Transaction Capital’s strategy pays off
Turns wheels for SMEs, jobs
TRANSACTION Capital in the six months from October 2016 to March 2017 advanced R1.4 billion of funding, created 3 764 black-owned small, medium, enterprises (SMEs) and more than 18 000 jobs, it said on announcing its results yesterday.
The group operates two divisions: SA Taxi and Transaction Capital Risk Services (TCRS). It is a provider of specialised financial and allied services in selected higher-risk and under-served segments of the financial services sector in South Africa and Australia.
Chief executive David Hurwitz said SA Taxi had launched many entrepreneurs in the past number of years.
“SA Taxi has enabled more than 70 000 new entrepreneurs to enter and grow our local economy through the R17.1 billion of loans granted, creating 61 344 black-owned SMEs and almost 300 000 jobs since 2008,” he said.
SA Taxi offers several servi- ces to the taxi industry, including new and second-hand retail vehicle sales, vehicle finance, insurance and telematics data and technology services. The business model is vertically integrated, supporting margins across the value chain.
The group’s strategy is to buy and develop complementary businesses that support the growth of its divisions and to diversify internationally.
“Each business is cash generative with a proven track record and scalable business model, which the group is well placed to develop through active management and potential bolt-on acquisitions,” said Hurwitz.
The company would continue to pursue acquisitions as part of its growth strategy should opportunities arise, it said.
Transaction Capital acquired three businesses in the last six months.
Through its TCRS division, it acquired 100 percent of Recoveries Corporation in Australia, effective January 1 this