Transaction Capital to go out with a whimper

Transaction Capital continues to face challenges that have led to large losses for the 2024 financial year, which will likely be the company’s last results under its current name.

Transaction Capital released a trading update for its 2024 financial results on Monday, 9 December.

The company was expected to publish its results on Monday, but changes related to SA Taxi delayed their finalisation.

In addition, the company adjusted its expected earnings for the 2024 financial year, which differ from the ranges it provided in a trading statement on 28 November.

Now, Transaction Capital expects its core loss for total operations to worsen by between 173% and 183%, to a loss of between R1.94 billion to R2.02 billion.

While the company’s basic loss is expected to narrow by around 42% to 53%, its headline loss worsened by between 24% and 34%.

This comes after Transaction Capital announced at the end of November that 2024 was a “watershed year” for the company and said its current strategy will result in the company ceasing to exist and being replaced with Nutun.

In 2024, the company raised R1 billion from the unbundling and separate listing of WeBuyCars and disposed of its controlling interest in Mobalyz. 

Transaction Capital has also disposed of several operations within Nutun to strengthen its balance sheet and focus on its core businesses. 

In a trading update at the end of November, the company said the conclusion of this strategy will be “Transaction Capital ceasing to exist in its current form”.

It will be replaced with the first-listed global specialist business process outsourcing business on the JSE in the form of Nutun.

“While much has been achieved in the first year of this two-year process, the disappointing 2024 results are reflective of the fact that the transition is not yet complete,” the company said.