Performance overview

FINANCIAL HIGHLIGHTS

CORE HEADLINE EARNINGS (Rm) TOTAL INCOME (Rm) RETURN ON EQUITY (%) RETURN ON ASSETS (%)
CORE HEADLINE EARNINGS (Rm) TOTAL INCOME (Rm) RETURN ON EQUITY (%) RETURN ON ASSETS (%)

STRATEGIC AND OPERATIONAL HIGHLIGHTS

GROUND-BREAKING OWNERSHIP TRANSACTION WITH SANTACO

  • SANTACO acquired a 25% interest in SA Taxi for R1.7 billion on 19 November 2018.
  • The transaction delivers broad-based participation in the value chain for an entirely black-owned industry.
  • Alignment with minibus taxi industry to yield further operational benefits.

For details, see the Q&A with David Hurwitz, CEO and the Q&A with Terry Kier, SA Taxi CEO.

DELIVERING ON GROWTH – ACQUISITION OF NON-PERFORMING LOANS (NPLs) AS PRINCIPAL

  • 33 portfolios acquired for R639 million with a face value of R13.4 billion in South Africa.
  • Further investment of R23 million in Australian portfolios.
  • 239 portfolios owned in total with a face value of R22.4 billion.
  • Purchased book debts increased 54% to R1.4 billion.
  • Estimated remaining collections (120 months) increased 60% to R3.0 billion, expected to support positive future performance.

For details, see the Q&A with David McAlpin, TCRS CEO.

EVOLUTION BEYOND FOUNDATION PHASE

Accelerated bookbuild in March 2018
  • Expanded base of local and specifically international investors.
  • International shareholding increased to 16% (from 6%).
  • Everglen remains the largest shareholder at 29%.

For details, see the Chairman’s report.

Enhanced liquidity and daily trade
  • Significant increase in free float to 68%.
  • Average daily number of shares traded increased 105% to 468 558.
  • Average daily value traded increased 142% to USD595 601.
 

DEBT CAPITAL MARKETS

  • SA Taxi raised R4.0 billion in 2018, with 2019 fully funded.
  • R1.0 billion Transsec 3 initial and tap issuance more than 2.6 times oversubscribed and priced more than 80 basis points lower than Transsec 2 total issuance.
  • 20% international debt and 80% local debt.
  • USD100 million debt facility approved by African Development Bank.

For details, see the Q&A with Mark Herskovits, executive director: capital management.

UNGEARED AND LIQUID BALANCE SHEET

  • Balance sheet remains well capitalised.
  • Liquid excess capital of approximately R650 million.
  • Capital adequacy ratio of 30.9%.
  • Capacity and flexibility to continue investing in organic and acquisitive opportunities.
  • Early adoption of IFRS 9 in 2015 (prior to 2018 deadline).

For details, see the Financial director’s report.

STRATEGIC POSITIONING OF OPERATING DIVISIONS

Six years since listing
  • Headline earnings per share compound annual growth rate (CAGR) of 20%.
  • Dividend per share CAGR of 33%, growing faster than earnings and supported by high cash conversion rates.
  • Total dividend per share increased 25% to 50.0 cents from prior year.
Delivering robust organic growth
  • Highly defensive businesses.
  • Vertically integrated, diversified and scalable financial services platforms led by entrepreneurial and innovative management teams.
  • Leveraging proprietary data and technology to develop new products and expand into new markets.
  • Delivering commercial returns and social benefits.

For details on these divisions, see the SA Taxi section and TCRS section.