Summarised consolidated financial results and cash dividend declaration for the year ended 31 March 2021
Capital Appreciation Limited
Incorporated in the Republic of South Africa
Registration number: 2014/253277/06
JSE share code: CTA ISIN: ZAE000208245
"Capital Appreciation", "the Group" or the "Company"
Summarised consolidated financial results and cash dividend declaration
for the year ended 31 March 2021
- COVID impact delayed clients' decisions on projects and
new terminal orders
- Terminals in the hands of customers grew to 217 000,
representing 17% growth year-on-year
- Good traction with the introduction of Android terminals
- Strong acceleration in Synthesis' annuity income
- Accelerating digitalisation intensifies demand for the
- Positive growth in business pipeline
- Significant reduction in interest income due to 300 bps
interest rate cuts
2021 2020 % change
Revenue (R'million) 619.5 701.2 (11.7%)
Trading profit (R'million) 186.9(3) 206.1(2) (9.3%)
EBITDA (R'million) 172.9(3) 204.7(2) (15.5%)
EPS (cents) 10.28(3) 11.24(1,2) (8.5%)
HEPS (cents) 10.34(3) 10.67(1,2) (3.1%)
Cash flow from operations (R'million) 200.9 206.1 (2.5%)
Annual dividend (cents) 5.50 5.00 10%
Net asset value (cents) 111.9 109.0 2.6%
Cash available for reinvestment (R'million) 538.3 505.1 6.6%
(1) Includes a R17.7 million advantage in interest income earned in 2020,
due to the repo rate being 300 bps higher during the comparative year
(2) Includes an unrealised R14.6 million mark-to-market foreign exchange gain and
an R8.7 million profit on the disposal of our investment in Resonance Australia
in the 2020 financial year.
(3) Includes an unrealised R1.2 million mark-to-market foreign exchange loss in 2021
Current year performance
Capital Appreciation continued to grow its client base of blue-chip institutions
in the financial,retail, and healthcare sectors. It also gained strong tractionin
the roll-out of its Android platforms and accelerated its annuity income. The generally
adverse economic conditions and the consequential financial ramifications related to
the COVID pandemic delayed investments by our clients and induced a level of caution
in their decision making for the commencement of large-scale projects. COVID-19 also
caused delays in deliveries from our international suppliers. There has been a welcome
recovery in the levels of Group business activity since the beginning of the 2021 calendar
year, including new terminal sales. The escalating demand for digital, cloud-based and data
services is creating numerous opportunities for Synthesis. The Group's geographic diversification
plans are progressing and cash generation remains strong.
The Board has pleasure in announcing that a final dividend of 3.00 cents has been declared
(2020:2.75 cents per ordinary share), bringing the total dividend for the year to 5.50 cents
per share (2020: 5.00 cents).
We note the following:
- Dividends are subject to dividends withholding tax.
- The payment date for the dividend is Monday,
12 July 2021.
- Dividends have been declared out of profits
available for distribution.
- Local dividends withholding tax is 20%.
- Gross dividend amount is 3.00 cents per ordinary
share, which is 2.40 cents per ordinary share net
of withholding tax.
- Capital Appreciation Limited has 1 310 000 000
ordinary shares in issue at the declaration date.
- Capital Appreciation Limited's Income Tax
Reference Number is 9591281176.
The salient dates relating to the dividend are as follows:
Last day of trade cum dividend Tuesday, 6 July 2021
Shares commence trading ex-dividend Wednesday, 7 July 2021
Dividend record date Friday, 9 July 2021
Dividend payment date Monday, 12 July 2021
Share certificates for ordinary shares may not be
dematerialised or rematerialised between Wednesday,
7 July 2021 and Friday, 9 July 2021, both days inclusive.
The contents of this short-form announcement are the responsibility
of the Board of directors of the Company and has not been reviewed
or audited by the Group's auditors. Shareholders are advised that
this short-form announcement represents a brief summary of the
information contained in the full announcement, published on
and on the Group's website www.capitalappreciation.co.za. The full
announcement is available for inspection at the registered office of
the Company during business hours and at no charge. Investors and/or
shareholders may request copies of the full announcement by
contacting the Company Secretary, details of whom are set out below.
Any forecast financial information contained in this announcement
is the responsibility of the directors and has not been reviewed or
reported on by the external auditors.
Ernst & Young Inc., Capital Appreciation Limited's independent
auditors have audited the consolidated financial statements of
the Group, which the summarised consolidated results have been
derived from. The auditor also expressed an unmodified opinion on
the consolidated financial statements. The consolidated financial
statements and auditor's report, including key audit matters, are
available on the Company's website www.capitalappreciation.co.za.
The directors of Capital Appreciation take full responsibility for
the preparation of this report and the financial information has been
correctly extracted from the underlying audited group financial
Any investment decisions by investors and/or shareholders should be
based on a consideration of the full announcement as a whole and
shareholders are encouraged to review the full announcement as
Signed on behalf of the Board
Michael (Motty) Sacks Michael Pimstein
Chairman Joint Chief Executive Officer
Alan Salomon Bradley Sacks
Chief Financial Officer Joint Chief Executive Officer
Johannesburg, 22 June 2021
1st Floor, 61 Katherine Street, Sandton, 2196
MI Sacks# (Chairman), MR Pimstein* (Joint Chief Executive),
BJ Sacks* (Joint Chief Executive), AC Salomon* (Chief Financial Officer),
MB Shapiro*, B Bulo#, KD Dlamini#, JM Kahn#,
EM Kruger#, RT Maqache#, R Morar#, VM Sekese#,CL Valkin#
* Executive, #Non-executive
PKF Octagon, PeterKatz@PKFoctagon.com
Computershare Investor Services (Proprietary) Limited
Investec Bank Limited
Ernst & Young Inc
Date: 22-06-2021 07:05:00
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