Purple Group yesterday reported that it has turned the corner with pre-tax and adjusted profit surging 205.7% to R51.8 million for the year to ending 31 August, up from a R49m loss previously after revenue increased 45.1% to R400.4m.
The strong performance saw the share price rise 1.82% to R1.12 on the JSE yesterday afternoon, a price that had already risen strongly from 64 cents a year ago.
Group headline earnings per share increased by 186.3% to 1.77 cents compared with a 2.05 cents per share loss in the prior year. Attributable profit came to R24.8m, compared with a R24.9m loss in the prior year.
Easy Group revenue increased by 51.5% to R360.2m. Easy Group operating expenses increased by 10.6% to R266.7m, while its profit after tax increased by 234.9% to R45m compared to a taxed loss of R33.4m previously.
The results generated some commentary on social media, with Yaakov Goldfein (@yaakovgoldfein) saying on “X”: “Was expecting good results but so far in reading through, these are exceptional.”
Currency (@currencynewza) said: “@EasyEquities owner Purple Group is back on form: it’s profitable and customer deposits have hit a record. Now for that sluggish share price…”
Purple Group’s CEO and founder Charles Savage (@CharlesHSavage) said: “Results worth waiting for.”
Active clients increased 10.4% to 991 320 compared to 897 940 in the prior year. Client assets increased 24.8% to R58.2 billion. Registered clients increased by 11% to 2.29 million.
Retail inflows increased by 27.2% to R7.5 billion. Retail revenue increased by 67.2% to R240.6m. Non-activity-based revenue increased by 65.7% to R206.4m.
Savage said Purple Group, owner of EasyEquities, an online investment trading site started in 2014, had spent a decade breaking down barriers, opening doors, and re-imagining what’s possible for all investors.
“In 2024, Purple Group didn't just sustain growth; we unlocked new realms of opportunity, setting records and scaling the impact of our platform,” Savage said during an interview.
“Our vision has always been to make investing easy, accessible, and empowering for everyone. This year, we've seen that vision come to life in ways that reaffirm our mission and deepen our commitment to democratising finance for millions.
“Today, with over R58.2bn in assets, a substantial increase from R46.6bn last year, and a revenue climb of 45.1%, we are seeing the full effect of the trust placed in us by our clients, partners, and investors.”
Savage said that over the 10 years, their annual growth rates had consistently defied expectations.
“Our momentum throughout this year has been nothing short of extraordinary. Reflecting on our half-year results, we set ambitious goals, and I'm thrilled to say we’ve exceeded them,” he said.
“Deposits grew over 25% year-on-year. From February through our August year-end, every month set a new record relative to the same month in previous years. This momentum has continued post-year-end, with August achieving an all-time record deposit level of over R1.3bn,” he said.
In 2024, steps to elevate their offerings included the launch of EasyApp 3.0 and the introduction of EasyAI Baskets.
New products in 2024 included EasyBonds and EasyTrader, both of which had broadened the paths clients could take to build diversified, goal-driven portfolios.
“By providing these products, we enable our clients to engage with a range of asset classes, seamlessly integrated into our platform. ETFs, for instance, now account for over 30% of platform assets, demonstrating the demand for accessible, managed investment options,” Savage said.
Operational efficiency was enhanced through AI integration. AI offered transformative potential across the company’s operations.
Collaborations with industry leaders like Satrix, Capitec, Discovery, Telkom, and Ayoba have broadened the company’s reach, integrating Purple Group's services into larger ecosystems where millions of clients could engage with investment opportunities seamlessly.
Internationally, progress was being made in Kenya and the Philippines, with regulatory processes advancing. These regions represented significant growth opportunities, Savage said.
He was optimistic that the economic backdrop for 2025 was set to support the company’s growth.
“With interest rates beginning to ease and investment sentiment improving locally and globally,” he said.
BUSINESS REPORT