Capitec Bank Holdings Ltd has, for the second year running, been announced as the Sunday Times Top 100 Company of the Year, based on its share performance on the Johannesburg Stock Exchange (JSE) over the past five years. Capitec CEO, Gerrie Fourie was also celebrated as Business Leader of the Year at the 2019 Sunday Times Top 100 Companies Awards gala dinner which was held at The Empire Venue in Parktown.
Author and entrepreneur GG Alcock delivered the keynote address, with Bruce Whitfield as the master of ceremonies.
The Sunday Times Top 100 Companies, futured by BCX, is one of the most prestigious and highly-anticipated events on the South African business calendar, where industry leaders come together to celebrate the JSE-listed companies that have delivered the highest returns for their shareholders – based on an initial investment of R10,000 – during the period 1 September 2014 to the end of August 2019. To qualify, companies are also required to hold a minimum market capitalisation of R5 Billion at 31 August 2019.
Over the five-year period, Capitec Bank Holdings Ltd (JSE: CPI) showed an annual compound growth rate of 40.9%. This means that R10,000 invested in 2014 would have delivered R55,491 in 2019. Capitec has also been the recipient of the Sunday Times Top 100 Company Award on three previous occasions: 2010, 2012, and 2018.
Transaction Capital (JSE: TCP) and Clicks Group Ltd (JSE: CLS) placed second and third respectively. Equites Property Fund Ltd (JSE: EQU) came in fourth position, with Naspers Ltd (JSE: NPN) taking fifth spot. All Sunday Times Top 100 Companies results were verified by Deloitte.
Capitec Bank Holdings Ltd CEO, Gerrie Fourie, was the recipient of the 2019 Business Leader of the Year Award, as decided by the CEO’s of Sunday Times Top 100 Companies from previous years. Fourie joins an elite list of former recipients including Lesetja Kganyago, Pravin Gordhan, Johan van Zyl, Michael Jordaan and Phuthuma Nhleko, amongst others.
“It is the ultimate accolade to be selected by one’s peers for such a prestigious award, and Gerrie Fourie is very deserving. His commitment to the Capitec brand is only surpassed by his determination to accelerate growth in South Africa, in order to stimulate employment opportunities. We’re proud to recognise him for his grit and determination, and the leadership he provides,” says Sunday Times editor, Bongani Siqoko.
The winners of the inaugural BCX Digital Innovation Awards were also announced at the Sunday Times Top 100 Companies Awards event. The BCX Digital Innovation Awards ‘honour South African organisations that have taken up the flag to transform their businesses through technological advancements and digital transformation.’ The winner in the SME category is iiDENTIFii.
Old Mutual Ltd was announced as the overall winner in the Corporate category.
Mercedes-Benz was the exclusive vehicle sponsor, with Rupert & Rothschild as the pouring sponsor for the Awards.
The results of the Sunday Times Top 100 Companies will be published in the newspaper on 10 November 2019.
BCX is changing the way business is done in South Africa. It delivers customer-driven solutions built through disruptive innovation. As a member of the Telkom Group, BCX currently provides technology and infrastructure solutions for most of JSE-listed companies, helping to move the economy forward. To find out more about BCX, visit www.bcx.co.za
The Sunday Times Top 100 Companies Methodology
The Sunday Times Top 100 Companies awards acknowledge those listed companies that have created wealth and value for shareholders.
The methodology for the Sunday Times Top 100 Companies was changed this year to focus on larger enterprises. This year, companies with a minimum market capitalisation of R5bn at 31 August 2019, and a track record of five years trading from 1 September 2014 were included.
Selected companies that met the aforementioned criteria but are no longer listed on the JSE, or the share is suspended at 31 August 2019, were excluded from the analysis.
The executive management of Tiso Blackstar Group SE have also considered certain subjective qualifying criteria, relating to the Top 100 Companies’ perceived compliance with good governance and ethical conduct.
The share performance analysis assumes an initial investment of R10,000 at the closing price on August 30 2014 and held for a period of five years from 1 September 2014 to 31 August 2019, and the companies are ranked based on the compound annual growth rate (“CAGR”) over the five year period.
This analysis assumes that a fraction of a share can be purchased. Corporate actions during the review period were adjusted for as follows:
Ordinary and special dividends: The gross dividend per share is assumed to be reinvested in the company on the dividend payment date at that date’s closing share price.
Scrip dividends: Assumed that the cash option was elected and that the gross dividend is reinvested in the company as described above.
Capitalisation issue: Shares received are held until the end of the review period.
Unbundling: The shares in NewCo received are assumed to be received on the last date to trade and are tracked separately. The compound annual growth rate is calculated based on the basket of shares held at the end of the period as a result of the original R10 000 investment.
Share split/consolidation: Share price data was adjusted for these corporate events. Companies that undertook this corporate action did not declare any form of dividend during the review period and therefore no further adjustment was required.
Rights issue: Assumed that rights are not taken up and lapse, therefore no adjustment made.
The data has been sourced through IRESS and the calculations have been verified by Deloitte.