Star performer as demand for cloud services grows
CAPITAL Appreciation’s services division, Synthesis, was a star performer in the fintech group’s annual results as demand for its cloud services grew.
For the year to end March, the group reported a 15.4 percent increase in revenue to R701.2 million, while earnings before interest, tax, depreciation and amortisation (Ebitda) rose by 29.1 percent to R204.7m and profit after taxation increased by 20.2 percent to R149.8m.
Its headline earnings inched up by 14.2 percent to R142.3m and headline earnings per share (Heps) grew by 28.1 percent to 10.67 cents a share. Synthesis reported a 24.1 percent surge in earnings for the year to end March.
The services division increased its Ebitda by 24.1 percent to R53.8m, while its revenue surged by 41.5 percent to R195m and profit after tax increased by 12.8 percent to R36.9m.
The group said it had been a highly successful year for Synthesis, with notable demand across all four service offerings. “Cloud is Synthesis’ fastest-growing segment and the business has a strong strategic relationship with Amazon Web Services (AWS), the world’s leading cloud platform provider. AWS launched its Africa region data centre in Cape Town at the end of April 2020,” the group said.
Joint chief executive Bradley Sacks said technology’s role as a disrupting force and a differentiator in the banking and financial services sector continued to accelerate.
“Its impact and effect is visible not only in new digital related service offerings, but also in reducing operating costs and extracting greater efficiencies through automation and shared infrastructure. Each of Capital Appreciation’s subsidiaries has a proven, well established reputation in such technology matters and this positions the company as a trusted partner to our clients to participate in this evolution,” Sacks said.
The group’s client base includes all major banking institutions in South Africa, as well as many niche banks, large financial services institutions, retailers and other corporate enterprises.
Its shares closed 1.27 percent lower at R0.78 on the JSE yesterday.