Picture: 123RF/EVERYTHINGPOSSIBLE
Picture: 123RF/EVERYTHINGPOSSIBLE

Fintech group Capital Appreciation (Capprec) said that while the Covid-19 pandemic has not left its clients unscathed, growing demand for digital and electronic services helped underpin a double-digit growth in revenue during its half year to end-September. 

The escalating demand for digital, cloud-based and data services benefited the group, Capprec said on Wednesday, adding it is also an advantage that much of its revenue is generated from blue-chip, well-capitalised clients. 

Capprec’s business includes providing 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 some asset managers.

Revenue rose 15% to R323.7m in the group’s six months to end-September, with headline earnings rising 7.8% to R54.2m.

Capprec increased its interim dividend by 11.11% to 2.5c — a R32.7m payout — but warned that its second-half performance may not match the first half.

Significant uncertainty prevails as to the duration and effect of Covid-19, as well as the rate of economic recovery after the pandemic, the group said. Capprec expects clients to adopt a judicious, less-expansionary approach in capital allocation and expenditure.

“The ongoing acceleration in digital transformation, electronic payments and related advances has received further impetus during the pandemic,” joint CEO Bradley Sacks said in a statement.

“Capprec is ideally positioned to benefit from this evolution, with the appropriate skills, experience and track record of innovation to assist our clients to implement and benefit from these technological advancements,” he said.

With Mudiwa Gavaza

gernetzkyk@businesslive.co.za

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