared to last year’s Eps and Heps of 2.15c.

“The per­for­mance sta­tis­tics set out above are con­sis­tent with the re­sults as­sessed through Cap­i­tal Ap­pre­ci­a­tion’s due dili­gence re­view when the vi­able as­set ac­qui­si­tions were con­sid­ered,” the group said.

Earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion (Ebitda) for the pe­riod was R85.6m – up from R37.4m, in­clud­ing in­vest­ment in­come of R19.6m. The group has R463.1m cash on hand and gen­er­ated R60.2m cash dur­ing the pe­riod.

It was also in­volved in a buy­back of 25 mil­lion shares at an av­er­age cost of 75c a share.

The group has a mar­ket cap­i­tal­i­sa­tion of around R1.2bn as of yes­ter­day .

It prides it­self as a com­pany that pro­motes Black Eco­nomic Em­pow­er­ment (BEE). Its ag­gre­gate BEE share­hold­ing was de­ter­mined to be 31.4% on an eco­nomic in­ter­est ba­sis and 39.1% on a vot­ing rights ba­sis.

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