Mission and investment case
FINANCIAL AND ALLIED SERVICES
IN HIGHLY SPECIALISED AND
UNDER-SERVED SEGMENTS OF
THE FINANCIAL SERVICES SECTOR.
EXECUTING ON TRANSACTION
CAPITAL’S MISSION CREATES A
COMPELLING AND UNIQUE
TRANSACTION CAPITAL COMPRISES A DIVERSIFIED PORTFOLIO OF FINANCIAL SERVICES ASSETS
- Two well established, autonomous and
unique financial services businesses:
- SA Taxi
- Transaction Capital Risk Services
- Positioned in attractive market segments occupying leading market positions.
- Highly defensive businesses able to withstand
difficult economic conditions.
- Deep vertical integration enabling the
application of specialised expertise to
mitigate risk, participate in margin and
provide a broader service to clients.
- Superior data, leading-edge technology
and analytics capabilities differentiate our
offerings, inform business decisions and
- Via a diversified business model:
- Unique blend of highly cash generative
and capital-related businesses.
- Diversified revenue model across adjacent
market segments and geographies.
WITH A BESPOKE AND ROBUST
CAPITAL STRUCTURE INCORPORATING
R1 BILLION* OF EXCESS CAPITAL
- Conservative equity capital structure to fund
organic growth and acquisition activity:
- Ungeared at holding company level.
- Proven ability to raise debt and equity
capital efficiently from a diversified range
of local and international investors.
ESTABLISHED AS A SCALABLE
FINANCIAL SERVICES PLATFORM
- For SA Taxi and TCRS to develop new
products and expand into new markets.
- For Transaction Capital to innovate in
introducing new organic and acquisitive
WHICH IS LED BY AN
- Ownership culture.
- Decentralised, entrepreneurial, innovative,
proven and long-serving leadership.
- Specialised intellectual capital applied in
managing a much smaller asset base than in
AND UNDERPINNED BY A ROBUST
GOVERNANCE FRAMEWORK AND
SOUND GOVERNANCE PRACTICES
- Experienced, diverse and independent
directors at group and subsidiary level.
- Institutionalised governance, regulatory and
risk management practices.
- Conservative accounting policies (including
the early adoption of IFRS 9).
WHICH TOGETHER POSITION THE GROUP
FOR SUSTAINABLE GROWTH
- Decentralised businesses that are
self-sustaining and sizable in their own right.
- Unrelenting investment into and precise
implementation of innovative strategic
- Track record of delivering predictable and
consistent high-quality earnings with high
cash conversion rates and strong organic
- Dividends growing at an accelerated rate
when compared to earnings.
- A focussed acquisition strategy supported by:
- R1 billion of excess cash*.
- Highly cash-generative businesses.
- Supportive capital markets.
- A strong unleveraged balance sheet.
AND THE DELIVERY OF A MEANINGFUL
- Businesses favourably positioned in relation to
demographic and socio-economic trends,
delivering social and commercial benefits.
- SA Taxi facilitates:
- Asset ownership by black-owned
small and medium-sized enterprises
(SMEs), financial inclusion, SME
empowerment and sustainable job creation.
- Improved public transport infrastructure.
- Environmental sustainability.
- TCRS facilitates:
- Credit rehabilitation of over-indebted
- Lenders to maintain cleaner balance sheets
to continue extending credit affordably.
- Lending to SMEs.
* Post SA Taxi’s equity transaction with SANTACO.