Cassava Smartech on Monday said it remains on innovatively driving growth, consolidating the gains of the cost-cutting measures and further reducing operating costs in FY22.
This comes after it released its long awaited audited financial statements for the year to February 28, 2021 which were delayed by technical accounting matters. At the beginning of this month, trading in shares of Cassava was suspended due to FY21 results release delay. The Listing Rules say ZSE must suspend an issuer who fails to publish accounts for a period of 7 months.
Once an application for suspension has been approved by the Securities and Exchange Commission, it can only be lifted when an issuer has published its audited financial statements, according to ZSE.
Turning to the results, there was growth in the Insurtech contribution from 9% in FY20 to 15% in FY21. This was attributed to the growth of the short-term non-motor insurance business.
The Vaya Technologies business also uplifted its performance contribution from 2% in FY20 to 7% in FY21.
The group’s revenue diversification strategy is paying off, as evidenced by the exponential revenue growth in the Insurtech and the Vaya Technologies business units, according to Cassava chair, Sherree Shereni.
“As part of its revenue growth strategy, the Group will continue its focus on revenue diversification and innovation into the future,” said Shereni.
EcoCash revenue contribution declined from 75% in FY20 to 60% in FY21. Mobile money subscribers declined by 22% to 8.4 million.
“Steward Bank’s contribution remained stable and is expected to continue on the upward trend, on the back of the system upgrade completed in April 2021.”
Digital banking account holders were 20% higher to 1.9 million.
Inflation adjusted revenue for the group fell 26% to ZW$14 billion in FY21 from ZW$19 billion in FY20 due to the impact of regulatory changes and the Covid-19 pandemic. However, he said, this was mitigated by a rigorous cost-cutting drive.
Foreign exchange losses decline by 45%, to close the year at ZW$4.6 billion. Foreign exchange losses mainly relate to USD denominated debenture balances.
As a result, EBITDA margin closed the year at 15%.
Total assets were down 5% to ZW$25.8 billion.
Loss for the year stood at ZW$1.4 billion – Harare