JSE-listed fintech group Capital Appreciation has announced its annual results for the year ended 31 March 2022.

It has experienced a strong acceleration in business activity in the past year and a substantial demand for its innovative technology products and solutions. The Group increased gross revenues for the period by 34% to R831-million.

Synthesis Software Technologies and the Responsive Group comprises the Software segment of Capital Appreciation.

The Software division increased revenue by 34% to R297,2-million, given a strong demand for cloud and digital projects and Hardware Security Modules (HSM) sales that increased threefold. EBITDA increased by 22% to R70,1-million.

Synthesis was acquired by Capital Appreciation in 2017. This year’s annual results mark its fifth year of being part of a JSE-listed company and its fifth year of substantial growth.
“Looking back over the past five years, it is pleasing to note that we have delivered strong results during a flux of changes. Regardless of the circumstances, we never waned in our commitment to our customers, employees, partners and investors,” says Michael Shapiro, MD of Synthesis.

“We unrelentingly and passionately pursue leading technology solutions to solve problems because businesses want and deserve to be at the summit of the digital landscape today. It’s this passion that shines through in our results.”

During this period, Synthesis received the award of AWS Consultancy Partner of the Year for Sub-Saharan Africa and achieved the milestone of over 200 AWS certifications. The company saw significant expansion and contracted with new customers in financial services, telecoms, retail, healthcare services and contact centres.

Synthesis laid a solid foundation for international expansion with international revenue up by 33% in Asia Pacific, USA and the UK. Diversified revenue streams were also achieved through a focus on new vertical sectors, including logistics and healthcare.

Halo Dot, the Visa, Mastercard and AMEX tap-on-phone payment technology created by Synthesis furthered this diversification. The technology has generated strong interest from local and international markets, attracting multiple new customers. This innovative solution is becoming universally adopted as a novel method to accept card payments on an Android device without the need for purchasing additional hardware.

Synthesis saw expansion with Capital Appreciation launching Synthesis Labs in Amsterdam to further capitalise on international opportunities.
Synthesis has concluded new contracts with a value of more than R300-million, a large portion of which will be recognised in FY 2023.

The acquisition of the Responsive Group became effective on 1 March 2022 and has already been integrated into the Software division. Responsive is a digital solutions Group that designs and develops digital applications for clients in South Africa, the US, Europe and the UK. The synergies between Synthesis and Responsive will provide clients with a comprehensive digital strategy, design and execution capability from the Group.

“We are excited, motivated and anticipate another positive year as we continue to invest in our people and emerging technologies,” says Shapiro.