Transaction Capital Limited, a key player in South Africa’s financial landscape, has recently released its full-year trading statement for the fiscal year ending September 30, 2023.
Financial Snapshot: Expected vs. Actual Performance
Here’s a comprehensive breakdown of the financial performance, comparing the expected and actual figures for the full year:
|-R784m to -R703m
|Earnings Per Share (EPS)
|-103.3c to -92.5c
|-R958m to -R874m
|-126.1c to -114.9c
|R220m to R282m
|29.0c to 37.2c
|Net Asset Value
|R8,624m to R9,211m
|NAV Per Share
|1,130.3c to 1,207.3c
Business Portfolio: A Closer Look
Transaction Capital holds majority stakes in three distinct businesses: Mobalyz (SA Taxi and Gomo), WeBuyCars, and Nutun.
Challenges and Strategies: SA Taxi’s Journey
Challenging Economic Environment
SA Taxi faced economic headwinds impacting operators’ ability to afford new minibus taxis, prompting a strategic shift. The decision to finance only pre-owned vehicles aimed to enhance affordability in this market segment.
Restructuring SA Taxi:
Balance Sheet Restructuring:
WeBuyCars: Surprising Turnaround in H2 2023
WeBuyCars, initially projected for a 20% YoY earnings decline, witnessed a positive turnaround in H2 2023, exceeding expectations. The last trading quarter played a crucial role in improving overall earnings, showcasing resilience in a challenging economic climate.
Nutun: Consistent Performance
Nutun’s performance for FY2023 remained in line with the guidance provided in the pre-close update. This consistency reflects a stable operational environment for Nutun within the Transaction Capital portfolio.
Upcoming Milestone: Results Announcement
Transaction Capital will unveil its full-year results for the period ending September 30, 2023, on Tuesday, December 5, 2023. Shareholders are encouraged to register for the live results presentation, offering insights into the company’s financial health.
Transaction Capital’s trading statement reflects a mix of challenges and successes in a dynamic economic landscape. The strategic response to industry shifts in the minibus taxi sector demonstrates adaptability, and the positive turnaround in WeBuyCars showcases resilience. As the company continues its journey, the upcoming results announcement on December 5, 2023, will provide a more in-depth look into Transaction Capital’s financial standing.