Capital appreciation boosts dividend after earnings surge

Capital Appreciation Limited (JSE:CTAE) announced a strong financial performance for the year ended 31 March 2025, driven by exceptional results in its Payments division. Revenue rose by 7.6% to ZAR1,250.7 million, while EBITDA increased by 23.3% to ZAR333.9 million. Headline earnings grew by 25.2% to ZAR206.9 million, translating to headline earnings per share (HEPS) of ZAR0.1757. The company declared a final dividend of ZAR0.075 per share, bringing the total dividend for the year to ZAR0.12 per share, a 20% increase compared to the previous year. The Payments division saw revenue climb 21.5% to ZAR689.2 million, with EBITDA increasing 25.4% to ZAR297.8 million. Software division performance was less robust, with revenue declining by 7.6% to ZAR549 million. The company holds a strong cash position of ZAR402.3 million available for reinvestment.