Purple Group CEO Charles Savage foresees a bright future after transformative interims
Purple Capital's interim results showcase a remarkable turnaround, signalling a shift from startup to long-term player, as CEO Charles Savage explains. Highlighting the scalability of their business, Savage attributes the transformative results to strategic decisions and customer maturation. He emphasizes sustained profitability and resilience, projecting continued positive outcomes. While international expansion remains on the horizon, the focus remains on consolidating their local presence. With a projected annual growth rate of 25%, driven by market forces and customer behaviour, Savage anticipates sustained success. Reflecting on his journey, Savage emphasizes becoming more data-focused and customer-centric, ensuring future growth and confidently navigating challenges. He spoke to BizNews editor Alec Hogg.
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Edited transcript of the interview
Alec Hogg (00:13.678): Well, Purple Capital's interim results, as the 70% owner of Easy Equities, are superb. Let's dive into that shortly. There's been a big turnaround in the bottom line, starkly contrasting what shareholders experienced six months ago. Purple Group CEO Charles Savage joins us.
Alec Hogg (00:44.718): Charles, I admire the CEO letters you write personally. A lady named Rittenhouse at Warren Buffett's conference mentioned in her book that CEOs who write their letters are more trustworthy. Jannie Mouton was another CEO who excelled at this. In your recent letter, you spoke about how this year has been defining and the financial results have been transformative. Could you elaborate on what makes this year special?
Charles (01:50.825): Indeed, turning ten marks a significant milestone. It's been challenging as startups often struggle past the first decade. This period symbolizes a coming of age for our business. Turning 50 last year also adds a reflective perspective on the next decade. These results are not just about financial success but signify a shift from startup to long-term player.
Alec Hogg (03:36.142): These interim results are transformative indeed. Last year, expenses rose 32%, and revenue was flat. Now, expenses are flat, and revenue has jumped by 29%. This highlights the scalability of your business and the impact of strategic decisions. Could you comment on this turnaround?
Charles (04:23.625): Absolutely, Alec. Our core value drivers outside the income statement have consistently improved, showcasing our growth trajectory. While the income statement took time to reflect this, our strategic decisions and customer maturation have led to this positive shift. We've weathered various economic cycles, and I believe these results mark the beginning of sustained profitability.
Charles (06:47.785): We've navigated challenges without external tailwinds, demonstrating the resilience of our business model. These results are not a one-time success but a preview of sustained growth. Looking ahead, I foresee continued positive outcomes.
Alec Hogg (07:44.174): Shifting focus, there's been less mention of international markets like the Philippines in recent discussions. Could you share insights into this shift and how it aligns with your long-term vision?
Charles (08:14.761): My optimism about expanding internationally sometimes overshadows our primary focus, which remains on consolidating our local presence. Our growth potential in South Africa is substantial, and we aim to replicate this success elsewhere, like in the Philippines, albeit at a slower pace than anticipated.
Charles (10:43.305): Our long-term growth projections are grounded in historical data and customer behaviour analysis. Over the next decade, we anticipate a compounded annual growth rate of 25%, driven by market forces and customer savings behaviours.
Alec Hogg (13:25.838): Your insights into future growth are intriguing. Do you expect to sustain these positive trends in the second half of the financial year?
Charles (14:09.705): The momentum we've built is strong, with record-breaking numbers in revenue and deposits. While interest rates may be challenging, our trajectory indicates continued success and growth.
Alec Hogg (17:29.609): Reflecting on your journey, do you feel you've improved with time in running the business?
Charles (20:17.769): I've become more data-focused and customer-centric, learning from past experiences and more attentive to client needs.
Alec Hogg (21:57.289): Do you anticipate replicating these results in the next financial year?
Charles (24:28.142): I'm confident in our ability to sustain growth and navigate future challenges, building on our established momentum.
Alec Hogg (24:28.142): Charles Savage, CEO of Purple Group, it's been insightful hearing about your journey and the exciting prospects ahead. We look forward to witnessing the continued success of Purple Capital.
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