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CAPITAL APPRECIATION LIMITED - Unaudited interim condensed consolidated financial results for the six months ended 30 September 2021 and dividend

Release Date: 30/11/2021 07:05
Code(s): CTA     PDF:  
Wrap Text
Unaudited interim condensed consolidated financial results for the six months ended 30 September 2021 
and dividend

Capital Appreciation Limited
Incorporated in the Republic of South Africa
Registration number: 2014/253277/06
JSE share code: CTA    ISIN: ZAE000208245
"Capprec" or the "Company"


Operational features
  -  Accelerating digitalisation intensified the demand for Capital Appreciation's products and services
  -  Terminal sales for the current six months exceeded 2021 full-year sales
  -  Android terminals enjoy significant demand
  -  Strong acceleration for the Software division in the second quarter
  -  Growing international income, supported by a new office in Amsterdam
  -  Solid business pipeline across all businesses
  -  Improved operating margins due to scale benefits and operating efficiencies
  -  Strong cash conversion continues, consistent with prior periods
  -  Robust growth in sales resulted in large receivables at period-end, which have since converted into cash
  -  Cash available for reinvestment R589 million (29 November 2021)

Financial features
                                            September     September
                                                 2021          2020    % change
Revenue (R'million)                             439.4         323.7        35.7
Trading profit (R'million)                      147.5          88.1        67.4
EBITDA (R'million)                              138.7          81.6        70.0
Operating profit (R'million)                    119.2          64.5        84.9
EPS (cents)                                      7.44          4.45        67.2
HEPS (cents)                                     7.43          4.45        67.0
Trade and other receivables (R'million)         181.2          92.6        95.7
Interim dividend (cents)                         3.75          2.50        50.0
Net asset value (cents)                         117.0         108.0         8.3

Interim period performance
Capital Appreciation's interim results to
30 September 2021 reflect an acceleration in
commercial activity and strong demand for
the Group's innovative technology products
and turnkey solutions. Capital Appreciation
continued to attract a considerable number
of new customers to its client base of
blue-chip institutions in the banking,
financial services, retail, telecommunications,
and healthcare sectors and benefited
from a strong pipeline of terminal orders,
as well as pleasing growth in terminal
transaction income. Its Software division also
experienced a significant increase in cloud
migration projects and demand for digital
transformation support. Capital Appreciation
remains highly cash generative. Trade and
other receivables doubled in the reporting
period on the back of large terminal sales,
also impacting cash and cash equivalents.
The majority of trade receivables converted
into cash post-period-end and cash balances
at 29 November increased to R589 million
and 48.4 cents per share.

Digital transformation as well as an
acceleration in demand for electronic
payments, cloud services, and related
advances are creating numerous
opportunities for the Group and continue to
support robust growth prospects over the
medium term.

The Board has pleasure in announcing that an interim
dividend of 3.75 cents per ordinary share has been
declared for the six months ended 30 September 2021
(September 2020: 2.50 cents per ordinary share).

We note the following:

  -  Dividends are subject to dividends withholding tax.
  -  The payment date for the dividend is Tuesday, 28 December 2021.
  -  Dividends have been declared out of profits available for distribution.
  -  Local dividends withholding tax is 20%.
  -  The gross dividend amount is 3.75 cents per ordinary share, which is 3.00 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:

Last day of trade cum dividend                                 Tuesday, 21 December 2021
Shares commence trading ex-dividend                          Wednesday, 22 December 2021
Dividend record date                                            Friday, 24 December 2021
Dividend payment date                                          Tuesday, 28 December 2021

Share certificates for ordinary shares may not be
dematerialised or rematerialised between Wednesday,
22 December 2021 and Friday, 24 December 2021,
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 
and on Capital Appreciation's website 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 directors of Capital Appreciation take full responsibility
for the preparation of this report and that the financial
information has been correctly extracted from the
underlying 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.

Signed on behalf of the Board

Michael (Motty) Sacks             Michael Pimstein
Chairman                          Joint Chief Executive Officer
Bradley Sacks                     Alan Salomon
Joint Chief Executive Officer     Chief Financial Officer

Johannesburg, 30 November 2021

Registered office: 
1st Floor, 61 Katherine Street, Sandton, 2196

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#, RT Maqache#, VM Sekese#, CL Valkin#

* Executive, #Non-executive

Company secretary: 
PKF Octagon,

Transfer secretaries: 
Computershare Investor Services Proprietary Limited

Investec Bank Limited     

Ernst & Young Inc.

Date: 30-11-2021 07:05:00
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