Purple Group rockets out of the red with 251% jump in its profitability
DURBAN - PURPLE Group’s share price leapt by more than 7 percent on the JSE on Friday after the financial services group returned to profitability in the year to end-August.
The group improved its profitability by a gargantuan 251 percent to report a profit of R14.44 million compared to a loss of R9.54m reported a year earlier.
Later in the day the share closed 5.94 percent at R1.07.
Its revenue increased by 65 percent to R162.7m and headline earnings per share (Heps) improved by 245 percent to 1.54 cents a share compared to a loss of 1.06c reported last year.
Purple said the year 2020 would be remembered by most as the year of Covid-19, and the group was no exception.
“But where for many the pandemic was a disaster, our Covid-19 year will best be remembered as one where the agile way of working, our capacity building in terms of people, systems and products as well as our passion for ensuring everyone can invest, easily, ensured massive growth across all areas of the business,” the group said.
The group’s brands include EasyEquities, GT247.com, Rise and Emperor Asset Management.
EasyEquities revenue increased by 136 percent to R96m and platform assets increased by 141 percent to R21.6 billion.
The group said trading revenue increased substantially and its ambitious growth strategy in EasyEquities had again been evidenced in this year’s result.
“In addition, our renewed focus on Emperor Asset Management, significant time and energy spent with our partners, especially at Rise, DCX, Satrix and Capitec, ensured a better than expected and most pleasing performance,” the group said.
EasyEquities reported profit before tax of R12.4m during the current period and improved from a loss of R13.5m a year earlier.
In GT247.com, trading revenue increased by 16.9 percent to R59.9m and profit before tax increased by 27 percent to R22.5m.
Purple said the Covid-19 pandemic-inspired volatility across the world in the first and second quarters of 2020 led to a massive increase in traders and trading behaviour.
“GT247.com did well because of that surge and has maintained many of the clients who joined in that time. By adding crypto and increasing our research and educational offerings, this business continues to serve a valuable niche in the market.
“With the year ahead being one of ongoing uncertainty, GT247.com clients are spoilt for choice in trading options,” Purple said.