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Audited Consolidated Financial Results for the year ended 31 March 2025 and Cash Dividend Declaration
Capital Appreciation Limited
Incorporated in the Republic of South Africa
Registration number: 2014/253277/06
JSE share code: CTA ISIN: ZAE000208245
("Capital Appreciation" or the "Group" or "the Company")
AUDITED CONSOLIDATED FINANCIAL RESULTS
FOR THE YEAR ENDED 31 MARCH 2025 AND CASH DIVIDEND DECLARATION
OPERATIONAL FEATURES
- Exceptional performance from the Payments division
- Terminal sales and Payments transaction-related income up 41.1% and 18.6%, respectively
- Terminals in the hands of customers grew by 18.8% to 424 000
- Software's financial performance improved in H2 25 but remains below expectations
- Encouraging pipeline in both divisions; conversion remains protracted
- Strong balance sheet with R402 million in cash available as at 31 March 2025
FINANCIAL FEATURES
March
March 2024 %
2025 Restated* change
Revenue (R'million) 1 250.7 1 162.0 7.6
Gross profit margin (%) 49.1 48.3 80bps
EBITDA (R'million) 333.9 270.7 23.3
EBITDA margin (%) 26.7 23.3 340bps
Operating profit (R'million) 285.4 233.7 22.1
Operating profit margin (%) 22.8 20.1 270bps
Headline earnings (R'million) 206.9 165.2 25.2
Basic earnings per share (EPS) (cents) 17.58 13.97 25.8
Headline earnings per share (HEPS) (cents) 17.57 13.99 25.6
Dividend per ordinary share (cents) 12.00 10.00 20.0
- interim (cents) 4.50 4.25 5.9
- final (cents) 7.50 5.75 30.4
Cash generated from operations (R'million) 207.9 318.8 (34.8)
Cash available for reinvestment at 31 March (R'million) 402.3 468.2 (14.1)
Divisional performance
Payments
- Revenue (R'million) 689.2 567.4 21.5
- EBITDA (R'million) 297.8 237.5 25.4
- EBITDA margin (%) 43.2 41.9 136bps
Software
- Revenue (R'million) 549.0 594.1 (7.6)
- EBITDA (R'million) 61.3 89.9 (31.8)
- EBITDA margin (%) 11.2 15.1 (397)bps
* Refer to 2025 Annual consolidated financial statements Note 3 for details of the restatements.
CURRENT YEAR PERFORMANCE
Capital Appreciation has once again demonstrated resilience in the face of a challenging economic environment. While the business
climate improved moderately after the formation of the Government of National Unity, optimism has waned, leading customers to
aggressively focus on cost management and conservatively approach capital expenditure.
The Group continued to grow revenue andmanage expenses effectively. Both the Payments and Software divisions have attracted
new clients, initiated new projects with existing clients, and renewed long-term contracts. The Payments division has strengthened
its position as a leading operator of payment infrastructure in South Africa by consistently executing its growth initiatives
successfully. The Software division's financial performance was hindered by bench overcapacity; however, remediation plans are
starting to take effect, improving cost management, efficiency and financial performance.
The Group continued to invest in growth-related initiatives, including leased terminals in Payments and product development
in Software. This diversification and organic expansion create significant opportunities for future growth.
PROSPECTS
Capital Appreciation's businesses are well-positioned, and the prospects are very encouraging. With the pace of technological advances
and the digital transformation needs evident throughout the economy, we anticipate that the current prospective pipeline will transform
positively as business confidence and economic activity gather momentum. While we anticipate low economic growth to persist for the 2026
financial year, several initiatives are underway with the potential to deliver exceptional performance.
DIVIDENDS
The Board has pleasure in announcing that a final dividend of 7.50 cents per ordinary share has been declared for the year ended
31 March 2025 (2024: 5.75 cents per ordinary share), bringing the total dividend for the year to 12.00 cents per ordinary share
(2024: 10.00 cents per ordinary share).
We note the following:
- Dividends are subject to dividend withholding tax.
- Dividends have been declared out of profits available for distribution.
- Local dividends withholding tax is 20%.
- The gross dividend amount is 7.50 cents per ordinary share, which is 6.00 cents per ordinary share net of withholding tax.
- Capital Appreciation has 1 310 000 000 ordinary shares in issue at the declaration date.
- Capital Appreciation's Income Tax Reference Number is 9591281176.
The salient dates relating to the dividend are as follows:
Declaration date Tuesday, 24 June 2025
Last day to trade Tuesday, 8 July 2025
Shares commence trading ex-dividend Wednesday, 9 July 2025
Record date Friday, 11 July 2025
Payment date Monday, 14 July 2025
Share certificates for ordinary shares may not be dematerialised or rematerialised between Wednesday, 9 July 2025 and
Friday, 11 July 2025, both days inclusive.
SHORT-FORM NOTICE
The contents of this short-form announcement are the responsibility of the Board of Directors of the Company. It is only a summary
of the information contained in the annual consolidated financial statements. Any investment decisions by shareholders should be
based on consideration of the financial results booklet published on https://capitalappreciation.co.za/investor/reporting, as well
as the annual consolidated financial statements available on https://capitalappreciation.co.za/investor/reporting and the following
JSE Limited ("JSE") cloudlink https://senspdf.jse.co.za/documents/2025/jse/isse/ctae/FY2025.pdf.
Any forecast financial information contained in this announcement is the responsibility of the directors and has not been audited
or reported on by the external auditors.
Deloitte & Touche, Capital Appreciation's independent auditors have audited the consolidated financial statements of the Group and have
expressed an unmodified opinion on the consolidated financial statements, with an emphasis of matter related to the retrospective
correction of material prior period errors. The information in this short-form results announcement has been extracted from the audited
consolidated financial statements published on SENS, but the short- form results announcement itself was not audited.
RESULTS WEBCAST AND PRESENTATION
Shareholders and other interested parties are invited to join management in discussing Capital Appreciation's annual results via webcast
at 11:00 SAST on Wednesday, 24 June 2025, at the following link: https://www.corpcam.com/CA24062025
Signed on behalf of the Board
Michael Pinstein
Executive Chairman
Bradley Sacks
Chief Executive Officer
Sjoerd Douwenga
Chief Financial Officer
Sandton, 23 June 2025
Directors:
MR Pimstein* (Executive Chairman),
BJ Sacks* (Chief Executive Officer),
S Douwenga* (Chief Financial Officer),
MB Shapiro*,
B Bulo#,
A Dambuza#,
KD Dlamini# (Lead independent director),
RT Maqache#,
VM Sekese#
*Executive, # Non-Executive
Company secretary:
PKF Octagon: PeterKatz@PKFoctagon.com
Transfer secretaries:
Computershare Investor Services (Proprietary) Limited
Sponsor:
Investec Bank Limited
Auditor:
Deloitte & Touche
Announcement date:
24 June 2025
Date: 24-06-2025 07:05:00
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