Report
David Talpert

Transaction Capital | Lots of fuel left in the tank

We expect Transaction Capital (TCP) to deliver 16% H1 '19 earnings growth. We expect SA Taxi to grow attributable earnings by 20% despite a challenging operating environment. TCRS's growth slowed due to a difficult operating environment. TCP's diversified business model is resilient delivering consistent earnings growth despite slow economic growth. We believe TCP has multiple opportunities to supplement earnings growth.
Underlying
Transaction Capital

Transaction Capital Limited is a South Africa-based investment holding company. The Company operates as a non-deposit taking financial services company. The Company's segments include SA Taxi, Transaction Capital Risk Services, and Group executive office. The Company operates in two principal areas: SA Taxi and Transaction Capital Risk Services. SA Taxi is a vertically integrated taxi platform utilizing specialist capabilities and data to deploy developmental credit and allied business services to manage small-and medium-sized enterprises (SMEs).It has designed its own insurance products that it sells through its own insurance cell captive entity. Transaction Capital risk services division is a provider of customer management and capital solutions through a platform, enabling its clients to mitigate risk through their customer engagement lifecycle. It provides a range of services to SMEs, which include property and trade financing, as well as invoice discounting.

Provider
Avior Capital Markets
Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

Analysts
David Talpert

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