Ecsponent Limited. JSE: ECS

Ecsponent shares

Background of Ecsponent

  • Listed on the Johannesburg Stock Exchange (JSE), Ecsponent Limited is a specialist financial services group which focuses on capital growth, credit and raising in niche market sectors. The group aims to buy into financial and private equity assets in target markets including South Africa, Botswana, Swaziland and Zambia.

  • The group is split into three key divisions: Financial Services South Africa, Financial Services Africa and Private Equity. Financial Services aims to fund SMMEs and offer investors above average returns through preference share instruments and other investment options.

  • The group targets portfolio acquisitions whereby shares and cash can be used to purchase businesses, mainly in the banking, stock broking and financial advisory industries. The group also has a history of targeting for sale online or technology businesses. Private equity investments include biotechnology, property development, engineering and media intelligence companies characterised by high margins and high barriers to entry.

  • Ecsponent is an ambitious, mid-cap JSE company with a market cap of R167 million. Ecsponent share price has fluctuated on the bourse, reflecting the company’s ambitious strategies.

Ecsponent Shares Growth Driver

  • Ecsponent aims to fuse traditional investment principles with progressive and creative thinking, supporting businesses which value innovation. Investment funding is given to high-tech companies which have a strong track record of growth, high intellectual properties and high barriers to entry, whilst providing sustainable returns and synergies that can be leveraged across the group.

  • From 2011 to 2015, Ecsponent’s headline earnings have shown remarkable growth, rising from R204 000 to more than R22 million, with operating profits of R47 million. After-tax profits for 2015 grew by 281% from the previous year, to R 19.9 million.

  • In the Financial Services space, the retail credit business was repositioned in the business-to-business space, providing credit to niche market SMEs. Provision of credit outside Africa grew exponentially. Ecsponent’s biotech business has not been performing to expectations due to competitor activity, but a more extensive biotech offering is being rolled out, which is expected to substantially improve performance. In December 2015, shareholders were notified of a proposed R 200 million transaction to buy Ecsponent Investment Holdings. If and when it becomes effective, the transaction will give the group immediate access to a targeted niche market in the enterprise lending sector.

  • Meanwhile, the private equity portfolio was bolstered by a 51% acquisition of media intelligence business Return on Innovation, from which Ecsponent expects strong profits. As part of its growth model, the group is also targeting expansion into Mozambique, Kenya, Malawi, Zimbabwe, Tanzania and Uganda.

Ecsponent Investor Tip

  • Ecsponent funds its growth plans by placing small tranches of high-yielding preference shares. Most market analysts describe Ecsponent’s investment model as risky, with no guarantee of generating steady cash flows sufficient to cover interest payments.

  • The live online stocks chart reflects this risk, with Ecsponent share price fluctuating significantly. Ecsponent shares will be a potential buy for investors with adventurous appetites, offering a possibility for both sharp gains and sharp losses.

Ecsponent Major Shareholders

Ecsponent Capital, Vanguard Holdings, Mile Investments 267.

  • Sector

    Financials

  • Industry

    Asset Management

  • Sub industry

    Private Equity

How to buy Ecsponent Group Shares

  • Ecsponent : How to buy Ecsponent Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Ecsponent Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Ecsponent Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Ecsponent Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Ecsponent Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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