Quietly, the Net1 share price has been easing off the 12-month low of R115 it reached in August 2017. As expected, given the company and circumstances involved, the uptick has not been smooth. In November, the share spiked at R183 before quickly falling back to R140. On Tuesday, it was trading at R138.58. Given the importance of its controversial contract to distribute social grants in SA, and given that this contract is due to be terminated at the end of March, the share price performance looks remarkably sturdy. Management is working hard to develop alternative sources of income and has made significant progress on this front. Just how significant should become apparent with the release of the group’s second-quarter 2018 results in early February. In recent trading periods, strong performances from Cash Paymaster Services, which manages the social grant payments, combined with a relatively strong rand provided a significant contribution to overall group results. Management believe...
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