Back on the growth road

For all the wailing and gnashing of teeth about the squeeze on the local consumer, Transaction Capital’s interim results looked surprisingly perky. The company presented its results against the anomalous numbers of 2020 and the pre-pandemic scores from 2019, and this suggests a strong recovery back onto the growth track it enjoyed before the world stopped turning.

The group’s taxi business was able to operate throughout, and benefited from consumers’ switching increasingly to taxis instead of alternative modes of transport.

Social distancing trends limited the sardine-based passenger loading model, putting pressure on profitability, and SA Taxi is addressing this by offering fully refurbished pre-owned taxis to reduce the cost of entry in buying a vehicle.

The risk services business put in a resilient performance, with rising consumer debt levels throwing out opportunities to acquire new loan portfolios, while collection rates remained in line with expectations.

The big news of the year was the acquisition of 49.9% of WeBuyCars, along with the intention of buying a further 25% subject to Competition Commission approval.

The group is expecting consumers to prefer second-hand, rather than new, vehicles, as disposable income is under strain, new vehicle prices continue to rise and supply chain wobbles affect the availability of new vehicles. It’s also looking to expand its e-commerce business, expand geographically and extend the provision of finance and insurance to keep the company on its impressive growth path.

SA Taxi is offering fully refurbished pre-owned taxis to reduce the cost of entry in buying a vehicle