In a recent filing with the Securities and Exchange Commission, Lesaka Technologies Inc. (NASDAQ:LSAK) reported the outcomes of several key proposals submitted to a vote of security holders. The company, which specializes in functions related to depository banking, held its annual meeting on Thursday, where shareholders elected directors, ratified the selection of an independent accounting firm, approved executive compensation, and voted in favor of an Employee Stock Ownership Plan (ESOP).
The election of directors saw all nominees secure their positions with significant majorities, despite a number of withheld votes. Notably, Nonku N. Gobodo received the highest approval with 39,015,769 votes in favor. The selection of KPMG Inc. as the independent registered public accounting firm for the fiscal year ending June 30, 2025, was overwhelmingly ratified by shareholders.
Additionally, the compensation plan for the company's named executive officers was approved on an advisory basis. The proposal received 38,306,907 votes for, 944,958 against, and 43,503 abstentions, along with 7,287,119 broker non-votes, indicating a strong endorsement from the voting shareholders.
A significant development was the approval of the ESOP and the sale of 2,490,000 shares of the company's common stock to the ESOP Trust out of authorized but unissued shares. This proposal garnered 38,359,457 votes for, 932,606 against, and 3,305 abstentions, with 7,287,119 broker non-votes.
In other recent news, Lesaka Technologies Inc. disclosed robust Q1 2025 earnings and strategic growth. The fintech company reported a significant improvement in its financial position, with revenue reaching 2.6 billion rand and EBITDA at 168 million rand. Operating income saw a substantial increase to 30 million rand, up from 4 million rand in the same quarter the previous year, while net revenue showed a notable 16% organic growth. The company also reported a positive fundamental earnings figure of 43 million rand, a turnaround from a loss in Q1 2024.
Lesaka's future outlook includes over 30% year-on-year growth in net revenue and EBITDA for FY 2025, with revenue guidance set at 10 billion to 11 billion rand. However, challenges were noted in the formal small to medium sector, with lower advances but maintained book quality. The company also reported a slight decrease in operating cash flow from the previous quarter.
InvestingPro Insights
Adding to the shareholder meeting outcomes, recent InvestingPro data offers a deeper look into Lesaka Technologies Inc.'s financial position. The company's market capitalization stands at $389.03 million, with a revenue of $573.68 million for the last twelve months as of Q1 2023. This represents a revenue growth of 6.38% over the same period, indicating modest expansion.
However, InvestingPro Tips highlight some challenges. Lesaka Technologies is not currently profitable over the last twelve months and does not pay a dividend to shareholders. These factors may explain the mixed sentiment reflected in the voting patterns at the annual meeting, particularly regarding executive compensation.
The approval of the Employee Stock Ownership Plan by shareholders aligns with the company's efforts to boost employee engagement, despite its current profitability challenges. This move could be seen as a strategic step to align employee interests with company performance, potentially addressing the weak gross profit margins noted in another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide further context to Lesaka Technologies' financial health and future prospects.
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