Wrap Text
Reviewed provisional condensed group financial results for the year ended 31 March2020 and cash dividend declaration
Capital Appreciation Limited
Incorporated in the Republic of South Africa
"CAPPREC" or "the Company"
Registration number: 2014/253277/06
Registered office: 1st Floor, 61 Katherine Street, Sandton, 2196
JSE share code: CTA
ISIN: ZAE000208245
Reviewed provisional condensed group financial results
For the year ended 31 March 2020 and cash dividend declaration
Final features
- Revenue R701.2 million up 15.4%
- EBITDA R204.7 million up 29.1%
- Trading profit R206.1 million up 19.0%
- Headline earnings R142.3 million up 14.2%
- EPS 11.24 cents up 34.9%
- HEPS 10.67 cents up 28.1%
- Cash generation of R206 million
- Cash conversion rate 100% of trading profit
- Net asset value per share of 109 cents up 14.4%
- Final dividend per share of 2.75 cents bringing total dividend per share
for the year to 5.00 cents an increase of 17.6%
- R505 million cash available for reinvestment
Operational highlights
- Growth continues across all business units
- Synthesis' excellent performance continues with expansion
into new verticals and geographies
- Synthesis' AWS Advanced Consulting partner status
expanded to include Financial Services and DevOps
specialities, Well Architected Frameworks and SaaS Partner
- Continued market share gains in payment infrastructure
solutions
- Payment terminals in the hands of clients, up 32.1%
- Expanded payment processing solutions introduced
- CAPPREC's new associate, GovChat, assists government with
COVID-19 Social Relief from Distress (SRD) grants
Current year performance
CAPPREC is proud of the operating performance of
each of the Group's business units. The performance is
particularly pleasing given the challenging economic
environment in South Africa. The COVID-19 pandemic has
had limited impact on the Group's financial results in this
reporting period.
The Company was able to increase its clients' aggregate
payment terminal estate by 32.1% to 185 000 during the
period and concluded additional strategic relationships
for transaction processing. CAPPREC has also expanded
its operational footprint into the retail sector and into ten
countries beyond South Africa. The escalating demand for
digital and cloud-based services, attracted new blue-chip
clients, resulting in the specialised Services division increasing
its revenue by 41.6%. To date, the partnership with GovChat
has enabled more than 1.6 million individuals to apply for an
SRD grant electronically.
CAPPREC successfully concluded a share repurchase
transaction, advantageously reducing the number of
shares in issue by 15.8% to 1 310 000 000.
Dividends
The Board has pleasure in announcing that a final dividend of
2.75 cents per ordinary share has been declared for the year
ended 31 March 2020. The total dividend for the year ended
31 March 2020 amounts to 5.00 cents per share (2019: 4.25 cents
per share).
We note the following:
- Dividends are subject to dividends withholding tax.
- The payment date for the dividend is Monday, 20 July 2020.
- Dividends have been declared out of profits available for
distribution.
- Local dividends withholding tax is 20%.
- Gross dividend amount is 2.75 cents per ordinary share,
which is 2.20 cents net of withholding tax.
- CAPPREC has 1 310 000 000 ordinary shares in issue at the
declaration date.
- CAPPREC's Income Tax Reference Number is 9591281176.
The salient dates relating to the dividend are as follows:
Last day of trade cum dividend Tuesday, 14 July 2020
Shares commence trading ex-dividend Wednesday, 15 July 2020
Dividend record date Friday, 17 July 2020
Dividend payment date Monday, 20 July 2020
Share certificates for ordinary shares may not be dematerialised
or rematerialised between Wednesday, 15 July 2020 and Friday,
17 July 2020, both days inclusive.
Short-form notice
The contents of this short-form announcement are the
responsibility of the Board of Directors of the Company.
Shareholders are advised that this short-form announcement
represents a brief summary of the information contained in
the full announcement, published on
https://senspdf.jse.co.za/documents/2020/jse/isse/ctae/FY2020.pdf
and on CAPPREC's website www.capitalappreciation.co.za.
The full announcement is available for inspection at the
registered office of the company during business hours and at
no charge. Investors and/or shareholders may request copies of
the full announcement by contacting the Company Secretary,
details of whom are set out below.
Any forecast financial information contained in this
announcement is the responsibility of the directors and has not
been reviewed or reported on by the external auditors.
The independent auditor's report by Ernst & Young Inc. does not
report on all of the information contained in this announcement
of the financial results.
The directors of CAPPREC take full responsibility for the
preparation of this provisional report and the financial
information has been correctly extracted from the underlying
reviewed group financial statements.
Any investment decisions by investors and/or shareholders
should be based on a consideration of the full announcement
as a whole and shareholders are encouraged to review the full
announcement as directed above.
For and on behalf of the Board:
Michael (Motty) Sacks Michael Pimstein
Chairman Joint Chief Executive Officer
Alan Salomon Bradley Sacks
Chief Financial Officer Joint Chief Executive Officer
Johannesburg
1 June 2020
Directors: MI Sacks# (Chairman), MR Pimstein* (Joint Chief Executive), BJ Sacks* (Joint Chief Executive),
AC Salomon* (Chief Financial Officer), MB Shapiro*, B Bulo#, KD Dlamini#, JM Kahn#, EM Kruger#, R Morar#.
VM Sekese#, CL Valkin#
* Executive, #Non-executive
Company secretary: PKF Octagon, PeterKatz@PKFoctagon.com
Transfer secretaries: Computershare Investor Services (Proprietary) Limited
Sponsor: Investec Bank Limited
Auditor: Ernst & Young Inc
Date: 01-06-2020 07:05:00
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