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Audited Annual Financial Results and Cash Dividend Declaration for the year ended 31 March 2026
Araxi Limited
(Previously Capital Appreciation Limited)
Incorporated in the Republic of South Africa
(Registration number 2014/253277/06)
Share code: AXX ISIN: ZAE000208245
("Araxi" or "the Company" or "the Group")
AUDITED ANNUAL FINANCIAL RESULTS AND CASH DIVIDEND DECLARATION
FOR THE YEAR ENDED 31 MARCH 2026
OPERATIONAL FEATURES
- Full-year results and year-on-year comparison negatively impacted by delayed delivery of a substantial
terminal order and a large, five-year software licence fee in the prior year
- Cash from operations 25% higher at R259.0 million
- Terminals in the hands of customers increased by 5.4% to 447 000 units
- Recurring terminal licence fees up more than 31%
- Software gaining strategic traction with a 77% increase in underlying EBITDA:
– Material reduction in operating expenses, due to rightsizing of the business
– Improved sales momentum and tangible improvement of sales pipeline
– Key new client wins, including multi-year agreements
– Materially improved capacity utilisation
- Encouraging pipeline development in both Payments and Software divisions
- Pay@ acquisition enhances Payments business and opens up exciting growth opportunities for the Group
- Strong balance sheet, well-positioned for growth
- Final dividend of 7.50 cents per share, bringing the total dividend for the year to 12.00 cents per share
CURRENT YEAR PERFORMANCE
Araxi's full-year operational performance was strong and pleasing, while its financial
performance was mixed. The Payments and Software Divisions both exit FY'26 and enter FY'27
on a sound footing.
Overall revenue and profitability were negatively impacted by both national and global economic
headwinds, including a worldwide shortage of microchips that delayed the timeous delivery
of terminals. Recurring revenue in Payments increased significantly with terminal licence fees
up 31%. Software's underlying EBITDA rose by 77%, pointing to a meaningfully more positive trajectory.
Costs were well managed and there was solid execution against the Group's strategic objectives.
FY'26 included strategic actions that position the Group going forward – a rebranding of the Group
to Araxi Limited, the Software restructuring which reset the business on a healthy base, and the
announced acquisition of the Pay@ Group. We are very pleased with how each of these initiatives has
unfolded and the positive outcomes in each case.
Clients have increasingly turned to the Group to leverage its specialist capabilities in alternative
payment solutions, cloud computing, AI, agentic AI, cybersecurity, and intelligent data to deliver
sophisticated digitalisation solutions that enhance clients' competitiveness, efficiency, and customer
experience.
The Pay@ transaction marks a significant milestone in the Group's continued growth and evolution.
The overwhelming shareholder support for this transaction reflects strong confidence in
Araxi's long-term strategy and in the opportunities that lie ahead.
We are encouraged by the recent pipeline developments and the momentum of the Group's
initiatives to diversify revenue streams across new products, sectors, and regions. We remain
cautiously optimistic and enthusiastic that these trends and opportunities will support the Group's
growth trajectory in FY'27.
FINANCIAL FEATURES
Reported Underlying*
% %
FY'26 FY'25 change FY'26 FY'25 change
Revenue (R'million) 1 166.2 1 250.7 (6.8) 1 174.3 1 218.1 (3.6)
EBITDA (R'million) 279.3 333.9 (16.4) 283.2 267.3 5.9
EBITDA margin (%) 24.0* 26.7* (270bps)* 24.1 21.9 220bps
Operating profit (R'million) 226.4 285.4 (20.7) 230.3 218.7 5.3
Basic earnings
per share (EPS) (cents) 14.38 17.58 (18.2) 14.04 12.76 10.0
Headline earnings
per share (HEPS) (cents) 14.37 17.57 (18.2) 14.03 12.75 10.1
Dividend per
ordinary share (cents) 12.00 12.00 – 12.00 12.00 –
Cash available
for reinvestment
at 31 March (R'million) 327.6 402.3 (18.6) 327.6 402.3 (18.6)
* Unaudited adjusted items to reflect management's view of underlying operational performance:
- A once-off R42 million five-year Software licence fee from a major banking institution, in FY'25.
- A once-off c.R10 million restructuring cost incurred in the Software division in H1'26.
- Early transaction costs amounting to R8.8 million incurred as part of the Pay@ transaction.
- Fair value gains/losses on contingent consideration and convertible loans.
- Interest income on finance leases has been included in operating income.
One of "South Africa's Fastest Growing Companies" – News 24
One of "Africa Growth Companies 2026" – Financial Times
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 2026 (FY'25: 7.50 cents per ordinary share), bringing the total
dividend for the year to 12.00 cents per share (FY'25: 12.00 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 7.50000 cents per ordinary share, which is 6.00000 cents per ordinary share
net of withholding tax.
- Araxi has 1 291 960 171 ordinary shares in issue at the declaration date.
- Araxi's Income Tax Reference Number is 9591281176.
The salient dates relating to the dividend are as follows:
Declaration date Tuesday, 9 June 2026
Last day to trade Tuesday, 28 July 2026
Shares commence trading ex-dividend Wednesday, 29 July 2026
Record date Friday, 31 July 2026
Payment date Monday, 3 August 2026
Share certificates for ordinary shares may not be dematerialised or rematerialised between Wednesday,
29 July 2026 and Friday, 31 July 2026, both days inclusive.
SHORT-FORM NOTICE
The contents of this short-form announcement are the responsibility of the Board of Directors of the
Company. This short-form announcement and the results contained in this announcement have been
prepared in compliance with the JSE Limited's Listings Requirements. 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, as well as the annual consolidated financial
statements, available on https://araxigroup.com/investor/reporting and the following JSE Limited ("JSE") cloudlink
https://senspdf.jse.co.za/documents/2026/jse/isse/axxe/FY2026.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, Araxi's independent auditors, have audited the consolidated financial statements of the
Group and have expressed an unmodified opinion on the consolidated financial statements. 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
Araxi's annual results via webcast at 14:00 SAST on Tuesday, 9 June 2026 at the following link:
https://www.corpcam.com/Araxi09June2026
Signed on behalf of the Board
Michael Pimstein Bradley Sacks
Executive Chairman Chief Executive Officer
Sjoerd Douwenga
Chief Financial and Value Enhancement Officer
Sandton
9 June 2026
Directors: MR Pimstein* (Executive Chairman), BJ Sacks* (Chief Executive Officer),
S Douwenga* (Chief Financial and Value Enhancement 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
Date: 09-06-2026 07:05:00
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