Purple Group takes revenue hit

Investment holding company Purple Group has reported a decline in revenue of 8% to R34 million in the six months to end-February

Investment holding company Purple Group, which was founded and is chaired by Post Office CEO Mark Barnes and is the owner of EasyEquities, two-time winner of the African FinTech Awards, has reported a decline in revenue of 8% to R34 million in the six months to end-February.

 

However, the company’s net loss narrowed to R19,8 million from R48,2 million, which equated to its diluted headline loss per share improving to 1,84c from 5,27c.

 

Barnes remained bullish about the company’s prospects.

“The combination of predictable earnings in GT247.com and the exciting capital growth prospects of EasyEquities will prove to be just the right mix for Purple Group’s shareholders going forward - providing a base for returning to dividend payments whilst enjoying the rating EasyEquities will attract as a FinTech disruptor. Purple has turned the corner and I expect better times ahead for all of us," Barnes said in the results statement.

 

Easy Equities revenue grew from R1,7 million to R7,8 million over the past two years, a compound growth rate of 113% a year and Sanlam’s R100 million investment into the online stockbroker in November last year helped the group increase its cash reserves by R63,6 million since the end of August 2017 to R191 million.

“We remain focused and attentive to ensuring that growth continues, in partnership, both locally and, very soon, abroad too. Our partner strategy is already proving to be very rewarding. We welcome Rise to our stable of partner platforms, our first foray into the institutional market. Independent feedback on the Rise platform capability confirms that we have every chance of disrupting this market too. More exciting partner opportunities are in the pipeline, we will keep you posted,” said CEO Charles Savage (pictured).

GT247.com’s revenue declined 9% to R24,3 million, but its net profit doubled to R2 million from R974 000, with Barnes expecting the group’s core trading operation"to return to the stable earnings we have enjoyed from this operation over the years".

 

Emperor Asset Management’s revenue fell 71% to R2 million and it fell into a net loss of R980 000 from a net profit of R3 million.

 

"Emperor has taken steps to reposition and add to its offering over the last 12 months to cater to a broader audience of investors. In this regard, Emperor has secured client assets of R14m through offering managed portfolios on the Easy Equities platform, alongside other asset managers," Barnes said.