Faster growth needed

Finweek English Edition - - MARKETPLACE -

Pur­ple Group, own­ers of Easy Equities and GT247, pub­lished results show­ing a very tough en­vi­ron­ment. The com­pany wrote down its Real Peo­ple hold­ing and this cost it some R43m of a to­tal loss of just over R61m. So even with­out the write-down, the group re­ported a loss for the six months end­ing Fe­bru­ary. GT247 was hit hard as prof­its dropped from over R28m to just over R1m.

But the real story and the fu­ture of Pur­ple is all about Easy Equities, and while the brand saw great client ad­di­tions and rev­enue growth, it still lost just over R15m on rev­enue of R3.4m. The rev­enue was up 116.9% but it needs to be grow­ing much faster, and CEO Charles Sav­age says it needs ex­tra cash, with the the­ory be­ing that around R75m is needed.

The prob­lem is find­ing the cash. A rights is­sue seems out of the ques­tion or the com­pany would have done it al­ready, and I know it has been seek­ing the money for about the last 18 months with no suc­cess. I am not sure what the out­come will be if it does not get the much-needed cash or even if it will be enough. What is very im­por­tant is that your shares at Easy Equities are safe re­gard­less of what hap­pens to the com­pany.

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