Vehicle and taxi financier Transaction Capital faced a bloodbath this week as investors, shaken by a trading update that flagged problems in its taxi finance business and used-vehicle operation, dumped its shares at such a rapid rate that the share price halved. 

On Monday, Transaction Capital said in a trading update that it expected a more than 20% drop in half-year earnings amid margin pressure at WeBuyCars, in which it has a 75% stake. It said its SA Taxi business was unlikely to recover to pre-Covid levels in the short to medium term, leading to the restructuring of the unit...

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