Investors unfazed as Transaction Capital hangs on to interim dividend
Shares jumped to their highest close in almost two weeks as the CEO eyes the resumption of taxi activity
Transaction Capital’s shares jumped to their highest close in almost two weeks as the company bet on the “indispensable” taxi industry and growth in its debt-collection business as cash-strapped consumers struggle to make bank repayments in the wake of the Covid-19-induced economic slump.
In addition to SA Taxi, which funds and insures the multibillion-rand minibus industry, the company also owns TCRS, which buys non-performing loans from banks at a discount and then collects them. The near-shutdown of the economy has seen a drop in activity, leading to R126m impairment provision for SA Taxi while it reduced the assumed value of loans in TRC’s portfolio...