Capital Appreciation HY HEPS up 4.4%
Capital Appreciation is seeing strong demand in the technology sector, both from its local and international clients, which firmed up their latest set of numbers in the six months to September. The fintech group reported single digit headline earnings per share growth of just under 5 per cent but revenue improved significantly - up over 20 per cent. Joining CNBC Africa for more is Bradley Sacks, Capital Appreciation Joint CEO.
Tue, 29 Nov 2022 15:58:13 GMT
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AI Generated Summary
- Capital Appreciation reports single-digit headline earnings per share growth of nearly 5% and revenue increase of over 20% for the six months up to September, driven by strong demand in the technology sector.
- The company attributes the disparity between revenue and earnings growth to investments in new products and aggressive international expansion, resulting in a 200% increase in international revenue.
- Despite challenges like load shedding impacting retail activities in South Africa, Capital Appreciation maintains operational efficiency and plans for future growth through organic expansion and potential acquisitions.
Capital Appreciation, a fintech group, has reported a strong demand in the technology sector from both its local and international clients, leading to impressive financial results for the six months up to September. The company achieved single-digit headline earnings per share growth of nearly 5%, while its revenue surged by over 20%. Bradley Sacks, the Joint CEO of Capital Appreciation, spoke to CNBC Africa about the company's performance and future prospects. Sacks attributed the disparity between revenue and earnings growth to investments in new products and aggressive international expansion. The company witnessed a remarkable 200% increase in international revenue due to these initiatives.
The two main divisions of Capital Appreciation are the payments division and the software division. The payments division experienced record sales, with a slight decrease compared to the previous year. The company continues to see a high demand for digital payment services, such as the use of credit cards and debit cards, which bodes well for this division. The introduction of two new products, Halo and DashPayGloss, further enhanced the company's offerings in the payment sector. The software division saw an outstanding 75% revenue growth, driven by international activities and increased demand for services.
Despite facing challenges like load shedding in South Africa, which negatively impacted retail activities, Capital Appreciation has maintained operational efficiency. The company has redundancies in place, including generators, to ensure uninterrupted operations during power outages. Sacks acknowledged the difficulties faced by retailers and emphasized the importance of collective efforts to overcome such challenges.
Looking ahead, Capital Appreciation is poised for growth through organic expansion and potential acquisitions. The company's strong financial position enables it to support its divisions in pursuing new opportunities. Sacks highlighted the favorable market conditions for acquisitions, indicating a keen interest in exploring strategic opportunities. In addition, Capital Appreciation plans to capitalize on international prospects by offering its world-class services to new clients and markets.
In conclusion, Capital Appreciation's success in the technology sector underscores its ability to adapt to evolving market dynamics and capitalize on growth opportunities. With a robust business strategy and a focus on innovation, the company is well-positioned to sustain its growth trajectory and deliver value to its stakeholders.