Lesaka Technologies Inc. (NASDAQ:LSAK), a company specializing in functions related to depository banking, announced the upcoming departure of a board member. Mr. Javed Hamid will resign from the company's board and all related committees effective September 30, 2024. The announcement was made in a recent filing with the Securities and Exchange Commission.
Mr. Hamid informed the board of his intention to step down on June 13, 2024, with the resignation taking effect at the end of September. According to the SEC filing, his decision to leave is not due to any disagreements with Lesaka Technologies regarding its operations, policies, or practices.
The company has not yet named a successor to Mr. Hamid, and it remains unclear how his departure will affect the composition of the board and its committees. Lesaka Technologies, previously known as Net 1 UEPS Technologies Inc., is headquartered in Rosebank, Johannesburg, and is listed on the NASDAQ Global Select Market.
This change comes during a period of transitions for the company, but the filing did not provide further details on the reasons for Mr. Hamid's resignation or the company's plans moving forward. Shareholders and the market are now awaiting further announcements from Lesaka Technologies regarding the impact of this departure and any subsequent appointments to its board.
The information reported is based on the latest 8-K filing by Lesaka Technologies with the SEC and reflects the company's current corporate governance developments.
In other recent news, Lesaka Technologies has reported significant growth in its third quarter of fiscal year 2024, posting a revenue of ZAR 2.6 billion and EBITDA of ZAR 183 million. The company has also successfully reduced its net debt to Group adjusted EBITDA to 2.6x, marking two consecutive quarters of positive fundamental earnings per share.
Lesaka Technologies has also made strides in its expansion plans with the signing of the Adumo transaction. This is set to extend the company's reach to several African countries, including Namibia, Botswana, Zambia, and Kenya, thereby increasing their workforce and enhancing their processing capabilities.
Despite facing economic challenges in Southern Africa, Lesaka Technologies remains hopeful, driven by revenue growth and profitability in both their Merchant and Consumer divisions. The company has also reaffirmed its full-year revenue guidance, expecting to reach the lower end of the ZAR 10.7 billion to ZAR 11.7 billion range.
Group adjusted EBITDA guidance for fiscal year 2024 has been raised to between ZAR 740 million and ZAR 760 million. The Adumo transaction is anticipated to be completed in August, with an estimated EV to EBITDA multiple of 9x. These developments highlight Lesaka Technologies' strategic progress and position the company as a leading fintech contender in the region.
InvestingPro Insights
Amidst the boardroom changes at Lesaka Technologies Inc. (NASDAQ:LSAK), investors may be considering the company's financial health and market performance. According to the latest data from InvestingPro, Lesaka Technologies has a market capitalization of $283.6 million, reflecting its size in the industry.
Despite a challenging profitability outlook, with analysts not expecting the company to be profitable this year and a negative P/E ratio of -11.99, the company has experienced a strong return over the last three months, with a 26.08% price total return. Moreover, the company's price has seen a significant uptick over the last six months, boasting a 40.0% return.
InvestingPro Tips highlight that while Lesaka Technologies has a high shareholder yield and has demonstrated strong recent market performance, it suffers from weak gross profit margins, which currently stand at 21.55%. The company has not been profitable over the last twelve months and does not pay dividends to shareholders.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, which could provide further insights into Lesaka Technologies' financial health and market prospects. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for a comprehensive view of the company's performance metrics and expert evaluations.
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