More than half of Ayo Technology Solutions’ pre-tax profits in the six months to February came from interest earned on the funds the Public Investment Corporation (PIC) invested in the company. In December 2017, the PIC controversially invested R4.3bn into Ayo, acquiring a 29% stake in the process. The deal is under scrutiny at the Mpati commission of inquiry into the PIC. Ayo’s investment revenue from bank deposits leapt from R38.2m a year before to R150.2m in the six months to February, according to its interim results published on Monday. That equates to 56% of group profit before tax of R266.7m.

Simon Brown, founder of Just One Lap said most companies "book interest as revenue but typically it would be such a small amount that it would be insignificant in terms of their total revenue” He said Ayo has other businesses, contracts and revenues but a significant portion is coming from the interest earned. “The interest is still a significant part of their profitability.” Some ...

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