Earnings a third higher at Capital Appreciation
In June, Capprec said it was well positioned to grow its business given the increased uptake of digital payments driven by Covid-19
Fintech group Capital Appreciation (Capprec) expects to report growth in earnings of up to a third for the six months to end-September.
Capprec provides technology that banks and other financial services companies use to add more features to their digital platforms, such as integrating loyalty programmes and the sale of prepaid vouchers. Its blue chip clients include the big four banks as well as Discovery Vitality, TymeBank and a number of asset managers.
On Thursday, the group said headline earnings per share (HEPS) for the reporting period will be between 27.1% and 32.4% higher than the same time last year. That equates to HEPS of between 4.36c and 4.54c, compared to 3.43c previously.
In June, Capprec said it was well positioned to grow its business given the increased uptake of digital payments driven by the Covid-19 crisis.
The investment holding company in which Patrice Motsepe’s African Rainbow Capital (ARC) owns a minority stake, also sells payment terminals such as point-of-sale devices to banks and major retailers. It provides the back-end systems that allow these devices to accept payments.
At the time, joint-CEO Bradley Sacks told Business Day that the coronavirus pandemic had forced businesses and banks to offer contactless payment options and services, which he said was a “good trend for us”.
The company’s interim results are expected at the start of December.
In morning trade, shares in Capprec — up 44% for the year — were 1.89% firmer at R1.08, giving the firm a R1.41bn market cap.
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