Capitec – 2018 Earnings Analysis

Author: Viceroy Research Published on: May 21, 2018 Published in: Capitec JSE:CPI

It is our belief that Capitec management have continued to mislead investors since our previous correspondence with the company.

End-of-financial-year announcements in 2018 are reflective deteriorating business conditions and corroborate the continuity of several intentionally misleading accounting practices we have reported in the past.

We have again entertained Capitec’s invitation to field questions regarding its business.

An open letter to Capitec’s Audit Committee can be downloaded below:

Viceroy Letter to Audit Committee – PDF Download

In this instance, we are addressing the audit committee with our concerns, as they relate to broader financial reporting transparency and flawed management analysis, corroborating our previous analysis of unsustainable business practices.

Our continued review of Capitec’s practices and financial results leads us to believe management’s delivery of analysis to stakeholders is extremely misleading, and not at all reflective of declining business fundamentals.

This report will follow issues we have raised in previous reports and correspondence with management. You can find all of these reports on our website:

https://viceroyresearch.org/category/capitec-jsecpi/

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