SA fintech investment group Capital Appreciation says it expects an increase in earnings for the financial year to end-March, mainly due to a strong performance by its payments division.
In a statement on Friday, the company said its headline earnings per share (HEPS) were expected to rise 24%-26% compared to the previous year.
It said the payments division had “executed well against its growth strategy and attracted new clients, further diversifying its revenue streams”.
The company operates through three main segments: payments and payment infrastructure and services, software and services, and international.
The payments division provides infrastructure, technical support, and technology solutions to established financial institutions, emerging service providers, and corporate clients in sectors such as retail, fuel, hospitality, and healthcare. It also supplies electronic point-of-sale devices, offers device fleet management solutions, and enables merchants to process both banking and non-banking transactions through a single device.
The company's software division, while showing improvement, delivered results below management’s expectations. Both divisions, however, “remain cash-generative with healthy cash conversion from operations”, the company said.
Capital Appreciation appointed new auditors, resulting in adjustments to the company’s prior year’s results, leading to a 2.8% increase in HEPS. The company said the effect on the company’s balance sheet and cash flow was minimal, with further details to be provided in the upcoming annual results.
Founded in 2014 and headquartered in Sandton, Capital Appreciation operates as a financial technology company with a footprint in the Asia Pacific, US, UK, Europe, the rest of Africa, and the Indian Ocean Islands.
The company expects to release its results on June 24.
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