To sustainably create value for its shareholders over time, Transaction Capital's activities include:

  • Strengthen the leading market positions and scale of its divisions by enhancing and refining its specialist capabilities to achieve deeper vertical integration in current market segments, and apply these capabilities to new complementary market segments.
  • Due to its ability to manage the credit risk associated with its chosen market segments to a level acceptable to funders, Transaction Capital continues to enjoy uninterrupted access to local and international funding pools. Thus, Transaction Capital is able to serve as a conduit between local and international funders and small- and medium-sized enterprises (SMEs).
  • Judiciously invest equity capital, conservatively leveraged with local and international debt, into accurately assessed asset classes to achieve superior risk-adjusted returns.
  • Leverage its specialist capabilities to manage credit risk that arises due to the nature of its chosen market segments, and to manage investment risk when allocating capital.
  • Manage uncertainty and the cost of compliance due to the constant evolution of financial services regulations, which requires awareness of, preparation for, and participation in legislative developments.
  • Transaction Capital's ability to differentiate itself through intellectual capital is a function of its people, who the group motivates, engages, develops and rewards to foster innovation, cultivate leadership and sustain a high performance culture.


OUTCOMES

POSITIONED DELIBERATELY IN RELATION TO DEMOGRAPHIC AND SOCIO-ECONOMIC REALITIES, TRANSACTION CAPITAL'S DIVISIONS DELIVER BOTH RETURNS AND SOCIAL BENEFITS.


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PERFORMANCE OVERVIEW


FINANCIAL HIGHLIGHTS



STRATEGIC AND OPERATIONAL HIGHLIGHTS

Delivering robust organic growth
  • Occupy leading market positions with highly defensive businesses
  • Vertically integrated, diversified and scalable financial services platforms
  • Leverage proprietary data and technology to develop new products and expand into new markets

  • Balance sheet remains well capitalised
  • 28.4 million shares issued, raising R419 million in 2017
  • Liquid excess capital of approximately R650 million
  • Capital adequacy ratio of 32.6%
  • Capacity and flexibility to continue investing in organic and acquisitive opportunities
  • Early adoption of IFRS 9 in 2015

Uninterrupted access to debt capital markets
  • Despite political instability and South Africa’s sovereign rating downgrade
  • SA Taxi raised R6 billion in 2017, with 2018 fully funded
  • Secured over R2 billion of debt facilities from US-based development finance institutions (DFIs) during 2017
  • R505 million Transsec 3 issuance, more than three times oversubscribed and priced 81 basis points lower than Transsec 2
Credit ratings
  • Moody’s awarded a Aaa.za(sf) rating to Transsec 3 senior notes
  • Global Credit Ratings Co. reafirmed Transaction Capital’s R2 billion A-(ZA) rated JSE-listed domestic note programme

  • High quality organic earnings growth with high cash conversion rates
  • Dividends growing at an accelerated rate when compared to earnings
  • Final dividend per share increased 39% to 25 cents
  • Total dividend per share increased 33% to 40 cents
  • Dividend policy amended to 2 to 2.5 times (previously 2.5 to 3 times)
  • Total dividend cover of 2.4 times (2016: 2.7 times)

TRANSACTION CAPITAL'S EVOLUTION SINCE LISTING


SINCE LISTING IN 2012, MANAGEMENT HAS IMPLEMENTED A NUMBER OF INTERVENTIONS TO SUPPORT STRONG ORGANIC GROWTH, ENSURE IMPROVEMENT ACROSS KEY METRICS AND CREATE VALUE FOR STAKEHOLDERS.



1. Core headline earnings per share, excluding the impact of Paycorp and Bayport.
2. Sunday Times ‘Top 100 Companies over 5 years’ 2017.
3. CAGR between 2014 and 2017, excluding the impact of Paycorp and Bayport.

2012

JUNE 2012:
Listed on the JSE Limited

2013

DECEMBER 2013
Bayport disposal for R1.3 billion

NOVEMBER 2013
Paycorp disposal for R937 million

2014

MARCH 2014
Capital distribution of 210 cents per share (cps) or R1.2 billion in total

2015

NOVEMBER 2015
Early adoption of IFRS 9

JANUARY 2015
Board restructured and group executive office simplified

2016

DECEMBER 2016
Acquired Road Cover and The Beancounter

NOVEMBER 2016
Established a R2 billion domestic note programme

OCTOBER 2016
Conditional share plan approved

2017

NOVEMBER 2017
Dividend policy amended to 2 to 2.5 (4 to 5 times at listing)

FEBRUARY 2017
Issued 28.4 million shares raising R419 million

JANUARY 2017
Acquired Recoveries Corporation in Australia

Improved dividend cover to 2.4 times (2013: 4.5 times)

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INTRODUCTION