Transaction Capital half-year loss improves 27%

Transaction Capital, a financial services group based in South Africa, has recently released its half-year financial results, showing a 27% improvement in its headline earnings per loss. CNBC Africa's Godfrey Mutizwa spoke with CEO Jonathan Jawno to discuss the company's performance and future outlook. Jawno emphasized that despite the challenges faced, Transaction Capital is on a path to simplifying its operations and driving growth. He highlighted the recent divestment of 'We Buy Cars,' a subsidiary that had been unbundled in April. This move, along with the sale of other discontinued operations, contributed to the cleaner financial picture presented in the results. One of the key areas of focus for Transaction Capital is its SA Taxi business. While the company saw improvements in the losses incurred by SA Taxi, Jawno acknowledged that there is still work to be done. He discussed the restructuring efforts, including operational changes and resizing the business to optimize its operations. However, he noted that securing funding remains a critical aspect for the business's future success. Transaction Capital has proposed a plan to its funders, aiming to ensure uninterrupted operations and new originations. The CEO expressed confidence in reaching a favorable agreement with the funders, emphasizing that all stakeholders are committed to seeing the business thrive. Looking ahead, Jawno outlined Transaction Capital's vision for the future. The company has taken steps to simplify its structure, paying off debts and streamlining its leadership team. By focusing on simplicity at the core, Transaction Capital aims to drive efficiency and growth in its taxi and Newton operations. Jawno highlighted the ongoing efforts to eliminate complexity and introduce a more agile and streamlined approach within the organization. He expressed optimism about the progress made so far and emphasized the importance of continued focus on simplification and efficiency. As Transaction Capital moves forward, the company is positioned to leverage its strengthened foundation to drive sustainable growth. With a clear strategic direction and a commitment to operational excellence, Transaction Capital is poised to navigate challenges and capitalize on new opportunities in the financial services sector.