SA Taxi's

SA Taxi’s Struggles Impact Transaction Capital’s Financials

  • Substantial Losses at SA Taxi: SA Taxi, a subsidiary of Transaction Capital, reported a significant headline loss of R3.7 billion for the year, primarily driven by increased repossessed vehicle stock write-downs, totaling R1.1 billion. This reflects a substantial rise from the previous loss reported in the first half of 2023.
  • Operational Restructuring and Challenges: Transaction Capital aims to complete the operational restructuring of SA Taxi by March 2024, focusing on stabilizing the business through cost reduction measures and repositioning efforts in the pre-owned minibus taxi market. However, the success of this restructuring heavily depends on reaching a resolution with existing debt funders by the same deadline.
  • Overall Financial Impact and Outlook: The financial results of Transaction Capital showcase a significant decline in headline earnings per share from continuing operations, indicating a -144% decrease compared to the previous fiscal year. Despite the challenges faced, the company remains optimistic about the future outlook for the second-hand vehicle market in South Africa, especially for WeBuyCars, while dividends have been suspended until successful restructuring occurs.

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