Transaction Capital CEO David Hurwitz is bullish on the firm’s acquisition in Australia, its first outside SA. After announcing more than two years ago that it had a R1bn war chest, Hurwitz pleased shareholders on Tuesday with news that it had deployed R500m on three acquisitions, one in Australia and the others in SA. "We are encouraged that management have deployed excess capital and expect this will result in an improved return on equity, which has recently been low as a result of a lazy balance sheet," said Bjorn Zietsman, a portfolio manager at CoroCapital. "We expect the return on equity to trend north of 20% over the next 18 months, which should prompt a rerating in the share price," said Liam Hechter, an analyst at Anchor Capital. On Tuesday, the share ended 3.14% ahead of its Monday close, as the specialist financial services business posted a 17% increase in headline earnings to R458m for the year to September over the previous period. Earnings were in line with expectatio...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.