Integrated Annual Report

About this report

Our integrated annual report (this report) provides insight into Transaction Capital’s business model and strategy, and evaluates our governance processes, our commercial and social performance, and our prospects for continued value creation for our stakeholders.


This report covers the financial year from 1 October 2019 to 30 September 2020, and includes material developments subsequent to the financial year end, up to the board approval date of this report. The scope of this report covers the group holding company and its divisions, as set out in the group profile, as well as other businesses in which the group has a significant interest. While Transaction Capital (the group) operates primarily in South Africa, this report also assesses our operations in Australia and our expansion into selected markets in the European Union.

Although this report is aimed primarily at providers of financial capital to inform their assessment of Transaction Capital’s ability to create value over the short, medium and longer term, we consider the information herein to be of value to all stakeholders.


Group executive management was extensively involved in preparing this report and believes it covers all factors deemed to be material to the group’s ability to sustainably generate robust commercial returns and positive social impact.

To confirm this assertion of completeness, in 2019 we conducted a formal materiality determination process. The scope of this independent analysis was limited to board reports, board and committee meeting minutes, and interviews with group executive management. This year, we reassessed and updated our material matters to reflect developments in our operating environment. We will continue to refine the materiality determination process over time.

We have again included letters from our board committee chairpersons to provide stakeholders with greater insight into the key deliberations and decisions that inform the group’s governance processes. This year we have included an abridged governance report in this report, with the full governance report available online. Likewise, we have condensed our risk reporting in this report to focus only on material dynamic risks in executing our strategy, with more comprehensive detail provided in the full risk report online.


This report contains certain forward-looking statements based on the beliefs or expectations of Transaction Capital’s directors and other members of its senior management about the group. These include statements concerning plans, objectives, goals, strategies or future events. Forward-looking statements are based on current views and assumptions, and involve known and unknown risks, uncertainties and other factors. Consequently, no guarantee or assurance can be given that forward-looking statements will prove accurate, and readers are advised not to place undue reliance on them.


This report is prepared in accordance with IFRS, the JSE Listings Requirements and the South African Companies Act 71 of 2008, and with reference to the International Framework of the International Integrated Reporting Council.

Transaction Capital conforms to the principles contained in King IV.


The audit, risk and compliance (ARC) committee is responsible for monitoring the appropriateness of the combined assurance model and applies a co-ordinated approach to assurance activities. Combined assurance includes monitoring and oversight across executive and senior management, internal and external audit, as well as the board and its committees.

The external auditors, Deloitte & Touche, have issued an unmodified opinion on the annual financial statements. The audit was conducted in accordance with International Standards on Auditing. The scope of the audit was limited to the information set out in the annual financial statements and does not extend to the content of this report.


The group executive office is responsible for compiling this report, with oversight from the group chief financial officer (CFO) and review and approval of all content by the group chief executive officer (CEO). Group internal audit provides a detailed audit on all financial and non-financial indicators, with the external auditors providing assurance as detailed in the independent auditor’s report (available in the audited annual financial statements).

The ARC committee acknowledges its responsibility on behalf of the board to ensure the integrity of this report. Accordingly, it has applied its collective mind to this report and believes it appropriately and sufficiently addresses all material matters and fairly presents the integrated performance of Transaction Capital and its divisions for the year, within the stated scope and boundary.


The ARC committee recommended this report to the board for approval, obtained on 11 January 2021.


Chairman of the board


Group chief executive officer


Group chief financial officer