Our opinion on the current state of CTA

5 בדצמ׳ 2023

Capprec (CTA) is a fintech company offering payments and payment infrastructure as well as software and services. Patrice Motsepe's African Rainbow Capital (ARC) owns a stake. The payments side of the business is done through African Resonance and Dashpay. The software side involves systems development and consulting. The company owns 17,5% of Resonance Australia - a startup business. The company has all the major banks in South Africa as clients. In its results for the six months to 30th September 2023 the company reported revenue up 3% and headline earnings per share (HEPS) up 105,6%. The company's net asset value (NAV) increased 3,3% to 124,5c per share. The company said, "Headline earnings growth benefited from a reduction in the expected credit loss raised for GovChat in the reporting period." The share now trades at a P:E of 16,13 because of the substantial loss provision made. Roughly R700 000 worth of shares change hands each day - which makes this share quite feasible for private investors. The company appears to be well-managed, profitable, and cash-flush - which means that it is beginning to attract institutional interest. Technically, the share has been in an downward trend since January 2022 and we advise waiting for a break up through its downward trendline.