Transaction Capital (the group) remains among the best performers on the JSE Limited. Over the past five years, the group has delivered compound annual growth in core headline earnings per share and dividends per share of 20% and 31%, respectively.
The group's market capitalisation has risen to R13.6 billion from R3.9 billion at 30 September 2014, and an investment of R10 000 in Transaction Capital then would have grown to R38 757 today, assuming the reinvestment of dividends paid. This achievement in returning value to our shareholders earned the group second place in this year's Sunday Times Top 100 Company Awards.
How does transaction capital's business model create shared value?
We have refined our business model over the last 20 years and proven its effectiveness in generating attractive risk-adjusted returns from carefully identified credit-orientated alternative assets. The strong growth of our business platforms, which manage these assets, has significantly increased their value, adding capital appreciation to the total return delivered to our shareholders.
What progress has been made on the Ownership transaction between SA Taxi and Santaco?
We finalised the transaction on 6 February 2019, and I can already say it has been a success. While we anticipated some of the benefits, which we discussed in our integrated annual report and other announcements last year, there have been many unanticipated benefits for our business, which have become evident since then.
There have been important regulatory developments related to debt relief in south africa. What is the impact on tcrs?
The methods we use have proven to be reliable, accurate and predictive through different economic cycles. We have purchased around 250 to 260 books over almost two decades, which provides a wealth of experience and data to keep testing and refining our model. In a deteriorating economic environment where debt repayments are slowing, our surrogates show us how our books are likely to be affected. We build this into our predictive models to account for changing conditions.
The group’s capital management strategy remains conservative and appropriate for the current economic conditions. At holding company level, our balance sheet is strong and debt free with undeployed capital of R950 million, providing ample capacity to fund organic and acquisitive growth.
Despite the economic deterioration in South Africa, Transaction Capital delivered excellent organic growth in 2019, driven by strong client acquisition, innovative product development, focused operational execution and robust risk management. Both core headline earnings and core headline earnings per share increased 18% to R803 million and 131.3 cents respectively. SA Taxi grew core headline earnings 38%, resulting in the group’s attributable portion of SA Taxi’s core headline earnings growing by 21% to R446 million. TCRS achieved headline earnings growth of 15% to R313 million.
Q & A with Chief Executive Officer
Q & A with SA Taxi CEO
Q & A with TCRS CEO
Q & A with Executive director: Capital management
Financial directors report