South African FinTech reports strong growth in payment space

FinTech group Capital Appreciation Limited (Capprec) has reported its financial results for six months ended September 2020, showing 15% growth in a period that covered the most severe lockdown restrictions due to the Covid-19 pandemic.

Capprec is a financial technology company with proprietary and licensed platforms, solutions, products and applications targeted at the B2B market.

Its client base includes all major banking institutions in South Africa, as well as many niche banks, large financial services institutions and other financial services companies. The company has also recently diversified into the retail, telecoms and healthcare sectors.

The company said in a trading statement on Wednesday (2 December), that it attracted further blue-chip clients across several lines of business, achieved robust growth in its payment terminal estate, and made strong progress in extending its payments segment into the Android space.

In addition, the escalating demand for Synthesis’ digital and cloud-based services generated rapid growth in consulting income and a strong pipeline, it said.

Synthesis offers specialised software development, consulting and integration services, and technology-based product solutions to banking, financial institutions, retail, and telecommunications enterprises in South Africa and other emerging markets.

It increased revenue by 13.8% to R108.4 million, with services and consultancy fees increasing by more than 20%, due to the increased demand for Cloud and digital projects.

For the interim period, Capprec grew revenue by 15% to R323.7 million and EBITDA by 20.2% to R81.6 million. Headline earnings increased by 7.8% to R54.2 million, and headline earnings per share grew by 29.7% to 4.45 cents per share.

Capprec declared an interim dividend of 2.5 cents per ordinary share.

“The ongoing acceleration in digital transformation, electronic payments, and related advances has received further impetus during the pandemic,” said Bradley Sacks, joint chief executive officer of Capprec.

“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.”

The group said that its payments division currently boasts a strong sales pipeline for the next six months, with clients indicating a pleasing appetite for new payment platforms and Synthesis is experiencing a growing demand for its services.

Read: Huawei to launch its mobile payment service in South Africa

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South African FinTech reports strong growth in payment space