Capital Appreciation’s share price surged 10.9% to R1.22 on the JSE yesterday morning after it forecast “satisfactory results” for the six months to September 30, despite the difficult trading conditions.
The company, which does payment systems, software development and web and mobile digital application solutions, said in a trading statement that operations were impacted by the challenging economic environment and other factors, but operational efficiencies and company resilience were expected to result in headline earnings per share (Heps) increasing by between 103.8% to 107.9% to between 6.44 cents and 6.57c per share.
The GovChat expected credit loss was R56.3 million in the prior period compared to only R9.4m in the current period, which had contributed to the increase in comparable earnings. GovChat is a digital platform that facilitates communication between governments and their people.
Basic earnings per share were expected to increase between 105.1% and 108.9% to between 6.42c and 6.54c per share.
Heps for the six months to September 2022 would be restated given that the expected credit loss raised in the September 2022 results was treated as non-headline earnings, which was subsequently changed in the audited results for the year ended March 31, 2023.
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