Strong Capital Appreciation FY25 Results, CTAJ Share Price Pops Toward Record Highs

Quick overview

Capital Appreciation delivered a robust earnings performance for the fiscal year ending March 31, 2025, lifting investor sentiment and pushing shares toward levels last seen over three years ago.

Strong Financial Performance Powers Share Price Rebound

Fintech group Capital Appreciation (JSE: CTAJ) impressed markets with its full-year financial results, reporting revenue growth to R1.25 billion for the 12 months ending March 31, 2025. The group credited its success to solid execution across both its Payments and Software divisions despite a challenging macroeconomic environment.

The strong results helped push the share price significantly higher. After steadily rising from 130 ZAC in early May, CTAJ shares rallied nearly 10% on earnings day, closing at 184 ZAC, just shy of the day’s high of 180 ZAC.

CTAJ Share Price Chart – Heading for 190 ZAC

Technically, the stock has now broken out of a consolidation phase, with the next key resistance level set at 190 ZAC—a threshold not reached since early 2022. A push through that level could open the door to retesting the all-time high of 220 ZAC.

Payments Segment Leads the Charge

The standout performer was Capital Appreciation’s Payments business, which showed remarkable resilience. The segment continued its strong momentum by:

• Renewing long-term contracts
• Attracting new enterprise clients
• Launching new initiatives with existing partners
• Solidifying its position as one of South Africa’s leading providers of payment infrastructure

While the Software division underperformed slightly and contributed less to group earnings, the impact was offset by the strong gains in Payments. Management emphasized that prudent cost control and disciplined strategy execution allowed them to navigate economic headwinds effectively.

Cash Flow, Contracts, and Forward Momentum

Despite a reported decline in cash flow, the company maintained financial discipline. It continues to reinvest strategically in scalable technology projects while maintaining a strong balance sheet.

Capital Appreciation also highlighted a robust project pipeline across both its core business units, suggesting the earnings momentum may continue into FY26. Renewed and extended contracts, particularly in the Payments unit, point to durable recurring revenue and long-term growth potential.

Operational Highlights

Payments division led growth, with:

• Terminal sales up 41.1%
• Transaction-related income rising 18.6%
• Total terminals deployed up 18.8% to 424,000
• Software division improved in H2 FY25, but full-year performance remained below expectations
• The sales pipeline remains strong across both Payments and Software, but conversion timelines are longer than anticipated
• Balance sheet remains healthy, with R402 million in available cash as at 31 March 2025

Financial Summary – FY2025 vs FY2024 (Restated)

• Revenue grew by 7.6%, reaching R1,250.7 million, up from R1,162.0 million.
• Gross profit margin improved by 80 basis points, increasing from 48.3% to 49.1%.
• EBITDA rose 23.3% to R333.9 million, compared to R270.7 million the prior year.
• EBITDA margin expanded by 340 basis points, up from 23.3% to 26.7%.
• Operating profit increased by 22.1% to R285.4 million, versus R233.7 million in FY2024.
• Operating profit margin improved from 20.1% to 22.8%, up 270 basis points.
• Headline earnings surged 25.2%, climbing to R206.9 million, from R165.2 million.
• Basic earnings per share (EPS) rose by 25.8%, reaching 17.58 cents, up from 13.97 cents.
• Headline earnings per share (HEPS) increased by 25.6%, to 17.57 cents, from 13.99 cents.
• Dividend per share was up 20%, at 12.00 cents, versus 10.00 cents in the previous year.
• Cash generated from operations declined by 34.8%, to R207.9 million, from R318.8 million.
• Cash available for reinvestment fell 14.1%, to R402.3 million, down from R468.2 million.

Divisional Breakdown

Payments Division:

• Revenue: R689.2m (+21.5%)
• EBITDA: R297.8m (+25.4%)
• Margin: 43.2% (+136bps)

Software Division:

• Revenue: R549.0m (-7.6%)
• EBITDA: R61.3m (-31.8%)
• Margin: 11.2% (-397bps)

Conclusion: With the latest earnings report validating its operational strategy and demonstrating market leadership in the fintech space, Capital Appreciation appears poised for further upside. If the bullish trend continues, a break above 190 ZAC could trigger a rally toward multi-year highs, making CTAJ a stock to watch closely in the second half of 2025.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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