Araxi (AXX) H2 2024 earnings summary

Executive summary

• Achieved group revenue exceeding R1.1 billion, up 19% year-over-year, with strong growth in both Payments and Software divisions.

• Cash from operations increased 75% year-over-year, supporting a 21% rise in dividends per share.

• Integrated Dariel acquisition and continued to invest in future revenue streams, with R123 million invested in growth initiatives.

• Maintained a healthy, debt-free balance sheet with R467 million cash available for investment.

Financial highlights

• Revenue: R1,182 million (up 19% year-over-year).

• EBITDA: R252.8 million (up 53% year-over-year), margin increased by 480bps to 21.4%.

• Profit after tax: R170.9 million (up 86% year-over-year).

• Headline earnings per share (HEPS): 13.61 cents (up 83% year-over-year); excluding ECL, HEPS up 11%.

• Dividends per share: 10.00 cents (up 21% year-over-year).

• Cash and cash equivalents at year-end: R467.4 million.

Outlook and guidance

• Strong pipelines and significant orders already placed for fiscal 2025.

• Broad range of organic and acquisitive growth opportunities identified.

• Economic climate remains a consideration in planning, but management is confident in delivering on growth strategy.