Growing digital appetite increases capital appreciation

Bradley Sacks, Co-CEO of Capital Appreciation.

Driven by the success of its software division, a growing appetite for digital transformation, as well as for cloud services, the fintech group Capital appreciation (Capprec) recorded double-digit revenue growth in the six-month period ended September.

The JSE-listed company Capprec says digital transformation and related services also create many opportunities for the group and continue to support its medium-term growth prospects.

Capprec today announced its half-year results, saying the performance reflected strong demand for its technology products and turnkey solutions.

During the six months, Capprec increased its gross sales for the period by 36% to 439.4 million Rand. The financial technology company’s profit margins also improved, while earnings before interest, taxes, depreciation and amortization rose 70% to R138.7 million.

Overall profit increased 68% to 91.2 million rand, and basic earnings per share, as well as overall earnings per share, increased 67% to 7.44c per share and 7.43c per share, respectively.

Capprec declared an interim dividend of 3.75c, up 50% from the comparative period.

“The digital transformation, along with accelerating demand for electronic payments, cloud services and related advancements, continue to support strong growth prospects for the group over the medium term,” said co-CEO Bradley Sacks.

“With a well-capitalized balance sheet, robust operating cash flows and significant cash resources, the group has the ability and appetite to take advantage of the organic growth opportunities available for each of its business units, as well as for consider acquisition opportunities related to fintech. . “

Sacks notes that Capprec has continued to attract a significant number of new clients to its client base of blue chip institutions in the banking, financial services, retail, telecommunications and healthcare industries.

During the period, he said, Capprec’s payments division benefited from a strong pipeline of terminal orders, as well as positive growth in terminal transaction revenue.

Additionally, Sacks says the software division has seen a significant increase in cloud migration projects and demand for digital transformation assistance.

“New commercial efforts have opened relationships with 19 new customers since the start of the fiscal year, with a significant increase in cloud migration projects. The Amazon Web Services (AWS) partnership continued to grow.

According to the fintech group, Synthesis, the subsidiary of Capprec, also recently passed the milestone of 200 AWS certifications, which it says reflects the company’s deep technical expertise.

He says: “The company has also expanded into the shipping and logistics industry, after winning a tender to build digital and AI systems for a large container shipping group operating from from Singapore. There is massive demand for smart data solutions and Synthesis has attracted several new clients in financial services, telecommunications, retail, healthcare and contact centers.

Going forward, Capprec says it will continue to invest in the future in essential resources to develop and deliver its products, solutions and project pipelines.

During the period under review, the fintech company claims to have increased its workforce by 13%, to 365 staff.

That, Capprec says, includes the integration of additional candidates into its learning and graduate recruiting programs, as well as several key appointments at senior levels.

“Apprenticeship programs now represent 10% of the total workforce and offer real and measurable opportunities to marginalized young South Africans. ”


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