Capital Appreciation increases dividend after double-digit profit rise
Software division Synthesis enjoyed a 72% surge in net interim profit, and group revenue was up 56%
Fintech investor Capital Appreciation has posted a 13% rise in net profit to R63.3m in the six months to end-September. Listed three years ago as a special-purpose acquisition vehicle, the company secured full ownership of three companies early in 2017 — African Resonance, Dashpay and Synthesis — which gave it exposure to the fintech sector. African Resonance and Dashpay make up the group’s payments division, whose clients include major banks. Synthesis is a software unit. Group revenue for the period was up 56% to R315.4m and earnings before interest, taxation, depreciation and amortisation (ebitda) rose 24% to R81.4m. Net profit from the payments business rose 32% to R50.7m, while that from the Synthesis surged 72% to R13.4m. Capital Appreciation attributed the surge in profit from Synthesis to organic growth — higher services and consulting fees earned from a wider base of customers, as well as more diversified sales. “Technology's role as a key disruptor and differentiator in th...
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