Capprec saw net profit jumped to ZAR80.2 million on acquisitions

Capprec saw net profit jumped to ZAR80.2 million on acquisitions

Capprec said its full-year revenue rose Revenue for the year jumped to R80.2 million compared to ZAR33.0 million in the previous year.

Profit for the year was higher at R39.2 million (R22.2 million). Furthermore, headline earnings per share grew to 3.14cps compared to ZAR1.77cps.

The company said it is not given out any dividend for the period

Capprec further explained its rationale for various acquisitionsFintech is a classification used to describe innovative and transformative technologies disrupting traditional banking and financial services. These changes are evident in the payment sector, affecting, inter alia, relationships between financial institutions and their consumer clients, financial institutions and their corporate retailer clients, retailers and their consumer customers and among consumers themselves.

There are also requirements for financial institutions to enhance regulatory compliance while simultaneously reducing their costs of delivery. These are huge market forces, the consequences of which are visible in the economy as a whole. These forces are expected to intensify and the changes they precipitate are expected to accelerate. Traditional financial and banking institutions are rapidly embracing the idea of Fintech recognising that Fintech presents an opportunity to reduce cost, enhance customer experience and drive revenue and that their businesses are otherwise vulnerable as the digital economy changes customer behaviour.

African Resonance and Synthesis are established players in their respective fields and well positioned to continue supporting and expanding their innovative service offerings to their banking and institutional clients. The increasing demands for African Resonance and Synthesis solutions are already evident in the growth of each enterprise over the past year.

Dashpay has an exciting and compelling technology platform and a suite of products and solutions that have broad applicability to financial institutions in South Africa, across the continent and beyond. The Dashpay solutions are still under development but are expected to enable financial institutions to innovate and enjoy a step change in the merchant acquiring services they provide. The solutions make the concept of “universal acquiring”, now globally recognised as critical to having a successful merchant acquiring offering, seamless and cost effective. Universal acquiring (i.e. allowing a single device to be used by multiple parties to offer multiple and differentiated products and services) will drive penetration among retailers, allow financial and banking institutions to offer tailored solutions to their clients and should materially reduce bank customer churn. It is expected that the Dashpay solutions and service offerings will be formally unveiled during the current financial year.

Whilst it may seem longer, it has been only seven weeks since the acquisitions of African Resonance, Dashpay and Synthesis were completed and the management teams have been actively involved in integration and transition matters. We are pleased to note that the underlying trading of each of the businesses is performing well and in line with our expectations.

While the general economy and political climate in South Africa is somewhat erratic and uncertain, the Fintech space nevertheless presents numerous market opportunities for greater penetration and expansion. The CAPPREC Board is cautiously confident about the growth prospects of the Group for the year ahead.