Wrap Text
Unaudited Interim Financial Results for the six months ended 30 September 2025
Araxi Limited
"Araxi" or "the Company" or "the Group"
(Previously Capital Appreciation Limited)
Incorporated in the Republic of South Africa
Registration number: 2014/253277/06
Share code: AXX ISIN: ZAE000208245
UNAUDITED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
OPERATIONAL FEATURES
- Growing demand for Araxi's products and services
- Excellent performance from the Payments division, Revenue up 23.3% and EBITDA up 33.1%
- Significant terminal orders received in H1'26
- Terminal estate grew by 15.0% to 446 000
- New Software contracts signalling growth in H2'26
- Encouraging pipeline development in both divisions
- Strong balance sheet with R303 million cash available for growth
- Restatements increased prior period HEPS materially (29%) dampening year-on-year growth comparisons
- Normalised EPS and HEPS grew by 59% and 58%, respectively
CURRENT YEAR PERFORMANCE
Araxi delivered a resilient financial performance despite ongoing low business confidence and sluggish economic growth during the reporting period.
Araxi's two divisions attracted new clients and secured long-term contracts, diversified their revenue sources, and increased their market shares
during the period. The revenue mix continued to evolve with new products and services launched across various sectors and regions, creating
further opportunities for the Group going forward.
The Payments division delivered a strong set of financial and operational results for the first half of the financial year, benefiting from robust
terminal sales, substantial growth in terminal license fees and related services and excellent expense management.
The Software Division delivered an acceptable performance in the first half of FY'26. While customers showed a low commitment to new projects and
continued to focus on cost-cutting for most of the period, the sales pipeline and contracted sales strengthened markedly toward the end of
the half-year, signalling a potential return to growth in the second half.
We remain cautiously optimistic that the positive momentum observed in recent months will persist for the remainder of the financial year and beyond.
Both the Payments and Software divisions are well-positioned to take advantage of improved conditions, and we are encouraged by the pipelines that
have developed recently. Araxi's operating companies remain asset-light, generating significant cash flow. The Group maintains a strong and
unencumbered balance sheet with more than R300 million in cash available to fund organic growth, acquisition opportunities, investments,
and further share repurchases. The Group will continue to invest in growth-related initiatives, as appropriate.
FINANCIAL FEATURES
% increase % increase
September /(decrease) September /(decrease)
September 2024 From 2024 From
2025 As reported "as reported" Restated "restated"
Revenue (R'million) 652.9 611.5 6.8 638.0 2.3
EBITDA (R'million) 150.1 113.8 31.9 149.5 0.4
EBITDA margin (%) 23.0 18.6 440bps 23.4 (40)bps
Operating profit (R'million) 122.1 90.7 34.6 125.3 (2.5)
Basic earning
per share (EPS) (cents) 7.81 5.94 31.5 7.66 2.0
Headline earnings
per share (HEPS) (cents) 7.82 5.96 31.2 7.68 1.8
Normalised EPS (cents) 8.95 - - 5.63 59.0
Normalised HEPS (cents) 8.95 - - 5.65 58.0
Interim dividend per ordinary share (cents) 4.5 4.5 - 4.5 -
Cash available for reinvestment at 30 September (R'million) 303.4 326.7 (7.1) 326.9 (7.2)
* See page 2 restatement for further details.
# Normalised net income adjusted for:
(1) up-front recognition of a five-year license fee contractually recognised in July 2025; and
(2) the cost incurred as part of the restructure of the Software division.
DIVIDENDS
The Board has pleasure in announcing that an interim dividend of 4.50 cents per ordinary share has been declared
for the six months ended 30 September 2025 (H1'25: 4.50 cents per ordinary share).
We note the following:
- Dividends are subject to dividend withholding tax.
- Dividends have been declared out of profits available for distribution.
- Local dividends withholding tax is 20%.
- The gross dividend amount is 4.50000 cents per ordinary share, which is 3.60000 cents per ordinary share net of withholding tax.
- Araxi has 1 310 000 000 ordinary shares in issue at the declaration date.
- Araxi's Income Tax Reference Number is 9591281176.
The salient dates relating to the dividend are as follows:
Declaration date Tuesday, 2 December 2025
Last day to trade Monday, 29 December 2025
Shares commence Tuesday, 30 December 2025
trading ex-dividend
Record date Friday, 2 January 2026
Payment date Monday, 5 January 2026
Share certificates for ordinary shares may not be dematerialised or rematerialised between Tuesday, 30 December 2025, and
Friday, 2 January 2026, both days inclusive.
SHORT-FORM NOTICE
The contents of this short-form announcement are the responsibility of the Board of Directors of the Company.
Shareholders are advised that this short-form announcement represents a brief summary of the information
contained in the full announcement, published on https://senspdf.jse.co.za/documents/2025/jse/isse/axxe/HY2026.pdf
and Araxi's website http://www.araxigroup.com.
Any forecast financial information contained in this announcement is the responsibility of the directors and has not been reviewed
or reported on by the external auditors.
The unaudited financial results are based on IFRS Accounting Standards. The normalised results have been derived from these results.
A reconciliation of the difference between normalised and IFRS Accounting Standards results is provided on page 5 of the Unaudited
interim financial results booklet at the link provided above.
Any investment decisions by investors and/or shareholders should be based on a consideration of the full announcement as
a whole and shareholders are encouraged to review the full announcement as directed above.
Signed on behalf of the Board
Michael Pimstein
Executive Chairman
Bradley Sacks
Chief Executive Officer
Sjoerd Douwenga
Chief Financial Officer
Sandton, 2 December 2025
Directors: MR Pimstein* (Executive Chairman), BJ Sacks* (Chief Executive Officer),
S Douwenga* (Chief Financial Officer), MB Shapiro*, B Bulo#, A Dambuza#,
KD Dlamini# (Lead independent director), RT Maqache#, VM Sekese#
*Executive, # Non-Executive
Company secretary: PKF Octagon: PeterKatz@PKFoctagon.com
Transfer secretaries: Computershare Investor Services (Proprietary) Limited
Sponsor: Investec Bank Limited Auditor: Deloitte & Touche
Date: 02-12-2025 07:05:00
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