The SA Tax business unit is a cash cow for Transaction Capital (TC)
Business model gained relevance in COVID-19 environment
and the taxi industry is indispensable to South Africa’s economic activity.
Taxis remain the largest & most vital service in public transport network.
Business model gained relevance in COVID-19 environment
and the taxi industry is indispensable to South Africa’s economic activity.
Taxis remain the largest & most vital service in public transport network.
In 2019, SANTACO bought a 25% stake in SA Taxi for R1.7bn.
SA Taxi used ~R1bn of the net proceeds of R1.2bn to settle interest-bearing external and shareholder debt. The reminder was retained by SA Taxi to fund growth.
SA Taxi used ~R1bn of the net proceeds of R1.2bn to settle interest-bearing external and shareholder debt. The reminder was retained by SA Taxi to fund growth.
SA Taxi runs a vertically integrated business model offering; sale of taxis, financing, insurance and auto parts and it lends to about 35,000 vehicles.
The taxi industry is carrying the transport sector on its shoulders.
Minibus taxi usage ⬆️ 16% since 2013 and it is;
• Preferred form of transport due to accessibility & flexibility with ~15 million commuter trips daily.
Bus ⬇️>28% since 2013
Rail ⬇️~64% since 20131
Minibus taxi usage ⬆️ 16% since 2013 and it is;
• Preferred form of transport due to accessibility & flexibility with ~15 million commuter trips daily.
Bus ⬇️>28% since 2013
Rail ⬇️~64% since 20131
The ⬇️ in the repo rate did not affect SA Taxi much as it already charges high rates ( interest rates range 12.5% to 26.75%, with a 7.8%
average cost of borrowing)
The net interest margin is ~11.8%.
SA Taxi has R13.2 billion
in Gross loans & advances and 34 107
Loans on Book.
average cost of borrowing)
The net interest margin is ~11.8%.
SA Taxi has R13.2 billion
in Gross loans & advances and 34 107
Loans on Book.
SA Taxi’s results for HY ended 31 Mar 2021:
Headline earnings ⬆️13% to R228 million
Non-interest revenue ⬆️2% to R366 million
Gross loans and advances ⬆️ 16% to R13.2 billion
Non-performing loan ratio 27.1% (HY20: 19.1%)
Credit loss ratio 4.6% (HY20: 6.1%)
Return on equity 15.1%
Headline earnings ⬆️13% to R228 million
Non-interest revenue ⬆️2% to R366 million
Gross loans and advances ⬆️ 16% to R13.2 billion
Non-performing loan ratio 27.1% (HY20: 19.1%)
Credit loss ratio 4.6% (HY20: 6.1%)
Return on equity 15.1%
SA Taxi will continue to provide Transaction Capital and SANTACO with so much value going forward as our government has no idea on how to provide alternative effective public transport services.
The management team at Transaction Capital are going about their business in a an amazing manner.
TC's other business unit is Transaction Capital Risk Services — a debt collector. TC loves businesses that deal mainly in cash. It's earnings for 6 months to March 2021 rose 27% to R131m.
TC bought a 49,9% stake in Sep 2020 and it contributed R113m to TC's overall earnings.
They will be increasing their stake in WeBuyCars to 74,9%.
With the growth that Transaction Capital is experiencing, The PIC will hold on to their 15% stake Transaction Capital.
They will be increasing their stake in WeBuyCars to 74,9%.
With the growth that Transaction Capital is experiencing, The PIC will hold on to their 15% stake Transaction Capital.
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