Capital Appreciation bucks the market

South African FinTech company, Capital Appreciation (CTA) announced a 56% increase in revenue for the six months ending 30 September 2018.

CTA is an investment holding company focused on investing in and developing financial technology enterprises, their platforms, solutions, products and applications.

Customers include ABSA, First National Bank, Nedbank and Standard Bank.

The number of point of sale devices owned by customers increased to 103 000, comfortably ahead of the target of 100 000 terminals by March 2019.

The Group now counts among its clients, all the major banking institutions in South Africa, as well as financial services companies.

CTA reported HEPS of 4.23 cents, an increase of 13% and dividends per share of 2.25 cents, an increase of 12.5%.

The Group said that substantial investments were made in operational infrastructure in the current period to support anticipated growth and that investments in the previous period have already translated into significant growth during the current six months.

CEO Bradley Sacks comments: “The interim results once again demonstrate the strategic positioning and relevance of the Group’s products and services, as well as our clients’ recognition of Capital Appreciation as a respected partner.

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Technology’s role as a disruptor and key differentiator in the financial services sector continues to accelerate, creating further opportunity for the Group.


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Notwithstanding the challenging economic environment in South Africa, CTA subsidiaries successfully managed to expand the scope of their business with existing clients and, given their well-established reputations and track record of innovation and quality and efficient service delivery, have once again been able to attract important new blue-chip clients.”

Capital Appreciation had cash resources at 30 September 2018 of R551.5 million, which is available for investment in organic growth within its subsidiaries, as well as acquisitive opportunities.

CTA’s net asset value per share at 30 September 2018 was 95 cents of which 37 cents is represented by cash.

The share closed at 87 cents on 30 November 2018.

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