Capital Appreciation is rocking

FinTech company Capital Appreciation reported strong growth for the year through March 2024.

Capital Appreciation released its results for the year ended 31 March 2024 today, which revealed a strong financial performance.

Revenue grew to R1.18 billion, up 19% from the previous year’s R995.1 million. EBITDA skyrocketed by 53% in the period, growing to R252.8 million, with the EBITDA margin reaching 21.4%.

This saw the company’s operating profit grow 12% to R215.8 million, and total comprehensive income increased to R170.58 million.

Earnings per share grew to 13.59 cents – an 84% increase.

The company said its businesses performed well despite weak business confidence. “In a lacklustre economy, the group continued to attract new customers and grow its market share,” it said. 

“Capital Appreciation also evolved its revenue mix with the introduction of new products and services spread across more sectors and regions.  This creates significant growth opportunities for the group going forward.”

The company grew gross revenues by 19% to R1.2 billion and EBITDA by 53% to R252.8 million. 

Their financial results benefited from improved operational performance, higher finance income, a significantly reduced expected credit loss raised for GovChat and the first-time contribution of the Dariel Group, which was acquired in July 2023. 

During the past financial year, Capital Appreciation invested extensively in future growth, spending R123 million on acquisitions, rental assets, intellectual property development, new software solutions, and further funding of its associates. 

It said that as a result, the business units are well-positioned to meet future demand, and the prospects for the year ahead are very promising.

Capital Appreciation describes its divisions as asset-light and highly cash-generative. 

Cash generated from operations this year increased by 75% to R319.7 million, resulting in available cash resources of R467.4 million.

The company said this will be employed to fund organic growth, acquisition opportunities, investments, and further share repurchases.

Capital Appreciation CEO Bradley Sacks said, “The group has a strong balance sheet and large cash resources, supported by healthy operating cash flow. With significant financial strength, we are well-positioned to pursue organic growth opportunities and consider additional complementary acquisitions.” 

“Our divisions’ healthy pipelines and diversified revenue streams present significant growth opportunities.” 

He said he is particularly proud of the company’s unbroken dividend record over the past seven years, having returned R603 million, or 44.5 cents per share, to shareholders in the form of dividends.

The company’s strong results allowed it to maintain its unbroken, year-on-year dividend growth for the seventh consecutive year, declaring a total dividend of 10 cents per share for the year, an increase of 21% from the prior year.